Value Spotlight (Andrew Sather) @ValueSpotlight Twitter profile

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Calculating WACC and ROIC (Tutorial): Is value created or destroyed?

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Calculate ROIC on a Complex Balance Sheet (Tutorial): $V

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Calculating ROIC Contest (Tutorial): $COST in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

How to Calculate ROIC: What's a Good ROIC? A Complete, Animated Guide (pt.2)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

The Next Step: ROIC to estimate future Growth Rate (Tutorial): $V

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

How to Calculate ROIC: A Complete, Animated Guide (pt.1)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Learn a Business using ROIC (Tutorial): $AAPL in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

30 days

NVIDIA's insane ROIC (Tutorial) $NVDA

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Animated Guide: Warren Buffett's Thoughts on ROIC, WACC

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Calculating ROIC with Negative Equity (Tutorial): $LOW in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

1 month

Calculating ROIC Contest (Tutorial): $GOOGL in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Using ROIC to find Yellow Flags (Tutorial):

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Calculate ROIC on an EVEN MORE Complex Balance Sheet (Tutorial): $NEE

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Value Spotlight (Andrew Sather)

@ValueSpotlight

28 days

Why did Starbucks' ROIC Decline? (Tutorial for $SBUX) Operating Leases and Historical ROIC

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

The Importance of Operating Lease Assets in ROIC (Tutorial): $TGT v $DKS

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Calculating ROIC Contest (Tutorial): $UBER in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

A full list of all stocks in the S&P 500 with a ROE > 50% at this moment. I own 2 of these. Which ultra-high ROE stocks do you own?

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Value Spotlight (Andrew Sather)

@ValueSpotlight

1 month

Calculating WACC and ROIC (Tutorial): Is value created or destroyed? $AMT

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Value Spotlight (Andrew Sather)

@ValueSpotlight

23 days

ROIC to measure Capital Allocation? Why you should be careful (Tutorial)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Operating vs Financing Invested Capital (Tutorial): $COST in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Animated Guide: How a Company's ROIC Tree Shows Its Growth Drivers and Capital Efficiency

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Negative Invested Capital Calculating ROIC for $ABNB (Tutorial)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

WACC vs ROIC: A Complete, Animated Guide

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Common misapplication of ROIC (Tutorial): Don't make this mistake!

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Is Tesla a capital efficient business? (Tutorial): $TSLA in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

1 month

High non-interest bearing liabilities in Invested Capital for ROIC (Tutorial): $LLY

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

1. Use ROE for the financial industry 2. Use ROIC to evaluate capital allocation, or operational efficiency of a business 3. ROA = like ROE but impact of leverage ignored 4. ROCE = includes cash

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Calculating ROIC Contest (Tutorial): $GIS in <90 seconds

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Include Provisions in Invested Capital for ROIC? (Tutorial) Request from @TheFinanceLad : Whitbread $WTBDY

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Value Spotlight (Andrew Sather)

@ValueSpotlight

27 days

Animated Guide: Return on Equity

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Value Spotlight (Andrew Sather)

@ValueSpotlight

1 month

How to Deal with Lumpy ROIC (Tutorial) - Simple Solutions $PFE

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Value Spotlight (Andrew Sather)

@ValueSpotlight

20 days

Animated Guide: How to Calculate Free Cash Flow

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 years

Comprehensive List of the Best Investing Books for Beginners From our @IntrinValue latest podcast episode (excuse the typos): The Intelligent Investor What Works on Wall Street Beating the Street One Up on Wall Street and others...

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Value Spotlight (Andrew Sather)

@ValueSpotlight

1 month

The Next Step: ROIC to estimate future Growth Rate (Tutorial): $COST

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Value Spotlight (Andrew Sather)

@ValueSpotlight

9 days

(Tutorial): ROIC and acquisitions- Questions to ask yourself when running an ROIC for the 1st time $HEI

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 months

Moat for $DHR in 200 words or less:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

21 days

Shortcut for Calculating ROIC with a Complex Balance Sheet (Tutorial) $MA

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Value Spotlight (Andrew Sather)

@ValueSpotlight

25 days

2 Ways to Check your WACC vs ROIC Calculations (Tutorial) $JACK

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 months

Green Flags for ROIC (Tutorial): $TXRH

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Value Spotlight (Andrew Sather)

@ValueSpotlight

16 days

(Tutorial) Tricky, tricky Operating Leases and their impact to Invested Capital and ROIC $MSFT

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

@Quartr_App @RampCapitalLLC @TaylorLewan77 @zyn_addict @junkbondanalyst @stack__sats @WayneJetskiii @litcapital @yo @dalibali2 That slide design is so convincing, I almost went to go look for it in an earnings call 😅

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

Analyzing $GOOGL using my value checklist: 1. Why is this stock promising? YouTube, YouTube TV, and Google Cloud have massive TAMs left to take still. 2. Company's financial history? Revenues 10y CAGR = +19% OpM = 25%+

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

List of S&P 500 stocks with the highest dividend growth since 2019: Source =

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

$COST's moat explained in <200 words:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

18 days

ROIC Tutorial: Are airlines still capital inefficient? How to check capital intensity w/ Invested Capital ($DAL)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Stocks that look expensive, but are cheap. When capex = less maintenance capex, more growth capex. Examples: GOOGL lately, AMZN in the 2010's, WMT in the 90's

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

ROCE vs ROIC: Tough nuances to explain but I'll do my best... 1—ROIC ignores cash; ROCE doesn’t 2—ROIC can be manipulated through special large liabilities 3—ROCE ignores favorable tax treatment from geographical revenue mix

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

What's your favorite Income Statement checklist item? Mine's probably Operating Margin vs peers.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

14 days

Tutorial: Calculate Invested Capital the "Popular" Way (the financing approach) $COST

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

Full list of "high ROE" stocks w/ negative equity (S&P500): All have great ROICs. Source:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

11 days

Tutorial: Stock-based compensation and Growth estimates from ROIC $CRM

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

Warren Buffett's 4 Financial Tenants 1. Focus on ROE, not EPS 2. Calculate "owner earnings" 3. Look for high profit margins 4. One dollar of market value test (on retained earnings) Source: The Warren Buffett Way by Robert Hagstrom

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

Who are your favorite capital allocators? I'll go first: Warren Buffett Satya Nadella Tim Cook C.C. Wei ($TSM)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 years

Can we recognize those who continued to provide essential services despite bringing in paychecks that were LESS than weekly unemployment...

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

I love companies w/ great ROIIC. In other words, Improving ROIC's. A few examples right now to consider (from my portfolio): $TXRH, $MCK, $SBUX, $AAPL

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Value Spotlight (Andrew Sather)

@ValueSpotlight

1 year

Facts $COST

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Q: How to analyze a retailer? A: Analyze how it manages its inventory. How? A: Cash Conversion Cycle is a great one.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Calculating Degree of Operating Leverage (DoL) Challenge $MSFT in <60 seconds Tutorial:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

Estimating intrinsic value comes down to cash flow. Each piece, starting from Revenue, matters. I use FCFE / share for my valuation work. What do you use?

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

If you look at FCF, and adjust for growth capex, it can help you find value opportunities. How? B/c when a company is heavily reinvesting in their business, earnings will be suppressed from high D&A but this gets added back to Cash from Op. Historical examples: $AMZN, $WMT

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 years

These books on the top shelf for a reason #graham #malkiel #theintelligentinvestor #arandomwalkdownwallstreet

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

30% of my portfolio in these 3 industries: Hotels, Restaurants and Leisure Household Durables Specialized REITS Anybody else have similar exposures? Any guesses to my stocks in there? (Dave not allowed to guess 😆)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 years

Revenue of $45.3B for the quarter, +22% YOY. Just another day at the office for $MSFT. 🥱 Oh yeah and $10B returned to shareholders. 🥱🤑

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 months

Quick facts about $SBUX: 25 Trailing P/E 10% Avg Sales Growth (10y) 23% ROIC - 5Y Average My projected FCFE/share growth rate for the next 10y= 9.5% - 15%+

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

My portfolio today. Biggest position is $PHM. How about yours?

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

2 MUST know profitability ratios. ROIC vs ROCE - ROIC measures operating efficiency compared to capital efficiency - ROCE asses overall captial efficiency, including debt. My last stock pick (May'24): ROIC = 32% ROCE = 31% Yours?

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 years

@RobertGreene Superior results requires superior actions

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 years

If Microsoft hits $305 today they will have gained over $60B in market cap in one day, which is higher than 70%+ of S&P 500 companies' total market cap. What. $MSFT

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

Your favorites? Mine are Capital Returns, Beating the Street, Richer, Wiser, Happier, 100 Baggers, Poor Charlie's Almanack, and obv... The Intelligent Investor h/t @QCompounding

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 years

@StockCats Too bad my investing timeline is 600 years

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

The homebuilders continue to be share cannibals.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

Analyzing $BLDR using my value checklist: 1. Why is this stock promising? Supply and demand of new homes finally seems in balance after years of undersupply 2. Company's financial history? Revenues 10y CAGR = +35% OpM = 16%+

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 years

Probably one of the best we've ever done. A must-listen for understanding valuation and interest rates.

The Investing for Beginners Podcast

@IFB_podcast

3 years

New episode is live! You can find it on your favorite podcast player or website. Today's show discusses some of our thoughts on why some of the big "growth" names are tanking, and how to think about future investments.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 years

The first rule of compounding: Never interrupt it unnecessarily.” -- Charlie Munger Easy to say, tough to implement. We all need reminders of this, all of the time.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

Best types of moats. Any others? 1. Scale economies shared $COST, $MSFT Azure 2. Barriers from scale $MCK, $CCI 3. Premium pricing power $AAPL, $SBUX

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

What do I look for first when I analyze an income statement? Revenue growth, and Revenue per share growth. As I'm in the accumulation phase of investing, almost every business w/ subpar revenue metrics is a hard pass.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

4 important metrics explained simply ROIC How efficient the business operations are. Interest Coverage Ratio How much of current Operating Profits can be used to service interest payments on debt. Net Debt to EBITDA Solvency situation. Current Ratio Liquidity situation.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

2 years

@BradoCapital

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 years

Who you should follow on Twitter for investing: Macro+ comedy: @michaelbatnick @awealthofcs Picking stocks: @jposhaughnessy Personal finance: @ramit @CollegeInvestin Investing in your mind: @patrick_oshag @PrestonPysh Top-shelf market memes: @Wu_Tang_Finance @StockCats

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

When first seriously considering semiconductor stocks, I was really surprised at how strong their balance sheets are. Case-in-point: Manufacturing leader $TSM

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

Which lesson is most important to you? To me, it is the idea of paying for a stock that's trading below its intrinsic value. So much is subjective about a company, but you can't argue against its historical financial performance (assuming it's audited well).

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

Visa's 3 revenue types. Data Processing Revenue (+13.5% CAGR) overtook Service Revenue (+10.6% CAGR) in 2018 and has not looked back. $V

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

Moat for $DKS in 200 words or less:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

6 months

My biggest investing mistake ever? Not letting my #1 winner continue to run, semiconductor equipment stock $LRCX. Up +300%+ since I sold at $231.11 in October 2019.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 years

And books, YouTube videos, podcast episodes… The struggle is real.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 months

Moat for $BLDR in 200 words or less:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

10 months

What a super cool feature. Great work @finchat_io team @BradoCapital @CompassInvStrat . My portfolio today:

Chris Mayer

@chriswmayer

10 months

Playing around with portfolio stats using @finchat_io - a snapshot of the current portfolio: high growth, strong returns, low debt and high reinvestment --

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

What's saved me from "high FCF", big stock crash companies? Digging into each component of FCF. Especially stock-based compensation. If % of SBC to CFO is too high, you might want to reconsider your investment.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

7 months

My Investing Checklist for every stock pick

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Analyzing $TXRH using my value checklist: 1. Why is this stock promising? Great geographical tailwinds, industry-leading growth, optionality with Bubba's and Jagger's. 2. Company's financial history? Revenues 10y CAGR = +12.7% 5Y ROIC = 12%

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

Few companies are structurally advantaged for easy GDP/GDP+ organic growth. $GOOGL is one. Their moat explained:

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

Remember that earnings are an opinion, but cash is a fact.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

My favorite insight from the book: That spinoffs can be undervalued simply because parent co shareholders don't want them or institutional investors can't be bothered with them. How many Joel Greenblatt fans out there? 🙋‍♂️

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 years

Great example of how to start learning about investing!

Nick 🌺

@HowardYNWA

4 years

@ValueTrapBlog found your podcast this week and I’ve probably listened to 20 episodes already. Thanks for the book suggestions... I’m excited to learn.

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Value Spotlight (Andrew Sather)

@ValueSpotlight

3 months

List of S&P 500 stocks with highest shareholder yield today: Source =

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

Give me one lesson I wish I knew as a beginner investor for $500, Alex. Super important especially for cyclical businesses (housing, semiconductors, commodities, banks)

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

Understanding accounting, what Warren Buffett dubbed "the language of business" helps you discern between good & bad business models. Easy to make a company sound good. Better to see the evidence. Another resource I'd recommend: Financial Statements by Thomas Ittelson

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

Biggest share cannibals in my portfolio, last 12 q's. $BLDR, $DKS, $PHM, $MCK A few obvious ones, a few not so obvious. What else has been out there lately?

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Value Spotlight (Andrew Sather)

@ValueSpotlight

4 months

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Value Spotlight (Andrew Sather)

@ValueSpotlight

5 months

Favorite name for each type of moat? (I own 4 of these). Network Effects - $META Switching Costs - $AAPL Intangible Assets - $SBUX Cost Advantages - $COST Scale Advantages - $GOOGL Just recorded a pod episode about this recently. Stay tuned 👀

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