Investing For Value

Tips E-24: A 1-minute summary of my fundamental analysis of TTM Technologies Inc. (NASDAQ: TTMI) Investment Thesis TTMI now focuses on advanced PCBs and mission-critical systems rather than commoditized consumer electronics. Despite this strategic progress, persistent cost-control issues and subpar returns on capital mean the transformation has not translated into sustainable shareholder value. Main Business The company products are used in aerospace and defense platforms, data center infrastructure, and automotive electronics. These markets feature higher reliability requirements and longer product cycles, supporting differentiation but demanding disciplined execution and cost management. Growth From 2015 to 2024, revenue grew only about 1.7% CAGR as TTMI divested consumer-facing units and shut down commoditized operations. Underlying demand improved, evidenced by 9.4% growth in 2024 when no divestitures occurred, suggesting better organic potential going forward. Profitabili...

This is Chapter 5 of my book Mastering Value Investing: Practical Strategies for Real-World Results . Go there for links to the other chapters. Most investors think diversification reduces risk. They are only half right. If diversification were the magic answer, owning 100 stocks would make you rich and safe. But in reality, many diversified portfolios quietly underperform - not because investors took too much risk, but because they misunderstood what risk actually is. This chapter challenges the comfortable myths most investors rely on. Risk is not volatility. It is not short-term price swings. Risk is permanent capital loss - and portfolio construction is one of the most underappreciated tools for preventing it. Inside this analysis, you will see why portfolio construction is not an afterthought, but a core risk-management system. Not through formulae or academic theory, but through practical decisions every investor must make. You will also see real-world examples that ...

Tips E-23: A 1-minute summary of my fundamental analysis of STMicroelectronics N.V. (NYSE: STM)      Investment Thesis STMicroelectronics operates in structurally attractive markets such as electrification, industrial automation, and edge AI, where its vertical integration and long customer design cycles support durable returns. It is a fundamentally strong semiconductor leader offering a rare combination of moat strength and valuation support.  Main Business STM’s vertically integrated model enables reliability, cost control, and customization, particularly in automotive MCUs, power semiconductors, and MEMS, where switching costs and qualification barriers are high. Growth Long-term growth is primarily organic, supported by secular demand rather than acquisition-driven expansion. From 2015 to 2024, STM grew revenue at about 7.5% CAGR. Profitability Profit growth has been amplified by margin expansion and operating leverage rather than purely higher revenues....

Value Investing Case Study 119-1: A fundamental analysis of Top Glove Corporation Berhad, where I separated the pandemic distortion from sustainable economics.     Top Glove Corporation Berhad delivered one of the most spectacular profit surges in corporate history during COVID-19. As the world’s largest glove manufacturer, it sat at the epicentre of a once-in-a-lifetime demand shock — and the numbers exploded. But its performance deteriorated post-pandemic. The reason lies in unit economics, not just demand drop per se. Pandemic-era capacity expansion permanently lifted the asset base and fixed-cost structure, quietly raising the company’s breakeven level. In plain terms: Top Glove now needs much more volume just to stand still. Margins that once looked bulletproof remain below pre-pandemic norms. Returns on capital have lagged not only history, but peers.The business did not lose relevance; it inherited a heavier economic engine. Peer comparisons reveal so...

Tips E-22: A 1-minute summary of my fundamental analysis of Huron Consulting Group Inc. (NASDAQ: HURN)       Investment Thesis Over the past decade, Huron Consulting Group improved margins, returns, and business mix, especially in healthcare and education. Huron has become a leaner, more capital-efficient consulting business, but valuation leaves insufficient margin of safety.  Main Business Huron operates an integrated consulting, managed services, and digital solutions model anchored in regulated end markets. Healthcare (~50%) and education (~32%) dominate, supported by digital platforms in analytics, automation, and enterprise systems that deepen client embedment. Growth From 2015–2024, revenue grew at about 8.7% CAGR, with an estimated two-thirds attributable to acquisitions. While Huron’s core markets grow modestly, acquisitions have been the primary lever to scale capabilities, Profitability Profit growth reflects revenue scale and cost disciplin...