The Investing for Beginners Podcast - Your Path to Financial Freedom

Welcome to the Investing for Beginners podcast! Today's episode, we will be joined by a special guest! Simon Erickson, host of 7investing podcast, will be joining us today to talk about his investing principles, portfolio allocation, the different industries he's interested in and much more! Listen on as we have a fun conversation on topics that not only will be insightful for beginners but also veterans out there. Let's go!

Timestamps of the episode:

-Simon shares his investing story and why he uses the number "7" in his company 7investing. [02:28]

-Why investing is such a personal endeavor and how Simon molded his own. [05:05]

-He talks about his favorite part of the semiconductor value chain and how it is more relevant today then ever. [08:00]

-How to think about balancing your portfolio if it is exposed in a cyclical industry. [11:14]

-The "hype" cycle is the enemy of a long term investor and how to avoid it. [13:25]

-Understanding deeper into the weeds of AI and Nvidia chips. [16:34]

-Switching gears into the defense industry and why it is relevant in recent times. [18:55]

-Signs that a management is a good capital allocator. [20:45]

-How to differentiate between a company that has done well in the past and will continue to do so over a company that shows promise at first but will ultimately flame out. [23:14]

-The importance of understanding which business life cycle a company is in. [25:17]

-A business that continues to protect its moat will surely thrive. [27:45] 

-Simons shares the story behind the 7investing service and how it empowers retail investors. [29:42]

-Why fees shouldn’t be overlooked when you can do it yourself. [31:48]

-Discussing the barbell portfolio and how you should allocate each holdings in it. [32:45]

-The biggest advantage of an individual retail investors against institutional firms. [36:20]

-How to approach and analyze companies of different market caps. [37:00]

-Simon talks about the space economy and how it will be a driving force of the world economy in the coming decades. [39:23]

-The beauty of the world of investing where your curiosity is rewarded financially. [43:27]

-Simon tells his best dad joke. [47: 29]

Note: Timestamps may differ and are approximate, depending on your podcast player.

Simon's website- https://7investing.com

His podcast- https://open.spotify.com/show/7wBWhst8U3CqSeQ8fRGCLO?si=58b4a51ae67947ec

His Youtube channel- https://www.youtube.com/channel/UCAI0YGmr9W96nZI1q3vSJHg

Today's show is sponsored by Rocket Money:

Cancel your unwanted subscriptions and manage your money the easy way by going to rocketmoney.com/beginners 

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

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Welcome to the Investing for Beginners podcast! Today is a special episode and an announcement at the same time! Andrew will share with us the exciting changes with his stock research e-letter service and also the insightful lessons he learned after doing this for almost ten years- time surely flies. This is a pivotal moment for us in the podcast as we are excited to bring more value to our listeners moving forward so listen on to learn more!

Timestamps of the episode:

-Andrew talks about his new revamped Sather research e-letter service, how it evolved and why it will serve its subscribers better in a new platform. Plus, new features! [01:48]

-What prompted the change and rebrand of his stock picking service. [03:53]

-Andrew shares how his investing evolved after doing the e-letter service for almost ten years. [05:56]

-Investing lessons and mistakes Andrew learned throughout the years. [08:09]

-Dollar cost averaging strategy lessons: The good and the bad. [15:20]

-The power of being open-minded and not stubborn to change is a valuable trait every investor should have. [17:35]

Note: Timestamps may differ and are approximate, depending on your podcast player.

Value Spotlight website- https://valuespotlight.com

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

Today's show is sponsored by Rocket Money:

Cancel your unwanted subscriptions and manage your money the easy way by going to rocketmoney.com/beginners 

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Welcome to the Investing for Beginners podcast! Today we have a special guest! Joining us today will be Paul, a good friend we met in Twitter (or X now) where he will talk with us a diverse range of topics spanning from his experience working under Constellation software before into good capital allocation, value traps and more. Listen on as he discusses great insights into valuations especially on micro caps and also the key in finding quality businesses. This is such a great episode with so many gems that it's a pity we only have an hour (almost) of an episode!

Timestamps of the episode:

-Paul shares his investing journey and gives credit on having people showing you the way. [02:10]

-He talks about the first stock he bought and how it started paving the way on doing great due diligence. [04:20]

-The importance of finding your own style in investing even though we all stand on the principles of investing giants. [07:00]

-Overpaying is the most common problem among investors and drags returns overall. [09:28]

-Paul shares his approach on what to do if he is gonna start investing all over again today, the rules to follow and sifting through noise of readily available information. [12:20]

-He breaks down what an earnings yield is and how it drives business return overall. [16:20]

-Differentiating between cheap stocks that deserves to be cheap and the ones that has sustainable earnings but the market values it cheaply. [19:35]

-What are value traps and why year over year fast revenue growth of value traps should not excite you. [21:55]

-Management's quality in realizing shareholder value is important for every thesis/valuation to play out.[26:00]

-Why looking acutely on the cash position of a company's balance sheet is relevant in gauging a management's skill in capital allocation. [30:50]

-Paul shares his experience working under Constellation software before and why most small software companies are not run capital efficiently. [35:29]

-What valuation ultimately means to Paul and how he approaches it. [38:00]

-The key to finding quality businesses is by making the process simple. [42:35]

Note: Timestamps may differ and are approximate, depending on your podcast player.

Paul's Twitter (X) handle- https://twitter.com/Investmentideen

His substack- https://investmentideas.substack.com

Books and resources mentioned in the episode:

Seth Klarman's book- Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

Joel Greenblatt- You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits

Geoff Gannon compilations download link- https://bit.ly/3QyzIpF

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

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Welcome to the Investing for Beginners podcast! In today's episode, we will do a bird's eye view in how to approach in studying an industry that is not in your circle of competence as investors will say. We will take you in on how we approach it ourselves step by step and discuss the nuances of each so listen on!

Timestamps of the episode:

-Great frameworks to use in starting to study a new industry. A way to extend your circle of competence. [01:50]

-Starting with the sales trend of companies in an industry paints a financial picture to where an industry is headed. [05:20]

-Identifying the key players in each industry is helpful and important in gauging if an industry is investable or not. [10:50]

-How to approach studying a technical industry like the semi-conductors. [14:25]

-Tracing the value chain of an industry helps you find under the radar businesses that are profitable.[18:50]

-Continuous learning and keeping up to date in the industry you're invested in should not be hard and can be boiled down to few metrics. [23:38]

Note: Timestamps may differ and are approximate, depending on your podcast player.

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

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Welcome to the Investing for Beginners podcast! Today's episode, we have another great round of listener questions coming from Spotify! Questions in this episode encompasses a wide range of topics-from taxes to financial growth metrics- all are covered and discussed in a simple way Dave and Andrew are known for so listen on!

Timestamps of the episode:

-How to file your taxes in investing. It's easier than it sounds. [01:50]

-Reliable sources of financial metrics and how to use them as each one has its own use cases. [03:23]

-Don't overthink it and just dive in. Start investing as early as possible. [10:00]

-What to do after your first investing failure. Spoiler: It will open a whole pandoras box of questions in becoming a better investor. [14:30]

-Talking about different ETF's on index funds and why its a good starting point for beginner investors.[19:00]

-Metrics to consider in measuring a businesses' growth. [21:45]

-How different growth rates depend on which life cycle a business is. [25:37]

-Why return on equity (ROE) is a good growth metric to use in increasing shareholder returns. [28:10]

-Always remember there is no one metric that fits all. Dave discusses the pitfalls of ROE. [34:44]

Note: Timestamps may differ and are approximate, depending on your podcast player.

Sources mentioned in the episode:

Stratosphere- http://www.stratosphere.io

Quick fs- https://quickfs.net

Seekingalpha- https://seekingalpha.com

Finviz- https://finviz.com

BamSEC- https://www.bamsec.com

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

Today's show is sponsored by: Factor

Head to factormeals.com/investing50 and use code investing50 to get 50% off.

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Welcome to the Investing for Beginners podcast! In today's episode we will be talking all about red flags of a businesses' financials and why we should look out for it. Red flags can either be really obvious or hidden deeper in the numbers and in this episode we will take a deep dive on each of them. Listen on as we discuss the questions you should ask yourself in encountering these red flags.

Timestamps of the episode:

-From profitable to non-profitable, a common overlooked red flag on businesses. [01:45]

-Increasing debt to equity ratio, another rising red flag that has been proven to be detrimental in the future of a business [04:00]

-Red flags are not necessarily deal breakers (mostly it is) but should make you ask yourself questions as to why it can be long term or not. [10:58]

-Why sometimes a increasing goodwill of an asset acquired can be a red flag. [14:24]

-Impairment losses are red flags and punishment for companies paying too much. It says a lot on the management's skill of doing acquisitions. [19:30]

-Serial acquirers can either be great or bad as M&A's should be value accretive. Goodwill is the one to look out for on these companies. [28:30]

-Decreasing return on invested capital (ROIC) and gross margins are another red flag of a business. [30:05]

-A plethora of red flags is not a sign to short a company. [36:10]

Note: Timestamps may differ and are approximate, depending on your podcast player.

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

Today's show is sponsored by Factor:

Head to factormeals.com/investing50 and use code investing50 to get 50% off.

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Welcome to the Investing for Beginners podcast! Today's episode will all be about beta, causation and correlation in the stock market! It's quite a technical topic as it is hard show numbers through the podcast but we will do our best as always to piece it together as simple as possible. Listen on as we take a deep dive into volatility, what drives a stock price and more!

Timestamps of the episode:

-What is Beta and how is it being used in the stock market? [01:53]

-Volatility and risk are not the same and will never be. [05:55]

-Using Beta as part of your hurdle rate. [13:16]

-The seemingly random relationship between causation and correlation in the stock market. [15:50]

-How index funds and sector ETF's affect a particular stock price. [19:56]

-What really moves a stock price up and down? [21:26]

-The stock market in the short term is a voting machine, and in the long term it is a weighing machine, a timeless Graham quote. [24:20]

Note: Timestamps may differ and are approximate, depending on your podcast player.

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

Today's show is sponsored by:

Rocket Money:

Stop throwing your money away. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to RocketMoney.com/BEGINNERS.

Babbel:

Get 55% off your Babbel subscription at Babbel.com/BEGINNERS.

Shopify:

Sign up for a one-dollar-per-month trial period at SHOPIFY DOT COM SLASH “beginners”, ALLLOWERCASE. Go to SHOPIFY DOT COM SLASH “beginners” to take your business to the next level today.

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You can find the transcript of today's show below:

IFB298-Causation-is-not-CorrelationDownload

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Welcome to the Investing for Beginners podcast! In today's episode, we have a bunch of great listener questions and this time its from Spotify! A great feature to connect listeners and hosts so keep the questions coming! The episode today will revolve around a few important topics namely the timing of your investments, time horizon, portfolio allocation and more so listen on!

Timestamps of the episode:

-Is it too late to invest in your Roth IRA? [02:10]

-Your investment time horizon dictates your portfolio mix. [05:40]

-Being scared in investing vs investing the money you can't afford to lose. [08:38]

-Is there even a safe way to invest? [12:51]

-There is no magic number in portfolio allocation. It is whatever that makes you sleep well at night. [15:17]

-It's always the consistent habit of putting money to work that compounds wealth. [20:13]

-Taking profits out of your ROTH IRA's, is it sensible to do it now? [20:42]

Note: Timestamps may differ and are approximate, depending on your podcast player.

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

Today's show is sponsored by:

Rocket Money:

Stop throwing your money away. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to RocketMoney.com/BEGINNERS.

Babbel:

Get 55% off your Babbel subscription at Babbel.com/BEGINNERS.

Shopify:

Sign up for a one-dollar-per-month trial period at SHOPIFY DOT COM SLASH “beginners”, ALL

LOWERCASE. Go to SHOPIFY DOT COM SLASH “beginners” to take your business to the next level today.

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You can find the transcript of today's show below:

IFB297-Listener-QADownload

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Welcome to the Investing for Beginners podcast! We have another great listener episode! As always, we love hearing from you guys and ask us questions. Today's listener episode will be about dollar cost averaging, sizing your bets and everything you need to know about 401k investing! Listen on as Andrew and Dave give their insights especially on the right ways to correctly size your bets and why you should or not trim your winners.

Timestamps of the episode:

-How to use dollar cost averaging (DCA) in spreading your bets on the best opportunities. [02:14]

-Don't give in to the itch of trying to find the next best idea as sometimes you can find it really close by. [07:55]

-Where to find more info on the funds offered in your 401K and how to approach them. [09:10]

-Universal rules in 401K investing and why every beginner should know about this. [11:56]

-How to correctly size your bets in your investment portfolio. [15:15]

-Should you let your winners run? or trim until your stomach can manage? A good problem to have.[21:10]

-A pitch on Andrew and Dave's amazing newsletters. [27:05]

Note: Timestamps may differ and are approximate, depending on your podcast player.

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

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You can find the transcript of today's show below:

IFB296-Listener-QA-–-Dollar-Cost-Averaging-Portfolio-ManagementDownload

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Welcome to the Investing for Beginners podcast! Today's episode, we will explore and think outside the box and do scuttlebutt investing! As Peter Lynch's timeless quote says, "Know what you own" scuttlebutt investing is more or less the same- you get on the ground and research the company personally. Listen on as we discuss this boots on the ground style of investing and how it can help one greatly in gaining a deeper understanding of a business plus its pitfalls also!

Timestamps of the episode:

-What is "scuttlebutt" investing and why qualitative analysis must be about thinking outside the box. [02:26]

-Always be observant of businesses around your "orbit" [05:20]

-How taking scuttlebutt investing too far can be myopic to your investing. Living in your own bubble. [10:27]

-Ways to extend your scuttlebutt bubble and reduce tunnel vision. [12:50]

-Nothing beats doing research of a company through its employees. [19:25]

-Why Glassdoor is such an important tool doing management/culture scuttlebutt. [22:27]

-Another great tool for scuttlebutting: Tegus, a professional service doing management interviews [24:05]

-Insider trading can be an unintended pitfall of doing scuttlebutt investing. [25:10]

Note: Timestamps may differ and are approximate, depending on your podcast player.

Glassdoor website- https://www.glassdoor.com

Tegus- https://www.tegus.com

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

Today's show is sponsored by Babbel:

Get 55% off your Babbel subscription at Babbel.com/BEGINNERS.

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