Portfolio Times

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, but in my circles, it’s often translated as "Earnings Before All The Important Stuff. In the world of finance, EBITDA is often used as a shortcut to see how "profitable" a company is at its core. Investing in a company based only on EBITDA is like buying a vintage Aston Martin because it looks fast, while ignoring the fact that the engine is held together with prayer and duct tape. Never look at EBITDA in a vacuum. Instead, look at the (EBITDA - Capex) / Interest Expense ratio.A company with high EBITDA but even higher Capex is just a treadmill—impressive movement, but you aren't actually going anywhere. Always check if the "Earnings" are actually turning into "Cash." Cheers, Arthur.

a Dividend is a portion of a company's profit that it decides to share with its owners (that’s you, if you own the shares). It’s essentially a "thank you" for trusting them with your capital. But beware the "Yield Trap." High yields can be a sign of a sinking ship or a risky business. A very high dividend yield (let's say, 10% or more) often looks attractive, but it’s frequently a sign of a company in trouble. Quality over quantity, alwaysss. Remember, Yield = Dividend / Stock Price. If a pub is giving away free pints while every other pub is charging £6, check the expiration date on the keg. Advanced Tip: Look at Free Cash Flow (FCF) Payout Ratio instead of just earnings. Earnings can be manipulated by accountants; cash is harder to hide.

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