IFB122: Analyzing the Growth of a Stock, Pt 2

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Dave:                                    00:35                     All

right, folks, we’ll welcome to the Investing for Beginners podcast, episode 122

tonight we’re going to do part two of analyzing the growth of the stock. And

one of the things that are going to be a theme tonight is appearances can be

deceiving. Not all growth is equal, so you never know what you’re going to get

until you get into it. So like Forrest Gump used to say, life has a box of

chocolates; you never know what you’re going to get. So tonight I think, you

know, worst you’re going to get, but Andrew and I are going to talk a little

bit. So Andrew, once you go ahead and start us off and then we’ll chat a little

bit.

Andrew:                              01:11                     Yeah,

sounds good. I’m excited to hear about the example that we talked about off

air. I think that kind of ties it in nicely, and it’s, you know, we’ve been

talking about growth and, you know, if you haven’t listened to the last

episode, I would recommend doing that. But bottom line, you know, a business

grows, a stock goes higher in the stock market because it’s able to grow

earnings and profits over time. And so as an investor, there are so many

different ways, and like a box of chocolates, I guess. There are different

flavors of ways that you can try to reevaluate a stock’s growth. And what’s

frustrating is there’s never one perfect way. And you know, one, if you have

some indicator that you found this year that’s worked to help you pick stocks

that grew, maybe that, that indicator doesn’t work next year.

Andrew:                              02:06               ...