Playing FTSE

Do we really believe we can beat the market? Are we that conceited? Does it even matter? We'll try our best to give you our thoughts in this weeks PlayingFTSE midweeker!

Who needs to reaffirm their belief in Jesus? Find out in this week’s Playing FTSE show!!

We start off with some news. In a week where the FED announced an increase in the speed of their proposed tapering — to finish in March, rather than June — and three interest rate increases in 2022, the Bank of England also announced a hike in interest rates. Paul and the Steves start off by thinking about the significance of these movements for their investing lives and consider the immediate response from the market. Steve D points out that the announcements remove some of the uncertainty. Steve W notes that the raises in rates aren’t that aggressive, and Paul thinks about Tesla, because it’s not a podcast until someone does.

Next is game from Steve D called “Split!” Taking us back to school with some questions in the style of a Maths GCSE, Steve D asks questions about historic splits, reverse splits, and share offerings. Paul and Steve W attempt to guess hopelessly at questions they can’t possibly know the answer to as well as attempting to remember the answer to questions that they ought to be able to get on account of owning the companies involved. One of the players uses his quota of lucky guessing for the year playing this one — find out who!

Last week, on the podcast, Paul announced that he was in the market for a new stock. With Christmas fast approaching and this being a time for giving, the Steves thought they would go off and try to find him one. Based on Paul’s requirement that the stock should be one that “goes up” Steve D presents a mysterious stock with no name but lots of nice features. It’s a big big company and you absolutely will have heard of it — see if you can guess what it is. Steve W, on the other hand takes the road less traveled, into utilities to look at a company that you probably will not have heard of but it does have a name and pays a growing dividend. Will Paul like either of them? Who knows…

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What’s been going on in the financial world and why should anyone care? Find out as we dive into the latest news and try to figure out what any of it means. We talk about stocks, markets, politics, and loads of other things in a way that’s accessible, light-hearted and (we hope) entertaining. For the people who know nothing, by the people who know even less. Enjoy! 

Got a question for us? Drop it in the comments below or reach out to us on Twitter (@PlayingFTSE).

Enquiries: playingftsepodcast@gmail(dot)com

What did Steve D get for his birthday? What does Paul think of the Lion King? And why does Steve W think Corning is a transparent company? Find out in this week’s Playing FTSE podcast!

This week, we start off with a game from Steve D. Paul and Steve W take random pairs of stocks and try to figure out which has the highest TRAILING EPS. This one’s a high scoring one as Paul and Steve W reason, remember, and wildly guess their way through acquisitions, stock splits, and twenty numbers to remember. Some of these are easier than others—see how you get on. More importantly, see how you get on with the Netflix vs. Visa question. “WOW” says Paul…

With the game out of the way, it’s onto a semiconductor special. We start off with the latest developments in the story concerning Nvidia’s attempt to buy ARM Holdings. Led by new antitrust enthusiast Lina Khan, the FTC has sued to stop Nvidia from acquiring ARM on the grounds that it might unfairly stifle competition with other chip manufacturers. Steve W takes baby steps in figuring out exactly what ARM does, Paul thinks about the implications for Nvidia, and Steve D ponders the possibility of a future ARM IPO and the prospects of owning shares if the company appears on the LSE.

In contrast to Nvidia, Intel has been lagging somewhat lately. Underperforming shares and a general struggle to innovate has caused the X86 outfit to lose ground to its rivals. But this week, the company announced an intention to spin off self-driving car unit Mobileye—arguably the most promising aspect of the company at the moment. With the intention of improving “visibility” for Mobileye, both in terms of investment and in terms of attracting talent, Intel are letting the company trade separately whilst retaining a controlling interest. Paul runs us through the difference between Intel’s Mobileye and Tesla’s FSD as the Steves take opposite views on the wisdom of the move from Intel. Who loves it and who hates it? Find out here!

Lastly, we have a look at the new ETF from ARK. With their flagship ARK Innovation ETF down 22.6% over the last 12 months against a 29% gain for the S&P 500 (figures correct at the time of writing) ARK have launched a new ETF focused on the most transparent companies. Paul looks through the holdings and investigates how closely the fund is tied to the index it purports to track. Steve W wonders why ARK weren’t doing this sooner. And Steve D reflects on the run that ARK have had this year.

Support the show:    There are many ways to help support the show, liking, commenting and sharing our episodes with friends! You can also check out our clothing merch store:  https://playingftse.teemill.com/   We get a small cut of anything you buy which will be reinvested back into the show....COMPOUNDING! (you read that in Svens voice right? Did Briscoe mention he got Sven on the show!?)    

Show Notes: What’s been going on in the financial world and why should anyone care? Find out as we dive into the latest news and try to figure out what any of it means. We talk about stocks, markets, politics, and loads of other things in a way that’s accessible, light-hearted and (we hope) entertaining. For the people who know nothing, by the people who know even less. Enjoy!

Got a question for us? Drop it in the comments below or reach out to us on Twitter (@PlayingFTSE).

Enquiries: playingftsepodcast@gmail(dot)com

If it's your birthday, then stop listening now...

... In a week where everyone's portfolios got double-teamed by the FED and the new COVID variant, Paul and the Steves sit down to discuss the Greek alphabet, buying phones, and the good old days of the S&P 500.

This week's game is a lesson from history as Steve W looks back at the largest holdings of the S&P from days gone by. Some winners still win, such as Microsoft and Apple. Others get too big to succeed, like General Electric and IBM. No comment is made in this about the merits of AT&T... Paul and Steve D try to guess which company had the largest market cap in some of the last 30 years and we think about what this means for buying companies that are thought to be vulnerable to the laws of large numbers inhibiting their prospects for growth.

After that, the present reality hits home as we talk about Omicron and inflation. In a week where a crypto called Omicron boomed for no reason other than the obvious, FED chair Jerome Powell suddenly and mysteriously became concerned about inflation shortly after being nominated for a job extension. Steve W thinks about consumer goods and the capacity for brands to pass on inflation, Steve D thinks about quantitative easing around the world and the implications for an interest rise as Paul wonders whether food in Costco will still be as cheap as it always is.

It's not all bad news, though -- the Steves have found something they like the look of. Salesforce shares fell after their earnings, which were strong but with some disappointing guidance for Q4. A dip in the stock caused Steve W to try and figure out what this company actually does and why everyone seems to think it's so great. Paul and the Steves talk about the company's moat, whether everyone needs a CRM, what a CRM is, and why Salesforce apparently needs two CEOs. 

One of the Salesforce CEOs was elected Chairman of the Board at Twitter this week. With that in mind, we finish with a look at what Jack Dorsey's been up to and what's going on at Twitter. With news that Dorsey has decided to leave Twitter to concentrate his energies on the company formerly known as Square, we think about Square, Twitter, and activist investors who get impatient about stagnant share prices.

What have Paul’s fingers been in? Find out in this week’s Playing FTSE Podcast!

This week, we have a special guest! Tom from ThatFinanceShow joins us for a Q&A session on financial advice, financial independence, and all things to do with his channel. A qualified CFA with more enthusiasm for FIRE than a pyromaniac in charge of a match factory, Tom joins us to answer questions and chat about the latest financial news.

We kick things off with a game from Steve D. Following the success of WhoTube? Steve brings out the second collection of YouTubers for Steve W, Paul, and Tom to recognise. Find out who Tom follows and why this game is Paul’s favourite, as Steve W looks delighted to hear Paul’s voice coming out of the screen. 

The rest of the video features a question and answer session with Tom. Paul kicks us off with a discussion of why Tom started making YouTube videos. Next is a discussion of the FIRE community and how to think about setting financial goals with Steve W. And there’s a discussion with Steve D of workplace pensions and what you should think about before deciding whether or not to opt out of them. Along the way, we hear from Tom about what a financial advisor is for, why we need them and who should look for them, as well as discussing Steve D’s retirement age, Paul’s tent on a car, and the invisible hand that might be about to pull Tom off…

All in this week’s Playing FTSE Podcast!

What’s been catching the eye of both Steves this week? What’s Paul going to do about Johnson & Johnson? And which of the Playing FTSE team is the most ill? Find out in this week’s Playing FTSE podcast!

We kick the show off with the Steves talking about things that they’ve been buying in the last week. Earnings reports and other events have caused some significant price movements in stocks that the Steves are interested in, most significantly Brazilian Fintech StoneCo. A fall in the value of one of their investments coupled with a difficult economic situation in Brazil has caused a significant fall in StoneCo’s share price. Both Steves have been jumping on board. Steve D explains why.

Next up is this week’s game, which is all about the PEG ratio. A metric for valuing companies by comparing the Price-Earnings multiple to the anticipated EPS growth, the PEG ratio was made famous by Peter Lynch. Steve W asks the questions as Paul and Steve D try to guess which companies have the lowest (and therefore best) PEG ratios. Along the way, we discuss some of the things that the PEG ratio shows us (how stocks with low PE multiples aren’t always cheap) and some of the limitations of the PEG ratio (its inability to price stocks with no net earnings).

The big story of the week is the separation of Johnson & Johnson into two companies (presumably called “Johnson” and “Johnson”). As JNJ prepares to spin out its consumer products arm and hold onto its medical devices and pharmaceutical businesses, Steve W thinks about the motivations for the move, Steve D points out the change in leadership, and Paul talks about his plans for his JNJ holding.

In earnings news, US retailer Macy’s has shot up after earnings came in stronger than anticipated. A stock that was widely-regarded as a victim of lockdowns, travel restrictions, and pandemic measures, M stock has rallied remarkably since its April lows. Paul reflects on how that one passed him by as the Steves watch on.

Lastly, we finish with a review of some 13Fs. It’s that time of the quarter where the institutional investors show us what they’ve been up to. With quiet reports from Berkshire Hathway and Pabrai Investments, we turn our attention to the endlessly-fascinating Michael Burry. The news is that Burry’s been retreating away from the US and has exited the trading positions that were at the top of Scion’s holdings last quarter. As Steve W comments on Scion’s second-largest holding, Paul wonders about how investment decisions get made at Burry’s firm.