Last week, Phil and Danielle talked about one of the two extremes of Warren Buffett’s Investing strategies: Net-Nets. This week, the investing duo discusses the other extreme: Options. 

As the market started booming again post World War II, Buffett found the Net-Net strategy to be extremely difficult, so he transitioned to trading options – a riskier, but higher return strategy.

Tune in as Phil and Danielle explain everything you need to know about options trading, why it should not be considered as investing, and what is in between both of Buffett’s two investing extremes.

To learn more about how to successfully invest as a beginner, download a copy of Phil’s Complete Guide to Investing for FREE here: https://bit.ly/3oSjWaK 

Topics discussed in this podcast:

The Net-Net Investment Strategy & History

Options Trading

Investing Extremes

Put Option

Call Option

Meme Stocks


Additional resources discussed in this podcast:

The Net-Net Strategy Explained

The Complete Guide to Investing for Beginners

 
For show notes and more information visit www.investedpodcast.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices

348- Betting with Options

Phil Town is a hedge fund manager and author of 3 New York Times best-selling investment books, Invested, Rule #1, and Payback Time. On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week. Subscribe and leave a review. Questions? Email questions@investedpodcast.com.

Business

Investing

Careers

Management & Marketing

Business News

Shopping

Learn more about your ad choices. Visit megaphone.fm/adchoices

469- FROM THE VAULT: What Nike’s New Campaign Means for Their Stock

The world’s best investing minds have made fortunes that most people can barely dream of in their lifetimes, but having a successful portfolio doesn’t require the highest IQ, an office full of analysts, or access to top secret information.

Understanding your own strengths and being able to identify the fields that are of interest to you are crucial components of a fruitful investing practice, and maintaining a limited scope in your research and analysis can help you maintain focus and avoid wasting energy on superfluous data.

This week, Phil and Danielle take a look (and listen) to the latest Berkshire Hathaway shareholder meeting and discuss some key takeaways from one of value investing’s most important financial summits.

If you’d like to evaluate your investing knowledge, discover areas for improvement, and enhance your investment strategies, click here for the Rule #1 Investing IQ Quiz: https://bit.ly/3Faf7ks

Topics Discussed:

2024 Berkshire Hathaway Shareholder Meeting

Market indices

The importance of mentorship

Investing in your interests

Circle of competence


Resources Discussed:

The Intelligent Investor

Moody’s Transportation Manual

Value Line


Learn more about your ad choices. Visit megaphone.fm/adchoices

468- Ten Billion

InvestED Episode #467: More Ulta Issues

As investors the world over grapple with the rapidly changing financial landscape, where ETFs, meme stocks, and cryptocurrencies are all carving out their own space in a well-established ecosystem, how do value investors gauge the future of a business?

While some might see these changes as a massive disruption to the market at large, there are others who, from a Buffett perspective, see the same cycle of boom/bust/reset playing out as it’s done so many times in the past.

This week, Phil and Danielle continue from their jumping off point of the cosmetics industry to tell us why the difference between growth and value stocks isn’t nearly as significant as establishing the value of the business in order to plan for the future.

For some great tips on what to do (and what not to do) when building your value investing portfolio, click here for your free copy of 10 Do’s and Don’ts of Successful Investing:  https://bit.ly/3XyEDbD

Topics Discussed:

P/E ratio

Wall Street vs value investing future outlook

Growth stocks

Intrinsic value

ETFs


Resources Discussed:
The Weather Matrix

Learn more about your ad choices. Visit megaphone.fm/adchoices

467- More Ulta Issues

The digital age, with all of its monopolies and consolidation across various markets, has also seen a rise in innovation and small companies seeing success by having unprecedented access to consumers through new channels of commerce and communication.

With market stability and consumer confidence taking hits in recent years, small luxuries like makeup continue to do well despite the struggles of luxury brands in general.  With the success of some niche brands in this highly competitive and specialized sector of cosmetics, what does the weather look like for some of the more established players in the makeup industry?

This week, Phil and Danielle wrap up their discussion about the beauty industry and the way that boutique brands might affect the bottom line for the big names in cosmetic products.

If you want a huge clue as to whether or not you’re looking into a business that will deliver predictably strong returns, don’t miss out on your free copy of The Big 5 Numbers Guide:  https://bit.ly/3psMESQ

Topics Discussed:

ETFs

Augustinus Bader

Victoria Beckham Beauty

Ulta

Sephora

Kering

LVMH

D2C vs retail

Cosmetic science


Resources Discussed:
Lisa Eldridge

Learn more about your ad choices. Visit megaphone.fm/adchoices

466- Ulta's Makeup Weather Part 2

How important is investing to the economy at large? While companies don’t see a direct increase on their bottom line from the secondary market, it can be very important in helping to determine the value of a business and the drive interest in the primary market.

For value investors, having a strong understanding of a business’s weather, i.e. their moat, competitive advantage, and other factors that determine their long-term success, is paramount to generating returns on a multi-year timeline. From the Rule #1 perspective, that’s the key difference between investing and simply gambling on the market.

After a few weeks’ break on the subject, Phil and Danielle return with part 1 of an extra long 2-part episode breaking down the weather of the makeup industry giant Ulta, and share some of their insights into their own weather analysis of their history with this business. 

For help identifying the durable advantage of a company you’re looking to invest in, click here for your free copy of The 5 Moats Investment Guide: https://bit.ly/3Kmb33J

Topics Discussed:

Primary market vs Secondary market

CFO CEOs

Ulta

Augustinus Bader

Victoria Beckham Beauty


Learn more about your ad choices. Visit megaphone.fm/adchoices

348- Betting with Options

Download our free app to listen on your phone