Stock Stories

Today we're looking at one of the world's largest transportation companies, Federal Express (better known as FedEx). We'll discuss the history, business model, and financials of this logistics giant.

History: [01:02]
Business Model: [03:27]
Financials: [05:47]
Stock Price: [13:08]

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Disclaimer: Everything shared is for informational and educational purposes only.  Nothing I share on this platform should be construed as financial, tax, or legal advice.  Please consult a competent professional who can assist with your specific needs and circumstances.

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Morgan Stanley's Origins and Glass-Steagall Act [00:00:00]
Merger with Dean Witter and Diversification [00:02:27]
Financials and Business Segments of Morgan Stanley [00:04:51]
Debt Issuance and Payments [00:10:35]
Increasing Cash Dividends [00:11:45]
Stock Performance and Valuation [00:12:49]

🎧 Listen to 200+ episodes on other companies and mental models:

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Disclaimer: Everything shared is for informational and educational purposes only.  Nothing I share on this platform should be construed as financial, tax, or legal advice.  Please consult a competent professional who can assist with your specific needs and circumstances.

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Today we'll learn about Citigroup, one of the Big Four American banks. Like its peers, Citi has had a tumultuous history. Is the stock worth the price at current levels?

History of Citigroup [00:02:26] Citigroup's history, from its founding in the early 1800s to its expansion and innovation in the 20th century, to its acquisition of Travelers Group and subsequent spinoff, to its troubles during the financial crisis and eventual return to profitability.

Citi's Business Model [00:04:50] An overview of Citigroup's business model, including its five major markets: banking, personal banking, markets, Citi Global Wealth, and services.

Citigroup's Financials [00:07:00] A summary of Citigroup's financial data over the past several years, including its revenue, net income, dividends, and share repurchases.

Citigroup's stock price performance [00:10:22] Citigroup's stock price has been flat over a year and down over 30% over the past five years. The market is pricing it lower than its peers, but it could be a good stock to own potentially.

Earnings yield and dividend yield of Citigroup [00:11:20] The earnings yield of Citigroup stock is 15%, and the dividend yield is 4.39%, which is higher than average in the market right now.

Is Citigroup a potential value play? [00:12:26] Citigroup could be a potential value play, but it depends on whether you want to own a bank with slower growing revenues compared to its peers.

🎧 Listen to 200+ episodes on other companies and mental models:
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Disclaimer: Everything shared is for informational and educational purposes only.  Nothing I share on this platform should be construed as financial, tax, or legal advice.  Please consult a competent professional who can assist with your specific needs and circumstances.

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Bank of America has become one of the largest banks in the United States, and has rebounded nicely from the Great Recession of 2008. We'll look at the history, business model, and financials of this banking giant.

01:17 - History of Bank of America. The founder of Bank of America, Amadeo Peter Giannini, opened the Bank of Italy in San Francisco in 1904, which later merged with another bank in Los Angeles in 1928 and was renamed Bank of America. The bank expanded through acquisitions and innovations such as the Bank America card, which later became Visa.

05:37 - Bank of America's Recovery. After suffering major losses from acquiring Countrywide Financial, Bank of America paid over $23 billion in fines and downsized, but returned to growth in 2015 and is now the second largest bank by deposits in the US.

08:01 - Financials of Bank of America. Bank of America's financials show mid single-digit growth across all segments, indicating a diversified financial business. The bank has seen gradual growth in interest income and revenue, and has been actively buying back shares while paying out a dividend.

🎧 Listen to 200+ episodes on other companies and mental models:

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Disclaimer: Everything shared is for informational and educational purposes only.  Nothing I share on this platform should be construed as financial, tax, or legal advice.  Please consult a competent professional who can assist with your specific needs and circumstances.

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Check out these 100 stock market investing lessons below! For all of the fun visuals, check out the video on the Stock Stories YouTube channel.

0:51 - (1) Why Invest?
01:57 - (2) Investing Goals
03:00 - (3) Put Your Money To Work
03:39 - (4) What's Your Goal?
05:15 - (5) Shares = Business Ownership
06:07 - (6) Intrinsic Value
07:15 - (7) Greed vs Fear
08:03 - (8) Margin of Safety
09:00 - (9) Don't Fall In Love
09:30 - (10) Investing Takes Time
10:08 - (11) High Interest Debt
10:49 - (12) Asset Class Time Horizon
11:40 - (13) 10-K Filings
12:32 - (14) 13-K Filings
13:29 - (15) CEO's Letter to Shareholders
14:07 - (16) The Three Financial Statements
15:02 - (17) Assets vs Liabilities
15:59 - (18) Revenue vs Profits
16:58 - (19) Price to Sales Ratio
17:46 - (20) Price to Earnings Ratio
18:21 - (21) Trading Stocks
19:39 - (22) Active vs Passive
20:58 - (23) Age as Proof of Concept
21:54 - (24) Timeless Businesses
23:14 - (25) Young Businesses
24:11 - (26) Size Matters
25:45 - (27) Initial Public Offerings
27:33 - (28) Brand Strength
28:43 - (29) Oil and Biotech Volatility
30:15 - (30) Boring Businesses
30:39 - (31) Exciting Businesses
31:43 - (32) Beat Inflation
32:38 - (33) Returns Don't Matter...At First
33:34 - (34) Fees Matter
34:16 - (35) Asset Location
35:19 - (36) Capital Gains Taxes
36:09 - (37) Index Funds
36:55 - (38) Index Fund Components
37:59 - (39) 80% Under-perform
38:38 - (40) 20% Over-perform
39:16 - (41) Timing the Market
41:27 - (42) Opportunity Cost
42:29 - (43) Portfolio Personality
43:43 - (44) Invest Internationally
44:51 - (45) Structural Issues
45:45 - (46) Worst Industries
47:38 - (47) Best Industries
49:34 - (48) Industry Characteristics
50:13 - (49) Old and New Industries
50:56 - (50) Businesses Evolve
52:06 - (51) Volatility by Size
52:46 - (52) Quality of Earnings
54:36 - (53) High Regulation
55:55 - (54) Barrier to Entry
57:50 - (55) Perpetual Debt
59:19 - (56) Low Debt
60:23 - (57) Interest Rates
61:55 - (58) Top Index Components
63:37 - (59) Cash Is King
65:25 - (60) Share Dilution
66:46 - (61) Share Buybacks
67:54 - (62) Failure
68:37 - (63) Buyouts
69:13 - (64) Efficient Market Theory
71:28 - (65) Analyst Over-optimism
72:32 - (66) Mismatched Expectations
73:38 - (67) Insider Buying
74:40 - (68) ESOP
75:18 - (69) Dividends at Mature Firms
76:06 - (70) Dividends at Young Firms
76:29 - (71) Dividend Growth and Quality
77:34 - (72) Small But Profitable
79:02 - (73) Risk Shifting
80:00 - (74) 100 Baggers
81:10 - (75) Unicorns
81:44 - (76) Value Trap
82:40 - (77) Business vs Stock Performance
83:29 - (78) ROE Definition
84:04 - (79) Long Term Value = ROE
85:03 - (80) Valuation and Expectations
85:50 - (81) Average Business, Super Cheap
86:28 - (82) Excellent Business, Super Expensive
87:06 - (83) Three Dimensions of a Stock
88:13 - (84) Leverage Effects
89:09 - (85) Three-Legged Stool
90:33 - (86) Risk-Adjusted Total Return
91:36 - (87) Spin-offs and Split-offs
92:30 - (88) International Expansion
93:51 - (89) Taxes on Foreign Dividends
95:13 - (90) Wash Sale Rule
95:57 - (91) Float
97:40 - (92) Total Addressable Market
99:19 - (93) Volume / Margin Mix
100:49 - (94) Acquisition Logic
102:16 - (95) Industry Stabilization
103:27 - (96) Three Levels of Risk
104:33 - (97) Many Faces of Diversification
105:44 - (98) Debt Structure
106:54 - (99) Horizontal and Vertical Thinking
108:20 - (100) The Most Important Lesson...

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In this episode of the Stock Stories podcast, we will be discussing the history, business model, and financials of Goldman Sachs. We will provide a brief history of the company, highlighting its innovation in trading capabilities and investment banking services. Today, Goldman Sachs has three main divisions: global banking and markets, assets and wealth management, and platform solutions. It is worth noting that Goldman Sachs derives most of its revenue from investment activities, with the investment management division showing steady growth. We will also take a look at the balance sheet and cash flow statement of Goldman Sachs, concluding that the stock is not undervalued or overvalued.

00:46 - Goldman Sachs History
The history of Goldman Sachs, from its origins in commercial paper trading to its expansion into investment banking and asset management.

05:20 - Goldman Sachs Business Model
An overview of Goldman Sachs' business model, including its three main divisions: global banking and markets, assets and wealth management, and platform solutions.

08:21 - Goldman Sachs Financials
A breakdown of Goldman Sachs' revenue streams, including investment banking, investment management, commissions and fees, and market making.

10:08 - Goldman Sachs' Revenue 
Goldman Sachs' revenue in investment management has steadily grown, while their investment banking division needs improvement.

11:04 - Goldman Sachs' Expenses and Profits 
Goldman Sachs' expenses are mostly compensation and benefits, with a profit of 107 billion in 2022, a far cry from the 21 billion in 2021.

13:48 - Goldman Sachs' Cash Flow and Stock Performance
Goldman Sachs has a good cash position relative to their loans, invests in acquisitions and technology, pays dividends, and has a stock price history of 38% growth in the past five years.

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Today we discuss the importance of conservatism in banking and the risks of not managing risk well. He then analyzes the history, business model, and financials of Wells Fargo, noting that the bank is a fundamentally good business with potential for growth. Despite a decline in revenue due to economic headwinds and a scandal related to fraudulent cross-selling, I believe that Wells Fargo is simplifying its operations and positioning itself for strong shareholder returns in the future. While I would prefer a slightly cheaper valuation, I do consider Wells Fargo to be a good business and a potential investment opportunity.

00:46 - History of Wells Fargo
The founding of Wells Fargo by Henry Wells and William Fargo, their early courier business, and the company's expansion to the West Coast during the gold rush.

 05:33 - Divisions of Wells Fargo
An overview of Wells Fargo's four main divisions: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management.

07:38 - Financials of Wells Fargo 
A breakdown of Wells Fargo's revenue, including net interest income and non-interest income, and how the company is still recovering from the scandal related to fraudulent cross-selling.

09:28 - Valuation of Wells Fargo 
Alex Mason discusses the valuation of Wells Fargo's stock, which he believes is relatively cheap at 11 times earnings.

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In today's episode, I reveal the big project that I've been working on for the past year.

Email: [email protected]

Today, I am excited to share with you the story of JP Morgan Chase, the largest bank in the United States. We'll look at the history of the bank, its business model, financials, and risks.

I believe that rising interest rates will ultimately benefit the bank as long as the overall system remains robust, and we'll look at potential impacts of interest rates on JP Morgan Chase's revenue and profits.
 
History of JP Morgan Chase [00:00:42]

Business Model of JP Morgan Chase [00:03:39] 

Financials and Risks of JP Morgan Chase [00:07:18] 

Interest Rates and Revenue Growth [00:09:06] 

JP Morgan Chase Stock Price [00:10:46] 

🎧 Listen to 200+ episodes on other companies and mental models:

https://stockstoryteller.com/podcast/

Disclaimer: Everything shared is for informational and educational purposes only.  Nothing I share on this platform should be construed as financial, tax, or legal advice.  Please consult a competent professional who can assist with your specific needs and circumstances.

Email: [email protected]

Today we discuss the history, business model, and financials of NVR Inc, a home builder, to determine if it is a potentially good investment for individual investors. We go over the company's financials, including their revenues, home building income, and net income, including the fact that NVR's net income has doubled (!!) over the past couple of years, and their earnings per share have been increasing rapidly. We also look at the risks of this cyclical company.

History of NVR: [00:00:00]
Business Model: [00:08:07]
Financials: [00:08:58]
NVR Inc. Risks and Conclusion: [00:14:34]

🎧 Listen to 200+ episodes on other companies and mental models:

https://stockstoryteller.com/podcast/

Disclaimer: Everything shared is for informational and educational purposes only.  Nothing I share on this platform should be construed as financial, tax, or legal advice.  Please consult a competent professional who can assist with your specific needs and circumstances.

Email: [email protected]