Stock Picking Insights | Conservative Investing | Audio Support for stockpickinginsights.com

Stock Picking Insights | Conservative Investing | Audio Support for stockpickinginsights.com

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Stock Picking Insights | Conservative Investing | Audio Support for stockpickinginsights.com episodes

  • 006 Bitcoin vs Stocks: Both

    Both have their place, Bitcoin is not as good nor bad as people think.

    Written post: http://stockpickinginsights.com/bitcoin-vs-stocks-both-again/

    I prefer to invest my money in individual companies everytime. Low interest rates and Fiat supply increases are in part pushing stock prices higher, leaving me personally with no choices at the moment.

    The first use of Bitcoin is buying and cold storing it. This protects your portefolio against Fiat currency headwinds (inflation).

    The second use of Bitcoin is for everyday purchases. Exchanges such as Binance (not a paid endorsement) offer free Visa debit cards for you to use where Visa network payments are allowed. Buy bitcoin, wait for enough appreciation to cover up spread and other roundtrip fees and use the card to pay for things such as groceries and fuel. Binance charges a spread both in Euro to Bitcoin conversion (0.3 – 1%) and Visa card payments (1 – 2.5%).

    Read the first of the accidental ‘both’ series here.

    14 min
  • 005 Best Stock Picking Souces of Information

    The sources: TIKR.com, valueinvestorsclub.com, eaglepointcap.com, The Investor's Podcast

    Written post: http://stockpickinginsights.com/sources-of-information/

    Books are also great sources of information, but we know that already.

    For US macro analysis, I recommend you to subscribe to USA Facts. They have great insights on how the US economy is being ran. You will find topics such as race inequality, income inequality, government spending and so on there.

    I’ll leave you with a bonus source: Eagle Point Capital’s newsletter. They communicate on a weekly basis, and their insights about businesses are great.

    4 min
  • 004 Share Buybacks: Good or Bad

    Share buybacks are a great way to analyse management behaviour.

    Written post: http://stockpickinginsights.com/share-buybacks-good-or-bad/

    There is not a rule for every company, but we should have trigger points for some behaviours. Ideally, I would love to see:

    • Ocasional repurchases, not every year;
    • Slowing down at increasingly higher multiples.
    • Any behaviour that goes against this prompts a warning.

      Share buybacks typically nudge the stock price up, because buyers interpret it as the company telling the world: “We think our stock is undervalued”. But many, many companies do it chronically.

      8 min
    • 003 Net Income vs Free Cash Flow

      Which one to choose, or both?

      Written post: http://stockpickinginsights.com/net-income-or-free-cash-flow-both/

      What you do with the information is up to you.

      I’m conservative in my approaches, so I use a softened Net Income (3Y Average) pre-adjusted for D&A undercharges. You can take it a step further and use the lowest of the two metrics. I also take a look at differences between the two.

      Most importantly, keep in mind that both can be manipulated. Big differences between them should trigger a warning and further research.

      You can check out the battle between Enterprise Value ratio and PE Ratio here.

      6 min
    • 002 Inditex Qualitative Analysis

      Inditex (fashion retailer) analysis from a qualitative standpoint.

      Written post: http://stockpickinginsights.com/inditex-qualitative-analysis/


      Let’s start with the basic premises of a fast fashion company:

      • People like to look good. This applies to anything that others see: beauty products, a watch, shoes, an iPhone, you name it;
      • People don’t like to wear the same clothes all the time. Think about when someone decides to buy new clothes because their current ones are “old”.
      • This is the root of the purchase. Inditex understood this and created a business model around it:

        11 min
      • 001 My investing mistakes 2020

        Selling without having another investment to put the money on

        Converting EUR to USD before the opportunity to buy came

        Old price anchoring

        Written post: http://stockpickinginsights.com/my-investing-mistakes-2020/

        You are bound to make mistakes, even when you think you won’t as at one point I thought. Better for you to be aware of it and don’t make mistakes that will cost you more than you can handle!

        5 min

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      Insights for long-term stock pickers. Make better decisions when faced with the inherent uncertainty of stock picking.