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

April 12, 2017 IFB11: A Complete Guide to the Most Useful Stock Valuation Methods
Using stock valuation methods to discover and screen for great companies is a great way to find investment opportunities. In this session, we will talk about seven of the stock valuation methods that we use to help us be better investors.

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1 hr 9 min
April 05, 2017 IFB10: Making a Quant Investing Approach Inspired by Baseball Sabermetrics
Baseball and value investing have more in common than you would think. The study of numbers or sabermetrics has had a huge influence on baseball. Similarly, there has been a tremendous influence from quant investing in value investing. Warren Buffett is a very big fan of baseball and he has used that influence to adapt several philosophies from baseball to his investing.

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40 min
March 29, 2017 IFB09: Myths about Dividend Paying Blue Chip Stocks
In today's session, we look at the definition of a Blue Chip stock and how the dividend's that you collect from these companies can help grow your wealth. We also look at whether a company is shareholder friendly or not nad how this can affect you.

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41 min
March 22, 2017 IFB08: Debunking Flawed Efficient Market Hypothesis Assumptions
In this session, we discuss the efficient market hypothesis and discover what their theories are. We also look at the efficient market hypothesis assumptions and how we think they are wrong. This will be a lively discussion. If you have any question you would like answered, please reach out to us.

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46 min
March 15, 2017 IFB07: Creating Portfolio Income with Ben Reynolds from Sure Dividend

Creating portfolio income is one of the main reasons we all invest. There are many ways to create that income. One of the best ways is utilizing dividends. These payouts from your investments are one of the leading ways to create portfolio income for your retirement or hopefully, before that.
Tonight we have the extreme pleasure to have a conversation with Ben Reynolds of Sure Dividend. Ben is one Andrew’s and I’s favorite writers and his work is a must-read for anyone even remotely interested in dividend investing. The writing is very easy to read and he provides tremendous value with each analysis that he does. Ben focuses on companies that pay dividends and his real passion is helping investors create portfolio income through these dividend payers.

* Having a long-term horizon
* Discovering the important ratios of dividend investing
* the importance of dividend aristocrats
* A new take on dividend reinvestment
* ETFs or individual stocks
* How to start dividend investing
* 8 rules for dividend investing

He has two newsletters that he writes that focuses on different aspects of the dividend investing world. Sure Dividend is for his subscribers that have a longer time horizon and the Sure Retirement that is for those who are looking for higher yields. We will discuss these in much more detail in our interview.
This was a treat for me as I was able to be the moderator and ask the questions. Then just sit back and listen to Ben and Andrew go back and forth.
Here is our interview with Ben.
Enjoy.

Dave: How did you get interested in dividend investing?
Ben: I have been interested in investing, since basically when I finished college. I have always been interested in finance from a very early age. I got interested in dividend investing in particular when I started researching market anomalies. You probably have heard of some of them. Like the value investing effect or low price to earnings stocks. Or the low-volatility effect where low-volatility stocks have outperformed high-volatility stocks.
There are all these market anomalies and one of them is that dividend-paying stocks have outperformed non-dividend paying stocks over a very long period of time.
And that really stood out to me. And I thought it would be interesting to combine dividend investing with some of the other market anomalies that I was just discussing.
Dave: How did you come across that information?
Ben: One of the courses I took in college was on market anomalies. And it was a really interesting course and that’s what really got me interested in it.

Dave: Tell me a little bit about your background.

Ben: My degree in college was in finance and then after graduation, I worked a couple of different jobs. One of them was in logistics in a third-party warehouse. I did sales there, it wasn’t quite with my degree but my passion was with investing and I was constantly reading about investing.
And from there I started writing a lot about investing and then started Sure Dividend from there. It has really been my outlet for learning about investing and hopefully telling people about it.
Andrew: So you escaped the academic route of efficient market hypothesis? So you were able to somehow avoid that trap?
Ben: Yes, that is when I really started to get interested in it. When seeing that wasn’t really accurate because to me investing is as interesting if you can’t or only do average. That doesn’t sound exciting. But when you discover that there are lots of inefficiencies and y...
42 min
March 15, 2017 IFB07: Creating Portfolio Income with Ben Reynolds of Sure Dividend
Today's session will discuss the creating of portfolio income with dividend expert Ben Reynolds of Sure Dividend. In this session, Ben explains how dividends work, what the best dividend stocks to invest in and much more.

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46 min
March 08, 2017 IFB06: 4 Things the Financial Services Industry Will Never Admit
Find out what 4 things the financial services industry will never admit to. Just because they manage your money doesn't mean the financial services industry isn't out to make themselves richer.

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27 min
March 01, 2017 IFB03: Doesn’t a Stop Loss Contradict Buy and Hold?

When you are looking for advice on how to buy stocks, you will find thousands of articles on the internet. All of them touting the various ways to buy stocks to make money. But what about selling a stock? Crickets. There is not much out there to tell you when to sell. Having an exit strategy when you sell is almost as important as your buy strategy. This is where having a stop loss is so vital to your success. What is a stop loss? It is a set point that you establish as your base point for selling a stock if it starts to fall. The best advice I have seen is setting the stop loss at 25%. Setting the stop loss point here helps eliminate some of the guesswork. And it avoids any impulse sells in a case of sudden movement down.
In today’s session, we will discuss the stop loss and much more.

* Setting Trailing Stops

* Yahoo Finance for Stop-Loss alerts

* Portfolio maintenance

* Selling stocks to limit your portfolio to 25 stocks or less

* Best strategy to buy stocks, dollar amount or share amount

* Dividend reinvestment program or DRIPs explained

* Lump sum investing or dollar-cost averaging

* Investing outside the US

How do you set a trailing stop? Do you do it with the brokerage or on your own?
Andrew: There are lots of different trades that a broker will offer. A very common one that you might have seen was the stop-limit. What that is basically, you put in whatever you want the price to stop-limit to trade into. And once the stock hits, and in some cases, it doesn’t even need to hit it exactly. The broker will prioritize all their different trade orders. And when it gets close to that price it will execute that trade for you.
When I refer to the trailing-stop in my eletter it’s something I actually don’t recommend inputting to the broker.
For several reasons because the broker will choose buys and sells. You will see this all the time with your broker. Say for example you put in a buy order for $45. And when you look at the actual trade a day later it won’t match the $45 exactly. It will depend on how many shares you buy, who is on the other side of the trade.
There are a lot of things that go into making a trade that we don’t know see because everything is basically on the computer now. But there is always a buyer or a seller that is on the opposite side of your trade. So your broker isn’t always able to make that a one for one exchange. So what they will do with a stop limit. And how that can be problematic if you are putting that into your brokerage account is that they may execute a trade that is not at the price you wanted.
Another thing too is things like flash crashes can activate those prematurely.
I like to recommend putting a trailing-stop in at end of day prices. Because we have seen in 2010 where there was a computer glitch that had to do with the high-frequency trading algorithms. And they caused the stock market to crash at a very accelerated rate in a very short period of time. So if you have stops into the broker they are going to execute those and that’s not what we are trying to do.
The approach I try to preach is a long-term approach. When the media likes to demonize high-frequency trading. And make you feel like the stock market is rigged against you. But, really the people that don’t get affected by those are the people that hold for the long-term.
So we are going to try to hold for the long-term. And put a trailing stop on it. And the way that I do it is to put an alert on
25 min
March 01, 2017 IFB02: Why Timing the Market Wrong Doesn’t Matter that Much

One of the scariest things about investing is buying a stock at the absolute wrong time. Guess what? Timing the market wrong doesn’t matter that much. What is much more important is the time in the market. You read about all the stock market millionaires. Or billionaires. Guess what they all in common? It’s time in the market, not when they purchased the stock. Or at what price. So timing the market wrong really doesn’t matter.
Welcome to the show notes for Investing for Beginners. In today’s session, we answered questions from Braden. A beginning investor from Canada. He had some really great questions for us today. And the focus of the show was on several subjects. First being dollar cost averaging. This is a great investment idea that can help smooth out your returns. And help get you started in the circumstance that you don’t have a lot of money to start with. Fun fact. If you invest in a 401k through work. You already do this!
Next focus item was valuation metrics. These are the numbers that are used to help determine the value of a company. Numbers can be scary for people. But Andrew does a great job of explaining how they work. His ebook helps lay this out. In a very easy to understand way.

* Fees associated with dollar cost averaging and how to minimize them with this strategy

* DIY brokerages moving to free ETF trades and will bigger brokerages offer this as a way to keep their customers

* Explain in more detail the metrics P/E, P/B, P/S, and D/E and what are good standards for these numbers?

* Talk about the importance of putting your money in the market

* Recommendations for options using stocks that pay a dividend but it isn’t enough to buy a full share.
* How to utilize DRIP compounding

I have to say that the quality of questions that we have been receiving is awesome. They have been insightful, thoughtful and probing. Certainly not what you would expect from beginners. They have made us think and delve deep into our answers to help make sure that we cover all aspects of their questions.
So let’s take a look at the Q/A.
Fees associated with dollar cost averaging. How to mitigate those fees with this strategy?
Andrew: First a few questions for you. What are the commission fees? The fees are lower because I use them through my local bank here in Canada and it is $7 a trade. Braden is looking at an annual rebalance on his retirement account. As well as maxing out his individual retirement account using the dollar cost averaging strategy.
The reason for these questions is so that I can get a sense of how much money we are talking about. The amount of money that we contribute will have a bearing on how much of percentage the strategy takes out of our investments.
I will start by talking about my eletter portfolio that I follow and I have my readers follow. It is something that I prescribe to and have a big chunk of my life savings in. This puts in $150 a month and I am trying to show that the average person can do it with a small amount and make it great.
I pay $4.95 a trade and with a $150 investment I am losing out on about 2 to 3 percent, which is not ideal because that is a year’s worth of dividend payments. But for something that is such a long-term outlook and a lot of the positions I have recently closed have been gains much higher than 10 to 20 percent so that 3 percent bump doesn’t hurt me that badly. And because I am much younger. I have a longer time horizon so I can see the length of the i...
43 min
March 01, 2017 IFB01: Optimal Portfolio Diversification for Sectors and Individual Stocks
Having optimal portfolio diversification for beginners is one of the most difficult strategies to understand. We will discuss this and much more in this session

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49 min

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

From the publisher's feed

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.