Investing For Value

Tips E-21: A 1-minute summary of my fundamental analysis of OSI Systems Inc. (NASDAQ: OSIS)      Investment Thesis OSI Systems benefit from proven execution, secular growth exposure, and rising operating leverage, which have driven steady improvements in profitability and returns. However, optimistic assumptions are already embedded in the share price. Main Business OSI Systems operates as an integrated solutions provider across security, healthcare, and electronics manufacturing markets. Its core businesses include security screening systems, patient monitoring devices, and specialized electronics. Over the past decade, OSI has shifted from a product-centric model toward delivering integrated, mission-critical systems, with security now contributing over two-thirds of total revenue. Growth Revenue growth has consistently outpaced end-market expansion, supported by acquisitions, organic demand, and global diversification. From 2016 to 2025, revenue grew at an 8.2% CAG...

Value Investing Case Study 118-1: A fundamental analysis of SD Guthrie Berhad to assess whether it is a quality cyclical business.    SD Guthrie Berhad (SDG) is one of the world’s largest palm oil producers, but size alone does not make a great investment. At first glance, the business looks solid.  SDG controls a vast, long-life plantation landbank across multiple countries, complemented by downstream processing that helps stabilise earnings. It has invested heavily in sustainability, proprietary planting material, and precision agriculture.  But the deeper story is more nuanced. Revenue growth since listing has been impressive, yet much of it coincided with commodity price upswings, not structural expansion.  A closer look at unit economics revealed that costs are sticky, while selling prices fluctuate sharply. Small changes in pricing translate into large swings in profits. While SDG has improved cost discipline and reduced fixed costs relative to r...

Tips E-20: A 1-minute summary of my fundamental analysis of Cogent Communications Holdings, Inc. (NASDAQ: CCOI)   Investment Thesis The Sprint wireline acquisition materially weakened near-term margins and returns, masking Cogent’s historically strong, cash-generative network economics. While management has a credible integration plan to restore profitability, the market already prices in much of this recovery. Main Business Cogent is a facilities-based global IP network operator with a strong on-net model and scalable backbone infrastructure. The company delivers IP transit, VPN, and bandwidth services across 56 countries, with North America contributing about 86% of revenue.  Growth Revenue growth was historically steady and acquisition-driven recently. From 2015–2022, Cogent grew organically at a 5.5% CAGR before revenue jumped 53% in 2023 due to the Sprint acquisition. However, 2024 growth slowed to 7%, and early 2025 showed contraction. Profitability Sprint ...

This is Chapter 3 of my book Mastering Value Investing: Practical Strategies for Real-World Results . Go there for links to the other chapters. Most investors think risk means volatility. They are wrong. The real danger in investing is not price swings – it is permanent capital loss. And once your capital is gone, compounding stops forever. In this chapter, I challenge one of the most common myths in investing: that higher returns come from taking more risk. In reality, the investors who survive and compound wealth over decades are those who focus on what can destroy them first. You will learn why market volatility is not the enemy - but leverage, concentration, weak balance sheets, and emotional decisions are. Price fluctuations create opportunities; bad businesses, excessive debt, and forced selling create disasters. Intelligence does not protect you from risk. Process does. You will also see why writing down your investment process matters more than finding the next “g...

Tips E-19: A 1-minute summary of my fundamental analysis of Willdan Group Inc. (NASDAQ: WLDN)            Investment Thesis The company’s post-2022 shift toward integrated energy services has driven organic growth, improving margins and cash flow. However, a long history of weak returns, volatile profitability, and capital inefficiency tempers confidence. Even under optimistic assumptions, there is no margin of safety. Main Business Willdan has transformed into a predominantly energy-focused services provider. The business now operates mainly through its Energy segment, which contributed about 84% of 2024 revenue, serving U.S. utilities and public agencies. Growth Revenue growth has been strong historically and is increasingly driven by organic demand rather than acquisitions. Profitability While PAT grew at a 20.4% CAGR over the decade, profits were highly volatile and only recovered meaningfully after 2022. Gross and contribution margins show...