The 52-Week Low Formula
The 52-Week Low Formula is all about looking at companies to invest in and asking the following questions: Do they have a durable competitive advantage? Are the kind of company that is hard to compete with either because they have cornered a difficult market or because competing with them would require an unreasonably high investment by others?What is the purchase value of the company? If someone were to come in and buy everything, would they inherit debt greater than revenue? And, if you were to buy the company, would it be worth it? Would you make more money that you would simply investing in 10-year Treasury bonds?What's the Return on Invested Capital of the company? Is it using its money well to create returns or is it taking on bad investments that don't pay off?Can it pay its debt off quickly? There are a lot of companies out there that are making a lot of money, but can they, should all revenue activities cease and all debt come due, remain in the black?Finally, is it trading
Absolutely stunning and flawless. Promoted to one of my all-time favorite books. I've no clue how the author wrote this, but it is absolutely incredible.