The Introdocution of value investing came to a close with this final lessen. Ending conclusion: Good investors aren’t born—they’re made, not through brilliant insights, but by consistently applying simple, yet powerful habits over time. Investing is a verb—and above all, a lifelong learning journey. Enjoy the process! (see next post for link)

The introduction to value investing is coming to a close. This week the second to last lessen. Lesson 18 - What we can learn from famous value investors. In this lesson I bring one core idea from the 10 value investors that influenced me the most. (Link in next message)

Lesson 17 in our Value Investing 101 course. I've waited until now to burst some bubbles. Stocks won't make you rich. That doesn't mean you shouldn't invest. In the contrary not investing is a sure way to get poorer. Link in next message

Lesson 16 of my Value Investing 101 course is now live. Knowing when to sell. Easy in theory, hard in practice. See next message to find it...

You can analyze a company thoroughly, know the numbers down to the last decimal, and find what seems to be an attractive valuation… but if the management is no good, you're still at serious risk of disappointment. The importance of management quality is often underestimated. And that’s understandable: it’s harder to measure than things like profit growth or return on equity. Still, it’s a crucial part of fundamental analysis, especially for long-term investors. As a shareholder, you’re a part-owner of the business, and you only want to partner with people you trust and respect. Benjamin Graham put it well: “Shareholding theoretically gives control over the company. In practice, shareholders behave like passive spectators.” There are three central reasons why management is critically important: 1/ Strategy and vision set the direction of the ship - Without a clear course, there's no sustainable growth. 2/ Capital allocation determines how efficiently a company grows - What do they do with profits? Reinvest? Pay dividends? Make acquisitions? Reduce debt? 3/ Culture and integrity shape the durability of success - Company culture comes from the top. Good leadership promotes transparency, accountability, and long-term thinking. Read more about assessing management in Lesson 15 of our beginners friendly introductory course in Value Investing (link in next post)

Brief Tirade on ROIC ROIC can only be the most decisive factor if you pick a top-tier company that can sustain outstanding performance for decades and if, as an investor, you’re lucky enough to hold onto it all that time without needing to cash out for a major purchase. But sustainable competitive advantages (or “moats”) are hard to identify. The world changes so fast that a moat often disappears sooner than you think. And most of the time, you’ll only see that moat show up in the numbers years later, by then, you’ve already missed the biggest part of the growth. Focusing solely on ROIC and “quality” without considering valuation is like driving using only the rearview mirror. It doesn’t help you make decisions today, especially when you don’t know what lies beyond the horizon. I predict that within five to ten years, 90% of what’s currently labeled as “quality” will mostly turn out to be momentum stocks. And there’s nothing wrong with that, a momentum strategy can be very profitable. It often performs well when value strategies falter, and vice versa. Backtests even show that a combination of both can yield strong long-term results. As long as you understand that you’re following a momentum strategy, nothing more. Want to know what triggered this tirade: read the full article (link in next post)