In this episode of Financial Modeler’s Corner, host Paul Barnhurst sits down with financial educator and author Brian Feroldi. They discuss the fundamentals of stock investing, financial modeling, and how to identify high-quality companies. Brian shares insights from his investing journey, his investing checklist, and his thoughts on valuation, competitive advantages, and the role of financial models in investment decisions.
Brian Feroldi is a financial educator, investor, and author dedicated to demystifying the stock market. With nearly two decades of investing experience, Brian has written over 3,000 articles on stocks, personal finance, and investing. His best-selling book “Why Does the Stock Market Go Up?” explains market fundamentals in simple terms. Through his YouTube channel, social media presence, and educational content, Brian helps investors make smarter decisions by focusing on business quality, valuation, and long-term investing strategies.
Expect to Learn:
- Why financial models depend on good assumptions and how they can be manipulated
- The biggest mistakes investors make and how to avoid them
- How Brian analyzes financial statements and what metrics he prioritizes
- The five key types of competitive advantages (EMOTs) in business
- How to build an investing checklist to guide stock selection
Here are a few quotes from the episode:
- “When I invest, I’m looking for businesses that can outperform even the most bullish expectations.”
- “Understanding where a company is in its business lifecycle is critical to valuation.”
- “The biggest mistake people make is using the wrong valuation model for the wrong type of company.”
Brian’s emphasis on having a structured investing checklist, focusing on competitive advantages, and choosing the right valuation method for the right stage of a company’s lifecycle highlights the importance of strategy over speculation. If you're looking to improve your investing game, start by educating yourself, refining your process, and remembering that patience often wins the race.
Follow Brian:
- LinkedIn - https://www.linkedin.com/in/brianferoldi/
- Website - https://www.brianferoldi.com/
- Email - [email protected]
- YouTube - https://www.youtube.com/brianferoldiyt
- Book - https://a.co/d/3gS5JZL
Follow Paul:
- Website - https://www.thefpandaguy.com
- LinkedIn - https://www.linkedin.com/in/thefpandaguy
- YouTube - https://www.youtube.com/@thefpaguy8376
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In today’s episode:
[01:02] - Introduction to Guest Brian Feroldi
[06:35] - Brian’s Investing Journey and Early Mistakes
[10:19] - Brian’s Checklist for Evaluating Companies
[15:41] - The Financial Statement Analysis
[20:24] - Competitive Advantages (EMOTs)
[29:50] - Advice to Begin Investing in the Market
[31:20] - Common Investor Mistakes
[33:51] - Valuation Models & Growth Cycles
[41:36] - Final Advice & Book Recommendations
[42:55] - Where to Find Brian