Fixed Assets to Debt Relationship

Every business owner, especially young entrepreneurs, must understand how long-term debt is used to finance the purchase of fixed assets. It is a basic principle especially for start-ups. There is a relationship that exists between the two. If created correctly, profitability is enhanced and cash flow is maximized. But most business owners lack the knowledge about the fixed assets to debt relationship.

This article explains three important rules that if broken will overwhelm operations and working capital, in most cases it will doom the business to failure.

RULE #1 – Proper leverage for the respective asset;
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Principles of Value Investing

Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

Value investing is by far the absolute best method to use with your portfolio. The only method that can beat value investing is 'Speculation'. And honestly, speculation is synonymous with gambling. Look at this site's Value Investment Fund results in comparison to eight major indices.

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Value Investment Fund's Three and Half Years Running Average Annual Return = 22.03% Thru 03/31/2023

This site's Value Investment Fund has outperformed all major indices since inception three and a quarter years ago. This Fund's average annual pre-tax return is 22.03% (thru 03/31/23). This graph depicts the superior advantage of value investing over all major indices.

This exceptional return on capital investment demonstrates unequivocally how the principles of value investing simply outperform all other forms of investing. Only sheer coincidence with one's picks, referred to as 'luck', can beat value investing. All activity is recorded in real-time on this website.

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