Investing For Value

Tips E-17: A 1-minute summary of my fundamental analysis of Itron Inc. (NASDAQ: ITRI)   Investment Thesis Over the past decade, the company shifted from hardware-centric metering to networked and software-driven solutions, unlocking operating leverage and strong EPS growth. While fundamentals have clearly improved and financial risk is low, the stock price already reflects optimistic assumptions about future growth and margins. Main Business Itron provides smart meters, communication networks, and analytics software that enable utilities to manage energy and water more efficiently. The company is now best viewed as a grid technology platform rather than a pure hardware supplier, serving primarily North American utilities. Growth Despite operating in a structurally growing smart grid market, Itron’s revenue growth has remained modest over the past decade. From 2015 to 2024, revenue grew at just 2.9% CAGR. Profitability Itron converted low revenue growth into excep...

Value Investing Case Study 116-1: A fundamental analysis of YTL Corporation Bhd, where I look at its quite transformation. It is not just growing bigger, but also growing better.   

This is Chapter 1 of my book Mastering Value Investing: Practical Strategies for Real-World Results Most people believe not investing is the safest option. I used to think so too. In this chapter, I explain why doing nothing is not neutral - it is an active decision with consequences. Cash may feel safe, but over time it guarantees a loss in real terms. Investing, by contrast, is not about speculation or quick wins. It is about putting capital into productive assets that grow faster than inflation. I also explain why I chose stocks over other asset classes. Not because they are risk-free, but because ownership in strong businesses has historically been the most effective way to grow wealth over long periods. When you buy a stock, you are not trading a ticker. You are buying a slice of a business. This chapter also explores different investing styles - speculation, index investing, factor investing, and business ownership - and why most investors fail to clearly define which ga...

This is an introduction to my book Mastering Value Investing: Practical Strategies for Real-World Results  

Tips E-16: A 1-minute summary of my fundamental analysis of TAT Technologies Ltd. (NASDAQ: TATT) Investment Thesis After years of modest progress, the company delivered sharp revenue and profit improvements from 2023 onwards. However, persistent underperformance versus peers, an unsustainably high reinvestment rate, and zero margin of safety at current prices make it unattractive for long-term value investors. Main Business TAT Technologies provides aerospace thermal management, power systems, and MRO services across OEM and aftermarket segments. Growth From 2013 to 2022, revenue grew at a modest pace, but growth surged to 35% in 2023 and 34% in 2024. With no acquisitions since 2015, this growth appears organic and supported by expanding aerospace thermal and MRO markets.  Profitability Gross margins improved alongside declining SGA and fixed cost ratios, lifting operating profits and returns to multi-year highs. These improvements appear execution-driven and repeata...