Welcome to the "Investing for Beginners" podcast, where we dive deep into the world of investing. In this episode, Dave and Andrew discuss the crucial aspect of knowing your "why" when it comes to investing. They emphasize the importance of understanding your motivations and goals before diving into the stock market. The hosts share their personal experiences and provide practical tips for listeners to define their own "why." From setting a commitment to investing to the power of compound interest, they unpack the fundamental steps for creating a strong foundation in investing. Join us as we explore the significance of having a clear vision and purpose in your investment journey.

00:00 Approach stock trading based on your goals.

04:12 Importance of having a plan and motivation.

08:00 Manage risk, choose real estate or stocks.

10:15 Diverse ways to grow wealth and invest.

15:44 Inspiring people to achieve financial freedom.

19:09 Share with close ones to be accountable.

20:04 Start with $50, grow over time.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

 DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome back to The Investing For Beginners Podcast, this is episode 337, and I'm your host Dave, along with co-host Andrew. Today we delve into the intricacies of stock prices and their movement—or lack thereof. Andrew kicks things off by discussing why stocks might stagnate due to reasons such as overpaying and uncertain prospects, while I'll touch on how some companies might just slip under the radar, creating illiquidity in trading.

In this episode, we'll also unpack the meaty concept of a stock's terminal value, with a nod to tech giants like Walmart and Apple, and talk about how expectations for future growth can hugely influence stock returns – thinking about companies like Zoom and Peloton during the pandemic.

As we weave through these topics, we'll tackle the big question many of you have: should your hard-earned money go into a high-yield savings account or an index fund? It's all about what you're saving for and your timeline - we'll guide you through these choices, from short-term goals like a house or a car, to long-term plans such as retirement, highlighting the importance of dollar-cost averaging.

We're also hitting on the rapid price escalations of companies like PayPal and Nvidia, and what it means to "grow into their valuations." Plus, we have an audience question from Rachel about the sometimes puzzling differences between depreciation and amortization on cash flow and income statements. We'll clear the air on that, so you understand the impact on a company's financial health without getting bogged down in the numbers.

And remember, as Einstein said, "Make it as simple as it needs to be and no simpler." Are you ready to demystify investing? Let's get into it!

00:00 Investing in stocks needs long-term time horizon.

05:24 Time in market beats timing market, habitually invest.

06:26 Consistently invest in market for long-term benefit.

11:23 Accounting principles: balancing revenues, costs, and statements.

13:59 Income statement items explained including non-cash expenses.

16:33 Buyers knew company's greatness; uncertainty about future.

19:55 Finance industry values long-term prospects of stocks.

24:02 Anticipation of revenue growth drives stock prices up.

27:37 Active investing requires diligence and attention to detail.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to The Investing for Beginners Podcast, I'm Dave, joined by Andrew. In episode 336, we tackle the myths around imitating investment giants like Warren Buffett and emphasize forging your own path in the financial markets.

We debate the merits of diversification vs. selecting top-tier businesses, with Andrew sharing his personal investment principals and sectors to avoid. We also examine the intricacies of capital spending and R&D investments, underscoring the success stories of Microsoft and Apple to illustrate our points.

Later, we discuss evaluating management quality and competitive edge in the market, sprinkling in resources like Michael Porter's literature and "Seven Powers" by Hamilton Helmer for those wanting a deeper understanding.

For our beginners, we stress starting small, using trusted brokers, and keeping a long-term mindset. We advocate for learning the ropes of the stock market gradually, reassuring you that everyone makes mistakes along the way.

So buckle up for a straightforward, wisdom-packed episode aimed at helping newcomers navigate the investment landscape with confidence. Let's get started!

00:00 Approach investing as a lifelong learning journey.

03:54 Experience stock market by investing wisely.

09:38 Tech dominates market, diversify for best returns.

13:06 Diversified portfolio focused on individual stock performance.

14:44 Focus on finding best business, not sectors.

20:13 R&D is crucial for creating new products.

21:58 Compare margins and spending to revenue growth.

27:23 Incorporating stock analysis into long-term investment strategy.

29:30 Evaluate business management by measuring financial performance.

32:18 Analyze performance, compare numbers in retail industry.

35:16 Encouraging sign-off after discussing awesome book.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Today's show is sponsored by:

Compare and find smarter credit cards, savings accounts, and more today at NerdWallet.com. 

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial. 

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to episode 335 of the Investing for Beginners podcast! In this episode, Dave and Andrew dive into a comprehensive discussion about five valuation metrics that can help investors understand the value of a company. They start by explaining the simplest and most frequently used shortcut for evaluating stocks, known as the price to earnings ratio. They also cover the importance of understanding how different metrics apply to companies in various stages of their lifecycle. Additionally, they share insights into the price to free cash flow, price to sales, and price to gross margin metrics before delving into the fascinating world of discounted cash flow (DCF) models. Throughout the discussion, they emphasize the importance of not relying solely on these metrics for investment decisions and highlight the need to compare and interpret them within a larger investment strategy. Prepare to gain valuable insights from this episode as Dave and Andrew shed light on essential valuation techniques and provide practical examples to help simplify the complex world of stock valuation.

00:00 PE ratio not suitable for cyclical companies.

03:14 Consider industry differences when comparing performance metrics.

08:04 Price to free cash flow provides crucial insights.

09:39 Sales indicators are more consistent than earnings.

12:55 Price to sales reveals company's value better.

17:44 Superior product, efficiency, technology, potential moat, pricing power, Buffett's investments: key investment indicators.

19:46 Simplify investment evaluation and future cash flow.

22:30 Valuing business using discount rate for negotiation.

26:47 Free email series teaches building DCF model.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

P.S. Want to grow as an investor?

Learn to Start valuing a company in 7 days for free.

Discover the 6-step process to value companies. Unravel the mystery of valuing Google, Microsoft, Amazon, and more.

Join here (it's free) → https://lnkd.in/gwzB5MPy

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome back to the Investing for Beginners podcast! In today's episode, Dave and Andrew delve into the concept of "draft classes" for companies, analyzing the top-performing companies of various years and discussing the implications for investors. They examine the performance of companies like Amazon, Nvidia, AMD, and others, and explore the lessons that can be learned from these draft classes. Join us as we uncover the insights from this fascinating discussion and learn how past performance can influence future investment decisions. Stay tuned for a deep dive into the world of investing and the valuable lessons to be gleaned from the past.

00:00 NVDA and AMD awesome, others not great.

04:09 Analyzing stock performance through batting averages.

08:31 Mixed performance for Square, Zoom, Peloton, Moderna.

12:05 Nvidia and Amazon have good track records.

15:26 Stock market trends over 30 years.

18:17 Timing market for Nvidia may impact returns.

20:48 Manage investment decisions carefully to avoid impulsiveness.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Dave: Welcome to The Investing For Beginners Podcast. I'm your host Dave, joined by my co-host Andrew. Today, we present a compelling episode with Matthew Roseberry, titled “Matthew.”

Andrew: Matthew, an author and self-taught investor inspired by investing legends Buffett and Munger, shares his journey and strategies that simplify investing for the younger generation.

Dave: Beyond numbers, it's the investor's psychology that Matthew underscores, using examples like the renowned Coca Cola. We'll explore how to introduce teens to investing through their existing interests and the imperative concept of compound interest.

Andrew: With a look at Activision Blizzard’s moat within the gaming sector and the benefits of company founders at the helm, Matthew imparts his knowledge that serious investors should not overlook.

Dave: So stay tuned for a thought-provoking discussion on investing fundamentals and strategies tailored for longevity and success.

00:00 Interest in making money led to investing.

05:53 New investors don't need to overcomplicate things.

07:29 Coca Cola's marketing builds share of mind.

12:46 Founder-led companies prioritize simplicity and user-friendliness.

15:21 Conflict with Charlie on Costco board avoided. Costco's ethical, customer-focused business model emphasized.

17:04 Activision Blizzard is a social network for gamers.

21:03 Acquiring Activision will lead to long-term profit.

25:34 Start with what you love: investing advice.

29:01 Compound interest key for teenagers' long-term wealth.

31:45 Book on investing like Buffett and Munger. Suitable for teenagers and new investors. Emphasizes the power of incentives in investing.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

More from Matthew Roseberry:

A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

On episode 333 of the Investing For Beginners Podcast, Dave and Andrew dive into three great listener questions. They start with Tyron's inquiry about evaluating stocks in the European market and discuss the implications of currency differences and accounting practices. They then address Sergio's question about free financial ratio tools, offering recommendations like Quickfs.net and finviz.com. Lastly, they explore the impact of equity raises, discussing the importance of considering cash allocation and profitability, using the example of Plug Power's recent dilution. Join Dave and Andrew as they provide insightful responses to these thought-provoking investment questions.

00:00 Understanding currency and metric consistency in analysis.

05:33 Finchat IO and others offer free services.

07:14 Importance of company life cycle for investors.

10:34 Raising equity means owning less of company.

13:37 Important to consider demand before raising capital.

16:10 Chart shows market cap growth needed to offset dilution.

21:22 ROIC tracks profitability and capital allocation success.

22:27 Analyzing return on equity and dollar earnings.

25:51 Closing remarks express gratitude and welcome questions.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

In the latest episode of The Investing For Beginners Podcast, Dave and Andrew tackle key listener questions about investing and finance. The episode kicks off with advice for a listener named Danny, who is living paycheck to paycheck despite having no debt. Andrew and Dave discuss the importance of starting to save for retirement, offering insights on wealth generating opportunities like 401ks and real estate. They emphasize the significance of finding a job with a 401k match and share personal experiences to underscore the benefits of investing early in one's career.

The hosts also delve into the question of when to sell a stock, prompted by a query from a listener named Ryan. They share their individual perspectives on establishing a selling discipline and emphasize the significance of assessing if anything fundamentally changes about a business before making a decision.

Throughout the episode, Dave and Andrew draw parallels between fitness and investing, and encourage listeners to focus on gradual improvement and consistency. With real-life examples and practical insights, they deliver valuable advice for both seasoned investors and beginners looking to navigate the world of finance and investment.

00:00 Don't miss out on 401k match.

03:49 Consider your investment goals and options.

06:20 Investing small amounts can lead to wealth.

12:06 Understanding worst case scenario alleviates anxiety.

14:46 Best reason not to sell: fundamental business.

16:08 Document your reasons for investment decisions.

19:12 Questioning fundamental changes in the business.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to The Investing For Beginners Podcast, I'm Dave and with me is Andrew. In episode 331, we're diving into the crucial role of conviction in investing. Learn why knowing the reason behind your investments can help you stay the course during market volatility and aid in building wealth over time.

We'll share tips on how to develop and maintain your conviction, even when the market tests your resolve. Discover insights on the pitfalls of overconfidence and the wisdom of humility.

Andrew will discuss his long-term holding approach focused on quality, and I'll emphasize understanding a company's true value. We'll also touch upon the importance of systems like dollar-cost averaging and strategies to prevent rash decisions, including insights from our experience with Berkshire during uncertain times.

Join us as we explore the power of informed investing decisions and building a steadfast investment philosophy. Let's get started!

00:00 Understanding the game, investing wisely, avoiding mistakes.

04:02 Consistency in investment and learning from mistakes.

07:26 Focus on behavioral psychology in business success.

12:53 Write down your understanding to handle stress.

15:18 Repeated deep dives reveal valuable missed details.

17:52 Understanding outward vs inward looking investment strategies.

22:09 Maintain confidence and patience in investing strategy.

26:03 Understanding your limits, sticking to your plan.

28:45 Don't follow the herd, focus on opportunities.

33:09 Slow down, create systems for rational decisions.

34:51 Company seemed strong despite pandemic challenges and price.

39:15 Investors can find opportunities with deep analysis.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome back to The Investing For Beginners Podcast, episode 330! I'm Dave, and with me is my co-host Andrew. Today, we're unpacking the significance of ROIC and price to free cash flow in company analysis. Understanding these numbers could be the difference between picking a gem and falling for a dud.

We're also exploring the intricate balance between art and science in investing. Whether you lean towards growth or value strategies, we'll discuss how intuition and analytical rigor shape your investment choices.

For an extra special twist, Andrew and I are in the same room, broadcasting live together for the first time ever! We'll dissect the theory of intrinsic value and the conundrum of market inefficiencies, taking a close look at intriguing cases like Netflix.

Plus, we'll get into the nitty-gritty of P/E ratios and how market sentiment reflects in these figures. Ready for a journey into the heart of investing wisdom? Stay tuned as we merge hard data with gut feeling in this unique episode of The Investing For Beginners Podcast!

00:00 Intrinsic value: easy to visualize, agreed societal worth.

03:41 Efficient market theory, new info affects stock prices.

07:06 Science of stock valuation focuses on numbers. Art involves interpreting news and industry for value.

12:37 Comparing Visa and PayPal’s revenue growth.

15:22 PayPal and Visa acquisition prospects diverge.

16:44 Balancing intuition and logic in investment decisions.

20:47 PE ratio gives relative idea of value.

26:20 Higher ROIC linked to higher company valuation.

28:40 Different types of businesses have different ROICs.

32:39 Long-term decline leads to shareholder value destruction.

35:39 Growth investing values future, value focuses on past.

37:56 Mature businesses are more stable than growth.

41:26 Invest in companies with growth potential and stability.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com 

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Today's show is sponsored by:

Get 55% off at Babbel.com/BEGINNERS.

Go to greenchef.com/60beginners and use code 60beginners to get 60% off, plus 20% off your next two months!

Use promo code INVESTING today at shipstation.com to sign up for your FREE 60-day trial.

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices