Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

20 Things You Need to Know about Value Investing

or More random items about what this blog is about than you really wanted to know This is a reworked article that I posted back when Chroma first started, but no one read it, so it is new information to anyone hanging out now. What is this Value Investing Blog about anyway? Since you are […]

Beginning Value Investor Term – Beta

Beta is a funny looking Greek character that gets thrown around a lot in finance circles. It can be used to estimate correlation of an asset to the over-all market. What? If you compare an asset, say stock in a company, to a market, say the S&P 500, you can establish a relationship between them. […]

Value Investing Criteria that Works- Low Price to Free Cash Flow (FCF)

In Value Investing we do not use only one set of criteria, clap our hands and say Eureka, I have it! We have several metrics that we can use in our Value Investing toolkit, sometimes in conjunction with each other to evaluate a company and discover if it is a bargain. What is Low Price […]

Beginning Value Investor Terms – Exchange Traded Fund (ETF)

Although this site is largely geared toward individual stocks, it seems to me, to better serve the beginning investors I need to address the more passive investment strategies that may be attractive to individual investors without much time on their hands to investigate individual companies but want to understand their investments. ETF Defined An Exchange […]

Mutual Funds – Beginning Value Investor Terms

Mutual Funds are investment vehicles that are designed for people who do not want to spend a lot of time researching individual stocks, bonds or other assets, but still want part of their portfolio investment in these markets. It is not quite so simple as you will see. Your money is pooled with that of […]

Crash Proof 2.0 The Good, the Bad, and the Ugly

I recently finished the book Crash Proof 2.0 and I was surprised on two counts. Peter Schiff, one of the co-authors, is at least, by the evidence of this book and his podcasts, an attention seeking, ego maniac. The first surprising thing for me was,  there is actually some thoughtful information contained in the book. […]

Margin of Safety – Beginning Investor Terms

Margin of Safety is a concept I write about a lot. It is the make or break for any investment. While I may fudge the amount from time to time, all investments have to have a margin of safety to be worth shelling out my cash. But what is a Margin of Safety?

Does a Risk Free Rate Really Exist?

I was perusing Musings on the Markets, Damodaran’s blog and came across a post entitled Thoughts on the Risk Free Rate. Perhaps, because I am not an academic, I usually reject ideas that seem contrary to logic or that seem designed for an academic and not practical use. The Risk Free rate is one of these notions.

Intrinsic Value – Beginning Investing Terms

Intrinsic value may be the most important concept in value investing. It is the foundation of everything else. Value Investors all agree that you start with the intrinsic value of a company. Now, how you arrive at that value is a different proposition, there you will have a lot of disagreement.

Price to Sales Ratio (P/S) – Beginning Investor Terms

Price to sales is another metric that has been used to Determine if a stock’s prices is cheap relative to revenue. It is assumed to be better used comparitively within a specific industry. The equation is simple P/S= market cap/revenue for specified period of time such as annually or trailing twelve months (TTM).

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