The Investing for Beginners Podcast - Your Path to Financial Freedom

By Andrew Sather, Stephen Morris, and Evan RaidtBusiness Investing

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The Investing for Beginners Podcast - Your Path to Financial Freedom episodes

February 20, 2018 IFB49: The Massive Potential of Undervalued Dividend Aristocrats

Welcome to episode 49 of the Investing for Beginners podcast. In today’s show, Andrew speaks to Nick McCallum from Sure Dividend.
You might remember Ben Reynolds from episode 7; Ben’s the founder of suredividend.com. Nick writes for him, and together they are starting a new podcast called the sure investing podcast. And so you know I’m kind of friends with Ben, and we’ve been going back and forth so I thought it’d be a good time to release this episode.
This interview that I’m going to do here with Nick around the same time that Ben and Nick are releasing their podcasts out into the world. It would be a great opportunity for you guys to check them out and if you’re at all interested in dividends you can listen to Ben’s interview, we did in episode 7.
Listen to today’s interview and get a lot of insights on the power of basically combining value stocks and dividend stocks and creating the best types of compounding interest and wealth that you can.
Andrew: To start off first off thank you, Nick, for coming on.
Nick: my pleasure I’m excited to be here.
Andrew: and one of my favorite articles you wrote it is called the better investment dividend stocks or growth stocks. I love that idea because especially in today’s environment everybody, and it doesn’t matter what asset class we’re talking about. Everybody wants to gravitate towards capital appreciation everybody wants to talk about what has doubled what’s tripled what’s could triple.
Obviously, we thought with all the tech stocks today we saw biotech in previous years, and we see it with the crypto, and it has fallen off a bit. But you see a lot of momentum build on itself, and a lot of that momentum when you’re talking about the stock market starts from these companies that might not necessarily be so profitable, but they’re growing at a fast rate in whatever metric Wall Street likes to use for the day.
Basically these growth stocks create really big increases in share price, and it creates a sort of craze, and you can see a lot of these different bubbles and you kind of get like that contrasted with a dividend stock where people might think that that’s maybe a little bit more boring.
Have you done any research on dividend stocks versus growth stocks and maybe what were some of the simple findings you got from that and we can kind of take that more in depth from there.
Nick: well I guess the first thing that’s worth pointing out is that the whole stigma of dividend stocks versus growth stocks is a little bit misleading because there are growth stocks that pay dividends. And there are dividend stocks that are growing, and I would say there are quite a few stocks that meet those criteria.
the research that we’ve done suggests that dividend stocks tend to be better than growth stocks and in fact, stocks with higher yields tend to perform better than stocks with your lower yields almost being equal.
Now we’ve seen evidence that says the highest-yielding quintile of stocks that performs the lowest yielding quintile stocks by about 2% per year over long periods of time. We’ve also seen evidence that says stocks that grow their dividends beats those with unchanging dividends by two and a half percent per year.
I think that that that description of stocks that grow their dividends over time is the sweet spot between dividend stocks and growth stocks and you could say you know classify them as dividend growth stocks.
I think that they get the benefits of both dividend stocks and growth stocks and they also capture other unintended benefits that aren’t characterized in another one of those other two groups.
Andrew: do you have any examples off the top of your head of some stocks that we’ve seen in the past that were able ...
36 min
February 19, 2018 IFB49:The Massive Potential of Undervalued Dividend Aristocrats
Welcome to episode 49 of the Investing for Beginners podcast. In today's show, we interview Nick from Sure Dividend. Nick discusses dividend aristocrats, among other interesting topics with Andrew.

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40 min
February 13, 2018 IFB48: When a Falling Stock Indicates a Failing Business

Welcome to Investing for Beginners podcast this is episode 48. Andrew and I are going to talk about distressed businesses or negative earnings, negative shareholder equity we’ve never really delved into that aspect of investing and kind of what to look for in companies that having falling stock prices.
We’re going to talk a little bit about maybe some cautionary tales as you’re looking for companies to invest in for your potential retirement,

* The importance of the price to cash ratio
* The impact of declining shareholder’s equity
* The impact of declining earnings
* What to look for in the financials of a falling company
* Not every falling company is failing

Without any further ado, I’m going to turn it over to Andrew as always and let him start us off.
Andrew: yeah so I mean we did a bunch of episodes on beginning with the basics. I think let’s dive in we haven’t done anything pretty technical in a while, and I always love to talk about I know some at least some of our listeners like to hear about it.
I thought maybe we could like stay relevant. Obviously there’s been a couple of things that have happened lately, and I realized in the podcast world by the time this comes out it’s going to be months old news. But we had Tesla lose taxpayers billions of dollars we’ve talked about Tesla before so I’m not going to talk about that story with the whole SpaceX thing.
But there is another one, and it’s Sears Holdings it’s on CNBC, and the media and everybody talks about the fall of retail and talks about how Amazon’s taken over that space. And then made a lot of businesses fail and it is very true, and I thought this could be one that we’ll look at a little bit deeper and see.
Because obviously if you look at the stock chart it’s been beaten down and with stocks that are being down sometimes that comes an opportunity. Because then you can buy a low price for Sears, in particular, I will look at like a basic price to cash. The price of cash is 1.8 which means if you’re buying this stock you’re almost getting the cash if the price the cash was 1.
That means let’s say you’re paying a hundred million dollars to get a hundred million dollars in cash like that’s like almost getting like free cash.
It sounds like a like a great value play, but I think you’ll find as we dig deeper into the numbers that there’s more to this story and that even though you see a couple of good metrics from a value standpoint. Because the complete picture isn’t all there than it is a cautionary tale and there are several different symptoms with Sears right now that signal a business in decline.

I think those are some of the things that you should look at when you’re looking at evaluating various stocks particularly in ones where industries are being I don’t want to say under attack or siege. But going through a lot of change so obviously retail is one of those and with a lot of change comes a lot of opportunities.
But also a lot of risks anytime you’re getting into what’s almost called like a devalue with really distressed companies it’s very important that you are differentiating between opportunity or risk.
Dave: yeah exactly and I think the big thing was Sears is you look at the evolution of the company over the last eight, nine years, and they’ve been in a kind of a scramble mode to try to figure out how to stay relevant and stay alive.
And as Andrew and I were talking about preparing for this episode tonight I was looking at just a price chart of the company in since 2009. They were at the height of 122 dollars a share and currently they’re at three dollars and 33 cents a share.
That is quite a precipitous drop the city of the least a...
32 min
February 12, 2018 IFB48: When a Falling Stock Indicates a Failing Business
Welcome to episode 48 of the Investing for Beginners podcast. In today's show, we will discuss what to look for when a company's stock price is falling and how it could indicate a failing business.

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36 min
February 06, 2018 IFB47: Back to the Basics Pt 5: Dividend Stocks and Value Investing
This is part 5 of the 5 episode “Back to the Basics” series from The Investing for Beginners Podcast. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time.
Here are the links to each of the episodes:
Back to the Basics Pt 1: The Anatomy of Stocks and Shares
–Defining what a stock is
–Talk about the big 3: the cash flow statement, balance sheet, and income statement
–Earnings manipulation
Back to the Basics Pt 2: Share Dilution on Wall Street
–What is a stock
–What are stock buybacks and how they affect us
–What are share dilutions
–What happens when we buy or sell a stock
Back to the Basics Pt 3: Stocks vs Other Investments
–Peer to peer lending
–Real Estate
–Gold and other precious metals
–Bitcoin and other cryptocurrencies
–Bonds
Back to the Basics Pt 4: Investing 101 and Compound Interest
–The importance of buy and hold
–Compound interest and how it can make you wealthy
–Using a compound interest calculator
–The power of dollar cost averaging
Back to the Basics Pt 5: Dividend Stocks and Value Investing
–The advantages of buying low and selling high
–Dividends and the power of compounding

Welcome to Investing for Beginners podcast this is episode 46. Andrew and I are going to continue talking about back to the basics. Today we’re going to follow up on we’ve finished last week talking about compound interest, dollar cost averaging and we’re going to talk a little bit more about dividends today.
Of course, that’s Andrews favorite thing to talk about, and we’ll also talk a little bit about buying low and sell high. Without any further ado, I’m going to turn it over to Andrew to get our chat started, and we’ll just go from there.

* The advantages of buying low and selling high
* Dividends and the power of compounding

Andrew: cool so dividends yes let me get started because we were looking at the backbones of it. We’re looking at you know we talked about the anatomy of stocks and what shares represent. Whether dividends and how do they relate and why are they powerful for us. Dividends are pieces of earnings that companies are going to pay out to shareholders.
It’s in my opinion which is it’s debatable because of a lot of people kind of look past this. But I see investments as the whole point of having an investment is to receive an income. When you buy an investment you are taking on a certain amount of financial risk there’s a chance that you could lose all of your capital.
There’s a chance you could be given your money the Bernie Madoff, and he’s running off with it there’s a chance that you’re putting money into a business that decides to light it on fire and goes bankrupt after a couple of years.
It’s a lot of risks that are involved, but that’s where the reward comes in. Are you’re getting you’re going to get paid for those risks back to you, and in my opinion, the most reliable source of that would be interest and income. And so we see that with loans, and we talked about that a bit. We’re discussing all the different types of investments that are out there besides the stock market it gets lost on investors,
32 min
February 05, 2018 IFB47: Back to the Basics Pt 5: Dividend Stocks / Value Investing
Welcome to episode 47 of the Investing for Beginners podcast. In today's show, we will continue our series on Back to the Basics. Our discussion will include dividends, buy low and sell high, among others.

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35 min
January 29, 2018 IFB46: Back to the Basics Pt 4: Investing 101 and Compound Interest
This is part 4 of the 5 episode “Back to the Basics” series from The Investing for Beginners Podcast. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time.
Here are the links to each of the episodes:
Back to the Basics Pt 1: The Anatomy of Stocks and Shares
–Defining what a stock is
–Talk about the big 3: the cash flow statement, balance sheet, and income statement
–Earnings manipulation
Back to the Basics Pt 2: Share Dilution on Wall Street
–What is a stock
–What are stock buybacks and how they affect us
–What are share dilutions
–What happens when we buy or sell a stock
Back to the Basics Pt 3: Stocks vs Other Investments
–Peer to peer lending
–Real Estate
–Gold and other precious metals
–Bitcoin and other cryptocurrencies
–Bonds
Back to the Basics Pt 4: Investing 101 and Compound Interest
–The importance of buy and hold
–Compound interest and how it can make you wealthy
–Using a compound interest calculator
–The power of dollar cost averaging
Back to the Basics Pt 5: Dividend Stocks and Value Investing
–The advantages of buying low and selling high
–Dividends and the power of compounding

Welcome to Investing for Beginners podcast this is episode 46. Andrew and I are going to continue our series on back to the basics, and today we’re going to talk about buy and hold and why that’s important. As well as compound interest and some other interesting topics. So without any further ado, I’m going to turn it over to Andrew, and he’s going to start off our chat.

* The importance of buy and hold
* Compound interest and how it can make you wealthy
* Using a compound interest calculator
* The power of dollar cost averaging

Andrew: If you’ve read any investing books and gotten involved with the whole scene, these are a lot of the things that are similar themes. I’m hoping with these episodes that we’re going at such an in-depth level that you’re still picking up things that are valuable.
The whole goal of this is to get things to stick. Because it’s one thing to hear something but if you can take these basics and master them– give yourself the reasons why and give yourself not just the how but the why. Give yourself a firm foundation and understanding on why these things are applicable and why, when things get tough, you’re going to have these values to stick to. It’s important to get this mastery rather than just floating through the wind, and when adversity comes, if you don’t have this foundation you might forget about all these lessons or you just might be stubborn and not listen to what’s been proven.
And this kind of like conventional logic when it comes to the stock market and investing and so I think it really can have a big impact on your final results as you navigate through the stock market.

I think that applies whether you’re an absolute beginner or even if you are more seasoned. Getting these lessons drilled and mastered can go a long way. I would recommend going through them I think there’s a lot of good value here and obviously, today even if you’ve heard that you should buy and hold or you should diversify or you should dollar cost average.
52 min
January 22, 2018 IFB46: Back to the Basics Pt 4: Investing 101 and Compound Interest
Welcome to Investing for Beginners podcast, this is episode 46. In today's episode we are continuing our series on Back to the Basics.

Learn more about your ad choices. Visit megaphone.fm/adchoices
56 min
January 15, 2018 IFB45: Back to the Basics Pt 3: Stocks vs Other Investments
Welcome to episode 45 of the Investing for Beginners podcast. In today's show, we will return to our continuing series of Back to the Basics. Today we will discuss some of the different asset classes out there.

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53 min
December 29, 2017 IFB44: Back to the Basics Pt 2: Share Dilution on Wall Street
This is part 2 of the 5 episode “Back to the Basics” series from The Investing for Beginners Podcast. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time.
Here are the links to each of the episodes:
Back to the Basics Pt 1: The Anatomy of Stocks and Shares
–Defining what a stock is
–Talk about the big 3: the cash flow statement, balance sheet, and income statement
–Earnings manipulation
Back to the Basics Pt 2: Share Dilution on Wall Street
–What is a stock
–What are stock buybacks and how they affect us
–What are share dilutions
–What happens when we buy or sell a stock
Back to the Basics Pt 3: Stocks vs Other Investments
–Peer to peer lending
–Real Estate
–Gold and other precious metals
–Bitcoin and other cryptocurrencies
–Bonds
Back to the Basics Pt 4: Investing 101 and Compound Interest
–The importance of buy and hold
–Compound interest and how it can make you wealthy
–Using a compound interest calculator
–The power of dollar cost averaging
Back to the Basics Pt 5: Dividend Stocks and Value Investing
–The advantages of buying low and selling high
–Dividends and the power of compounding

Welcome to the Investing for Beginners podcast this is episode 44. Andrew and I are going to continue our discussion on back to the basics with the stock market and last week we talked a little bit about stocks and today we’re going to talk some more about stocks. Because you know that’s our favorite thing to talk about besides that baseball and so without any further ado Andrew ahead something you wanted to say as we got started.

* What is a stock
* What are stock buybacks and how they affect us
* What are share dilutions
* What happens when we buy or sell a stock

Andrew: yeah so obviously last week I had a big thing about you know how shares kind of work and the whole premise behind the stock market. Behind why Wall Street’s there what the value is and how it provides value for really the whole world and how we can take part in that.
I think the next thing that we should really cover is how that applies to Wall Street today so obviously Wall Street’s very intimidating and it can seem like if you don’t have a double-double MBA and in finance that there’s no way that you can really have a shot at understanding it and making it work for you, and that’s so far from the truth and everything we try to do with this podcast is really to try to alleviate that and especially with this series that we’ve come up with here with going back to the basics.
We’re really hoping when you can go from just the average person who might not know anything and really start to put some of the pieces together and use that momentum and it can really take you in some far places and so it was really exciting to be kind of a part of that so with the whole discussion last week I talked about how company issues shares and how they can use those share you know they can essentially it’s called raise capital you hear this a lot in Silicon Valley and yeah you know on Shark Tank and with private equity it’s really a place for companies to incubate and get a jump start and go from either they’ll go from nothing to something with a great idea...
36 min

About The Investing for Beginners Podcast - Your Path to Financial Freedom

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The Investing for Beginners Podcast teaches you how to buy your first stocks and build long-term wealth in the stock market— without the hype or confusing jargon.