Topic
Methodology
How RTEP, fair value, and quality scores work, with the math.
Sep 9, 2026 · 6 min read
The classic value screen returns 49 names. 21 are financials
P/E under 15, ROE over 15%, low debt. Run it on 975 companies and 49 survive. Nearly half are financials, and it discards most of the best businesses.
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Sep 9, 2026 · 6 min read
Home Depot earned 110% on equity last year. Nobody earns 110%
Return on equity rises when a company buys back stock, and keeps rising after the equity is gone. Return on invested capital cannot be moved that way.
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Sep 4, 2026 · 7 min read
A low P/E is not a discount. It is a forecast, and often a correct one
Screen for the cheapest companies and you get businesses the market expects to earn less next year. What breaks when the multiple is your only filter.
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Sep 3, 2026 · 8 min read
20.2% a year for thirteen years. Here is why you should not believe it yet
Ahead in 81 of 103 rolling five-year windows. Behind in seven of the thirteen calendar years. The stretch we sealed off went against us. Same argument.
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