The Investing for Beginners Podcast - Your Path to Financial Freedom

The Investing for Beginners Podcast - Your Path to Financial Freedom

By Andrew Sather, Stephen Morris, and Evan RaidtBusinessInvesting
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The Investing for Beginners Podcast - Your Path to Financial Freedom episodes

  • IFB41: What I’ve Learned from My Biggest Stock Losers Up to This Point
     

    Welcome to Investing for Beginners podcast, I’m Dave Ahern, and Andrew Sather is here with us as well. Welcome to episode 41, tonight we’re going to talk to Brad Conway who’s coming all the way from merry old England. Brad is a newer investor, and he’s got some great questions for us tonight.
    So without any further ado, I’m going to hand it over to Andrew and Brad. A special note I had some audio difficulties with my speaking tonight, my computer was not working so I had to use my phone. So the audio quality for me will not be so great, so I apologize for that in advance, thank you for your patience, and I hope you guys enjoy the show.

    * How trailing stops and the best ways to utilize them
    * Lessons we learned from our stock losers
    * Margin of safety, emphasis on safety
    * Debt to equity, price to book and other important metrics

     
    Brad: excellent yeah, thanks, Dave. So the first question and I want to ask is around stopgaps and there are you know listen to all the podcasts and you talk about I believe you said it’s 25% less of the value that you bought it out of stock and we’re on though is when that gets triggered and are you instantly just selling or do you do little bit of digging around what’s the reasons behind that?
    Andrew: so this is very personal depending on how people want to utilize trailing stops I’ve talked on the podcast in the past about how I split my portfolio into two.
    So I have the part of the portfolio that’s strict with trailing stops and then the part that is more of like what you’re talking about where if something goes wrong I’m going to dig into a deeper look to see if the stock price that’s fallen is really because of bad fundamentals, bad company financials, or if it’s just because the crowds kind of lost their mind.
    In a sense where they’ve had pessimism, but you know that from a fundamental standpoint it’s just temporary and that the company will be able to recover over the long-term health. If the company is not compromised when I saw when I do trailing stops I stick very strictly to those and that is because I’m making that portfolio I talk about how sometimes it’s a little bit more risky in the sense that I’ll maybe chase stocks with less of a track record of like growing the dividend for example.
    Maybe less stability, I’ll get more of more of the margin part of the margin of safety but always within the context of having a good balance sheet, having low debt. So because that’s the parameters of those stocks that I’m picking, then I’m super strict to the trailing stop.
    It’s once the end of day closes at 25% loss or greater then I’m selling that next business day. Other people can kind of look at trailing stops in a different way you can approach trailing stops differently if you’re let’s say like another way that I could see somebody doing it that would work out well.
    Would be to do trailing stops and be flexible on the upside and not the downside. So what I mean by that is let’s say a stock just went straight down 25 percent when you bought it don’t you know that you that trailing stop is there to protect your downside. So don’t let that like don’t debate it at all just follow the challenge stop at that point.
    But let’s say your stock went up 50% and then lost 25%, maybe at that point you want to say okay well I’m already up on the position I don’t have to be as strict necessarily.
    I’m protecting my downside because the stocks already made such a great profit and then kind of dig in from there and see okay do I see this as just a short obstacle that I will eventually overcome and that the company will eventually overcome, and so it turns out I was right with the pic,
    49 min
  • IFB40: Top 7 Money Tips from The Richest Man in Babylon Audio Book

    Welcome to Investing for Beginners podcast, this is episode 40 in which Andrew and I are going to talk about “The Richest Man in Babylon” a book that was written by George S. Clasen.  This was written back at, but we even know the 30s is that correct?

    * Learn to save money
    * Put your money to work for you
    * Find a way to increase your income, either from a side job or a raise at work
    * Use compounding to your advantage

    Andrew: yeah man I don’t have a clue, hopefully, glean something out of it.
    Dave: okay fair enough, so we’re not exactly sure when the book was written without having it in front of us. Yeah but it’s one of the easiest books to read, and it is amazingly insightful, and it has a lot of great advice about personal finance.
    And it was one of the first books I read when I started digging into investing in kind of personal finance. And again the name of the book was ">The Richest Man in Babylon, and we’re going to talk about the seven cures for fattening the purse.
    So he has seven different cures that Andrew and I are going to go through and talk a little bit about so I’m going to have Andrew go ahead and start us off with number one.
    Andrew: Yeah, I mean I think everybody out there who wants to complain about finances. If sees himself in as a tough situation and wants to crawl out of it should read this book and listen to this episode over and over again.
    Because a lean purse I mean you can just see that imagery and when you hear those words and this very powerful love. The ancients you know these dislike very ancient mythological kind of theme that he put to this book.
    So and yes it was one that I also recommend it, I recommend it in my Seven Steps to Understanding the Stock Market. I have a post where I recommend various investing books, and this is definitely up there it was one of the first I also read and just picked it up. Probably didn’t put it down until I finished reading through, it’s an easy read, and that’s super insightful, and it can inspire you because then you feel like you know what to do next because that’s the thing about a lot of these concepts we like to talk about on the podcast.
    If you’ll notice Dave and I will focus more on timeless principles rather than you know what’s what was hot on CNBC yesterday I think there are certain principles and fundamental philosophies and foundations that really will work no matter if it’s 2017 or if it’s 3017.
    You know what I mean it’s just one of those things and we’ve seen it like you say I think is the 1930s. I’ll put them through the book looks like he has versions from late 1920, the 1930s and 1950s. Even so, I’m sure there’s plenty of versions of this book, so this is something that you know they say when you talk about books. The longer, the older the book is, the more valuable it probably is.
    Because if people are still talking about it today I mean just really stood the test of time and The Intelligent Investor is o...
    34 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.

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