Mahad
- Joined 30 Aug 2024
- 15 comments
- 5 posts
Biography
https://mahadahmed185.substack...
I entered the world of investing during the COVID-19 pandemic, when all I saw were flashing green signs and a booming market. While many of my peers were drawn to speculative trends like Bitcoin or GameStop, my contrarian nature and long-standing passion for research led me to ask a simple yet profound question: 'What is the true value of a company?' This curiosity set me on a journey to explore value investing and fundamentally-driven strategies.What started as a personal inquiry into the markets quickly snowballed into a deep passion, and I’ve been hooked ever since.
Investment strategy
I prioritize investing in companies that are intrinsically undervalued, with a margin of safety established through Discounted Cash Flow (DCF) analysis. My focus is on companies with positive cash flows, ensuring they can weather market fluctuations and sustain long-term value.
I prefer companies that actively buy back shares or, at the very least, avoid diluting shareholder equity. Protecting the value of existing shareholders is key to long-term growth and stability.
A strong balance sheet is essential. I look for companies with steady or rising cash flows and robust solvency/liquidity metrics, such as high interest cover, current ratio, and low net debt-to-equity ratios, ensuring the company is well-positioned to navigate economic cycles.
Companies with a steady or expanding economic moat—evidenced by rising margins, Return on Equity (ROE), and competitive differentiation—are core to my strategy. A sustainable moat indicates long-term profitability and resilience.
I favor businesses that demonstrate consistent, preferably rising, revenue and net profit. Stability in financial performance is a crucial aspect of identifying quality investments with reliable growth potential.