The Value Investing Podcast with Fexingo: Buffett, Graham, and Long-Term Stock Picking

In this episode of The Value Investing Podcast, Lucas and Luna explore why the cash flow statement is the most reliable document for value investors—not the income statement. They walk through a real example using Cisco in fiscal 2025 to show how cash from operations, capital expenditures, and free cash flow reveal the true earning power of a business. They compare Cisco's free cash flow yield of about 9% against its P/E ratio of roughly 13, and discuss how reinvestment in R&D and acquisitions affects long-term value. The hosts also reference current market data: the S&P 500 at 7,440 and the Russell 2000 at 3,010, and note that Berkshire Hathaway has generated over $40 billion in free cash flow over the last twelve months. A natural donation segment ties the topic of financial clarity to supporting the show. Perfect for anyone who wants to cut through accounting noise and focus on cash.

#ValueInvesting #CashFlowStatement #Cisco #FreeCashFlow #BerkshireHathaway #EarningsQuality #FinancialAnalysis #InvestingPodcast #FexingoBusiness #BusinessPodcast #S&P500 #Russell2000 #WarrenBuffett #CashFromOperations #CapitalExpenditures #Depreciation #StockBuybacks #Acquisitions

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In this episode of The Value Investing Podcast, Lucas and Luna dive into the price-to-earnings ratio, one of the most fundamental yet often misunderstood tools in value investing. They explore how to interpret P/E in the current market environment, using the S&P 500's trailing multiple of 24 as a starting point. Lucas explains the difference between trailing and forward P/E, the pitfalls of comparing P/Es across industries, and how to adjust for cyclical earnings. They also examine Berkshire Hathaway's recent portfolio moves and the P/E of consumer staples stocks. Listeners learn a practical framework for using P/E as a starting point, not a final answer. The episode closes with a discussion of when low P/E stocks are value traps and how to avoid them. Specific examples include JPMorgan and Exxon Mobil, with data anchored to June 29, 2026.

#ValueInvesting #PriceToEarnings #P/E #StockValuation #WarrenBuffett #BerkshireHathaway #S&P500 #JPMorgan #ExxonMobil #CyclicalStocks #ValueTraps #Finance #InvestingStrategy #MarketValuation #Earnings #FexingoBusiness #BusinessPodcast #LongTermInvesting

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In this episode, Lucas and Luna examine a seemingly dry indicator that can reveal hidden distress or deceptive strength in a company's balance sheet: the current ratio. They walk through what it measures, why a high ratio isn't always good, and how to spot when it's being manipulated by inventory build or receivables stretching. Using real market data from late June 2026—including a look at Pfizer's recent slide and the broader rotation into value ETFs like IWD and VTV—they show how current ratio analysis fits into a larger mosaic of financial health. Specific examples include a hypothetical retailer with a current ratio of 2.8 that is actually in trouble, and a comparison of two oil majors where one's ratio masks a looming payables crunch. The hosts also discuss recent Fed commentary and what it means for firms carrying heavy short-term debt. For value investors, the current ratio is not a standalone signal but a red flag or green light when combined with cash conversion cycle and debt maturity profiles.

#CurrentRatio #ValueInvesting #LiquidityAnalysis #Pfizer #IWD #VTV #FedRate #BalanceSheet #FinancialHealth #InventoryManagement #Receivables #Payables #OilMajors #Chevron #ExxonMobil #Business #Finance #FexingoBusiness #BusinessPodcast

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In Episode 79, Lucas and Luna explore return on tangible equity (ROTE) — a metric that strips out goodwill and intangible assets to reveal how much profit a company generates from its hard capital. They anchor the discussion with Berkshire Hathaway's 2025 annual report, where ROTE hit 18.4% versus the reported 13.7% return on equity, and contrast it with JPMorgan Chase's 21% ROTE (reported ROE: 17%). They explain why ROTE matters more in M&A-heavy industries and how it helped value investors avoid overpaying for Pfizer during its 2023-2026 slump. Live market data from June 28, 2026 shows XOM down 1.4% over five days while CVX fell 2.3%, prompting a debate on capital allocation in energy majors. The episode includes a brief, natural donation mention for listeners who find the show valuable.

#ReturnOnTangibleEquity #ROTE #BerkshireHathaway #JPMorganChase #ValueInvesting #IntangibleAssets #Goodwill #Pfizer #ExxonMobil #Chevron #CapitalAllocation #MergersAndAcquisitions #FinancialAnalysis #StockPicking #Buffett #FexingoBusiness #BusinessPodcast #Finance

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In episode 78 of The Value Investing Podcast, Lucas and Luna break down Joel Greenblatt's Magic Formula — a quantitative value strategy that ranks stocks by earnings yield and return on capital. They walk through how it works, where it tends to outperform, and why it's struggling in the current rate environment with the Fed funds rate at 3.63% and the S&P 500 down 1.6% over the past five days. Lucas shares the specific numbers: the formula's backtested compound annual growth rate of over 30% from 1988 to 2004, and why a simple screen can still beat the market. They also discuss a 2024 academic paper showing the strategy's returns have halved since 2005, and whether the Magic Formula still has a place in a portfolio dominated by mega-cap tech. Plus, a brief aside on how listener support keeps the show ad-free. Perfect for investors looking to blend systematic screening with value discipline.

#MagicFormula #JoelGreenblatt #ValueInvesting #EarningsYield #ReturnOnCapital #QuantitativeValue #SystematicInvesting #StockScreening #FactorInvesting #SmallCapValue #LargeCapGrowth #RateEnvironment #FedFunds #Backtesting #AcademicFinance #Finance #FexingoBusiness #BusinessPodcast

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In this episode of The Value Investing Podcast, Lucas and Luna explore the net-net working capital strategy — a deep value approach popularized by Benjamin Graham in the 1930s and still viable in 2026. They examine a real-world example of a small-cap industrial company trading below net current asset value, discuss why most net-nets are micro-caps, and analyze how modern screening tools like the Piotroski F-Score help filter out value traps. The conversation touches on the current Russell 2000 environment, with the index up just 0.1% over the last five days, and the Federal Reserve's 3.63% funds rate — conditions that historically have favored net-net hunters. Lucas and Luna also address why large institutions ignore this strategy and how retail investors can implement it with discipline.

#NetNetWorkingCapital #BenjaminGraham #DeepValue #ValueInvesting #SmallCapStocks #MicroCap #PiotroskiFScore #Russell2000 #IWD #VTV #FexingoBusiness #BusinessPodcast #Finance #Investing #StockPicking #IntrinsicValue #MarginOfSafety #CurrentRatio

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In this episode, Lucas and Luna explore the cash conversion cycle as a value investing signal, anchored to a real-world example: Apple's 2026 CCC of roughly minus 70 days. They explain how a negative cycle means a company gets paid before it pays suppliers, generating float that boosts returns on capital. With the Fed funds rate at 3.63 percent, the value of that float is amplified—every day of negative CCC is effectively an interest-free loan. The hosts walk through the three components: days inventory outstanding, days sales outstanding, and days payables outstanding, using Apple and a contrasting example like Ford to show how CCC varies by industry. They discuss why a long CCC can be a red flag in a high-rate environment, and how value investors can use it to find hidden moats. The episode closes with a look at how tiny improvements in CCC can move the needle for capital allocators like Berkshire Hathaway.

#CashConversionCycle #ValueInvesting #Apple #Ford #BerkshireHathaway #WorkingCapital #FreeCashFlow #ReturnOnCapital #InventoryManagement #DaysSalesOutstanding #DaysPayablesOutstanding #Float #FedFundsRate #InterestRates #Finance #FexingoBusiness #BusinessPodcast #InvestingPodcast

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Lucas and Luna dive into free cash flow yield as a value investing metric, using real-time data from June 26, 2026—including Pfizer's 3.1% decline and Berkshire Hathaway's 2% gain—to show why FCF yield matters more than P/E in a rate-hike environment. They break down how to calculate it, what it signals about a company's true earnings power, and why it's especially relevant when the Fed is hinting at tightening. A practical episode for long-term stock pickers.

#FreeCashFlowYield #ValueInvesting #BerkshireHathaway #Pfizer #FedRateHike #IntrinsicValue #StockPicking #CashFlow #EarningsQuality #LongTermInvesting #FCFYield #MarketValuation #InvestingStrategy #Finance #Business #FexingoBusiness #BusinessPodcast #ValueInvestingPodcast

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In episode 74 of The Value Investing Podcast, Lucas and Luna explore the return on invested capital, or ROIC — a metric that tells you how efficiently a business turns its capital into profit. Using JPMorgan as a concrete case, Lucas walks through why a bank's ROIC of roughly 14 percent signals a durable competitive advantage, and why a company like Pfizer, with a declining ROIC near 8 percent, may be destroying value despite a low price-to-book ratio. The hosts discuss how ROIC differs from return on equity, why high ROIC companies often command premium valuations, and how to use the metric to separate value traps from genuine compounders. Backed by current data from June 2026 — including JPMorgan's recent executive changes and Pfizer's 6 percent weekly drop — this episode gives listeners a practical framework for evaluating capital efficiency in any stock they research.

#ReturnOnInvestedCapital #ROIC #ValueInvesting #JPMorgan #Pfizer #CapitalEfficiency #CompetitiveAdvantage #InvestingFramework #BusinessPodcast #Finance #FexingoBusiness #Fexingo #LongTermInvesting #StockAnalysis #Moat #EarningsQuality #LucasAndLuna #PodcastEpisode

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Lucas and Luna explore why the current ratio matters more than ever for value investors in mid-2026. With the Fed funds rate holding at 3.63% and the S&P 500 down 1.9% over the past week, short-term liquidity has become a critical filter. Lucas walks through a real example comparing two large-cap stocks: one with a current ratio above 2.0 and one below 1.0, showing how the metric reveals hidden risk and opportunity. They also discuss how rising bond ETF flows are pulling capital away from equities, making it essential to identify companies that can weather a tighter liquidity environment. The episode closes with a look at how value investors can combine the current ratio with the quick ratio and cash conversion cycle for a more complete picture. No abstract theory—just a practical tool for scanning the market today.

#CurrentRatio #ValueInvesting #LiquidityAnalysis #FinancialRatios #StockPicking #BenjaminGraham #ShortTermSolvency #WorkingCapital #IWD #VTV #BondETF #FedFundsRate #EarningsSeason #CashConversionCycle #QuickRatio #DefensiveStocks #FexingoBusiness #BusinessPodcast

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