Module 5 of 5 in Practical stock research
Case studies from history
Verified historical cases of governance failure, lender collapse, valuation excess and durable businesses, studied with what was known at the time.
5 lessons in this module. Progress is saved in your browser as you go.
Case studies show how the ideas in earlier paths play out in real companies and markets. Each case states its period and sources, separates what was knowable at the time from what was learned later, and is studied for its lessons, not as a recommendation. The selection deliberately includes failures and mistakes alongside successes.
By the end of this module you should be able to
- Identify the warning signs that were available before major governance and accounting failures.
- Explain how valuation excess and leverage contributed to historical market losses.
- Separate information available at the time from hindsight when studying a historical case.
Lessons in order
- Case study: an accounting fraud (Satyam, 2009)
- Case study: a lender in crisis (Yes Bank, 2018-2020)
- Case study: a valuation bubble (technology shares, 1999-2002)
- Case study: a debt-funded group in crisis (IL&FS, 2018)
- Case study: how a durable business compounds (a hypothetical consumer company)
- Module test: Case studies from history
Module test
10 questions, chosen at random from a bank of 30 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- Identifying red flags in practice: The case applies the red-flag method explained there.
- Analysing banks and lenders: The case applies the bank analysis explained there.
- Reverse DCF: The case uses a reverse DCF to show what bubble prices implied.
- Interest coverage: The case shows what happens when cash earnings cannot cover debt payments.
- Minority shareholders, holding companies and conglomerates: Group complexity was central to the crisis.
- Returns on incremental capital: Compounding depends on the returns earned on reinvested capital, explained there.
- Competitive advantages and their limits: High returns last only if a competitive advantage protects them.