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

October 28, 2017 IFB36: Should You Buy Tesla Stock in this Bull Market?

Welcome to Investing for Beginners podcast this is episode 36, I’m David Ahern, and Andrew Sather’s here as well. Tonight we’re going to talk about Tesla.
Tesla’s going to be our whipping boy tonight, so I’m going to start off by chatting a little bit about an article that Andrew forwarded to me. He subscribes to the Stansberry digest, and Porter Stansberry is one of Andrews mentors and one of his favorites
He sent me this email a few weeks ago that was kind of awesome, and it talks a lot about Tesla. So I thought that would be a great place for us to start and we’ll just kind of riff off of that.
So I wanted to talk a little bit about just kind of quote here from the article real quick and then we’ll kind of get into it as Porter says.
“As we explained many times. It’s not that we have a problem with the electric carmaker’s products rather it’s Musk’s questionable ethics and the fact that it’s simply a terrible business Tesla has missed virtually every manufacturing deadline and sales target it has ever set.
It loses money on every car it sells, I’m going to say that again it. Loses money on every car it sells. despite forcing taxpayers to subsidize a huge portion of the cost and has burned through nearly 10 billion since 2012, 10 billion, holds another 10 billion in debt and has never ever turned a profit.
And yet somehow we’re supposed to believe the company is worth more than 56 billion today. I believe it is the largest by market cap automaker in the United States as we speak today.”
Which is just obscene, so I think those facts kind of speak for themselves. But I know Andrew has a few things you’d like to say about this, and we’ll get going
Andrew: oh yeah, I mean that fires me up, so it was a very timely email to because one was it back in October 3rd, so that’s when I got this email from them. And then today it’s the 14th when we’re recording this, and it’s big in the news right now that Tesla just laid off 400 workers.
So when you talk about like the whole ethics of Tesla, the company and you know obviously we’re going to get into the financials and the valuation and the stock price and how all of that relates to itself. And so you have to know just like we talked about with snapchat and one of our previous episodes just like we’re always pounding the table about how there are these bubbles.
There’s been bubble mania, tulip mania all these sorts of things that we’ve seen historically and Teslas like a spitting image of that. Today with the way that its stock price has gone and what it’s continuing to do despite the fact that like you just said they are losing money.
Not only from a complete earnings perspective as far as total annual earnings but their car sold. That’s kinda ridiculous, and that’s bad, and a reason that I have such a big problem with it is not only is it against what I how I try to invest.
Obviously, I’m always we’re always talking about going for a margin of safety with the emphasis on the safety. So preservation of our capital is number one, we’re trying to get into these companies that are very strong financially, and Tesla unchecks all those boxes. It’s not in a great strong financial position, it’s not creating lots of earnings and profits and dividends for its shareholders.
Not only that but there’s like the email said there’s like a moral, ethical side to this that that’s not discussed much. And you know I’ll be far from the first person to say that I’m some altruistic guy who has great intention. You know I’m not like the Pope okay, I’m very, very selfish and a lot of the things I do are very stuff selfishly motivated.
33 min
October 27, 2017 IFB36: Should You Buy Tesla Stock in this Bull Market?
Welcome to episode 36 of the Investing for Beginners podcast. In today's show, we will discuss whether investing in Tesla is a good investment or not.

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37 min
October 20, 2017 IFB35: A Thorough Breakdown of the Dividend Discount Model
Welcome to episode 35 of the Investing for Beginners podcast. In today's show, we will break down the dividend discount model for you.

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41 min
October 13, 2017 IFB34: The Truth about Analyst Reports Interview with Sasha Evdakov
Welcome to episode 34 of the Investing for Beginners podcast. In today's episode, we will discuss analyst reports with Sasha Evdakov of Tradersfly.com.

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38 min
October 06, 2017 IFB33: Before Investing in Real Estate… Check out REITs

Welcome to Investing for Beginners podcast, I’m David Ahern, and Andrew Sather’s here tonight. We’re going to talk about REITs. We have episode 33 tonight, and we’re going to talk a little bit about REITs.
What we will learn today:

* What a REIT is
* How to value them, hint: the same way as any other stock
* How a REIT can help your portfolio
* REITs can give you exposure to the real estate asset class
* How to treat dividends in REITs from a tax perspective
* Whether or not they are a good investment for you.

We had a listener comment on our podcast earlier a couple of episodes ago, and we wanted to go ahead and answer his question and speaking of answering this question. Andrew has his comment up, and he wanted to go ahead and get us started.
Andrew: yeah so this is from Bart. He says this was a comment he left on the blog on one of the episodes.
He says “guys love the show. The quick question whether your thoughts on REITs, they seem to pay high dividends but is there a catch?”
So maybe we should start off and introduce what a is REIT. Its REIT stands for Real Estate Investment Trust; it is basically like it says in the title it’s a trust and it usually holds a portfolio of real estate different properties. And there are different categories that you can see when it comes to these.
Some of them will hold commercial real estate so think the malls and office buildings and the real estate that’s attached to those. Some of them do residential real estate, there are other types which I don’t know the nitty-gritty on all of them. But there are quite a few different industries around REITs. And so basically they hold these basket of real estate properties, and they hold them and their income-producing properties.
Then what the owners will do is they’ll reallocate those whatever income comes from the trust then gets distributed to shareholders.
So it works like a stock as in you can buy it in the stock market on an exchange. You can see that price go up or down you get paid a dividend based on what the earnings are, and so it has a lot of similarities to stocks, but it also has some technicalities which I think we can get into as.
Dave: well yeah they’re they’re interesting, they’re different beasts for sure. They’re you know the valuations of them are a little different than other regular stocks. Just because of the way that they’re set up.
And you’re right on the money about the different types of REITs and you know I’ve read different things about REITs in some information about them and you know I’ve seen different blogs and listen to podcast people talking about them. Preston and Stig, two of our favorites had a great interview; I guess another interview I’m sorry they had a question-and-answer session not too long ago that Andrew was telling me about before we went on air.
That they talked a little bit about REITs on there well, and they had some great comments on the REITs as well. And so there’s a lot of great information out there about REITs and you know the thing that I kind of like about the REITs is I remember when I was a young kid my dad told me once that land was one of the greatest investments you could ever have because it’s a tangible asset. And it’s something you can always own.
Being somebody that’s not coming from a lot of wealth you know having the wherewithal to buy large plots of land to just kind of sit on and try to recoup that money at some point in the future is not something that’s really kind of in my nature.
The whole buying the house thing and flipping thing that’s just not me but REITs gives you that. The cool thing about them is they can give you a kind of an entry level into having a bit of real estate in your portfoli...
31 min
October 06, 2017 IFB33: Before Investing in Real Estate... Check out REITs
Welcome to episode 33 of the Investing for Beginners podcast. In today's show, we will discuss REITs and whether or not they are a good investment for you.

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35 min
September 29, 2017 IFB32: An Example Buy and Sell Stock Checklist
Welcome to episode 32 of the Investing for Beginners podcast. In today's show, we discuss stock checklists and the importance of them.

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53 min
September 29, 2017 IFB32: An Example Buy and Sell Stock Checklist
Welcome to episode 32 of the Investing for Beginners podcast. In today's show, we discuss stock checklists and the importance of them.

Learn more about your ad choices. Visit megaphone.fm/adchoices
54 min
September 22, 2017 IFB31: Millionaire Jobs: Interview with the Engineer Who Did it in 10 Years
Welcome to episode 31 of the Investing for Beginners podcast. In today's show, we will be discussing how to become a millionaire in 10 short years. In this episode, we are interviewing Justin from rootofgood.com, who has found financial freedom at a very young age.

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48 min
September 16, 2017 IFB30: Quotes of Wisdom from Baupost Group’s Seth Klarman

Welcome to investing for Beginners podcast I’m David Ahern, and we have Andrew Sather here as well tonight. We’re going to do a review of an article that I came across from a blog that I read on a daily basis.
It’s called the Acquirers Multiple, and it is owned by a gentleman named Tobias Carlisle. He’s a very very amazing writer, and he’s written some great books. And he has this blog that he’s a member of that one of his authors that work for him writes some great articles.
The article that I came across I shared it with Andrew a couple of weeks ago, and we both liked it, and we thought this would be a great opportunity for us to talk a little bit about a gentleman named Seth Klarman.
We’ve talked about him a little bit in the past before, but this article that was written kind of outlines 13 tips on how to find bargains. Seth Klarman if you’re not familiar with him has written an amazing book on the margin of safety, and it’s unavailable more or less. You can buy an Amazon I believe for a cool thirteen hundred dollars a book if you wish.
Apparently, he did not release a lot of copies of the book and so it’s very very rare and hard to find I was fortunate enough to be able to find it. I read it through the professor of the local college had it, and the finance professor was kind enough to allow me to borrow it to read it. Andrew and I are going to kind of pick and choose through the tips that the gentleman shared in this article.
It’s a commentary from the collected wisdom of Seth Klarman, and it’s a compilation of quotes from the by Baupost Group founder Seth Klarman.
He writes an annual letter just as Warren Buffett does, but it’snot available to the public. It’s usually only available to his you know the people the insiders the people that invest in his fund.
What we will learn in today’s episode:

* How to find a Margin of Safety
* You need to do your research to find great companies
* Be patient and wait for your pitch
* Buy low and sell high, look for fear and greed in the market
* Don’t try to time the market, look for your value and buy with a margin of safety

So I’m going to read a couple of the quotes and talk a few minutes about them and then Andrew is going to do the same. I also will link to the article in the show notes for this episode so that you will be able to find this article and read through them as you wish and find some things that you might like.
The first one that I came across that I liked was
“great investments don’t just knock on a door and say buy me.”
That is so true, and they do not just stand up and say hey here by me I’m cheap I’m going to make you tons and tons of money. It takes work to find great investments; there’s a lot of due diligence that you have to put into to be able to find a great investment.
You know Andrew, and I talked a lot about you know buying with a margin of safety, and this is a huge proponent of Seth Klarman’s investment philosophy, and there is a lot of effort that takes to go to find these bargains or these gems if you will. They’re not things that are readily available or that just kind of leap out at you.
A lot of times you have to look under a lot of rocks to try to find you know the one that you like and I think that’s a great quote and that struck me when I read the article that was one of the first things that kind of jumped out at me.
26 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.