The Fundamental Investing Institute creates educational content for business owners, aspiring entrepreneurs, and investors. We provide instruction in business strategy, financial management, and financial analysis.
We define fundamental investing as a capital allocation philosophy emphasizing essential business factors such as cash flows, asset values, and financing structure. These factors are central to prudent analysis, whether an investor buys a small business, commercial real estate, or shares in a listed company.
Our content derives from several core beliefs which we have gained over many years of investing in public and private markets.
Our Core Beliefs
Learning From History
A thorough understanding of history can often help limit the number of errors a business operator or investor may make. As important as it is for us to learn from our mistakes, it is far less costly to learn from others’ mistakes. Many of the posts on this site are historical essays. We hope our readers derive as much value from studying this material as we have.
Recognizing Cognitive Biases
Cognitive biases are the mental filters we all have which can keep us from making rational decisions. Such biases lead even the savviest investors to make costly financial mistakes. We can never eliminate behavioral errors, but we can become more aware of our biases and attempt to mitigate their impact.
Studying a Variety of Subjects
Charlie Munger, Vice Chairman of Berkshire Hathaway, used the term “latticework of mental models” in a speech at USC in 1994. According to Munger, integrating ideas from various disciplines will help investors avoid being a “one-legged man in an ass-kicking contest.” We concur.
Analyzing a Listed Stock in the Same Manner as Analyzing an Entire Business
Investors are better served focusing on underlying business fundamentals than stock prices.
Studying Great Investors and Entrepreneurs
Such business case studies offer invaluable lessons for investors and business professionals.
Our Team
Matthew DePaola, MBA
Christopher DePaola, JD