Portfolio Management Part 1! How should you allocate capital? Should you own 50% in stocks and 50% in cash? Let's explore the concept of asset allocation in value investing.

We introduced DCF in the previous episode. Let's go over its formula in detail!  

DCF is a widely used metric in the investing community. It is a more robust measurement of the value of a business by taking into account revenue growth projections. Enjoy!

Price to Book (P/B) is another valuation metric analysts use to determine how cheap or expensive something is. Let's have a look!

Price to Free Cash Flow (P/FCF) is a valuation ratio that analysts use to examine the price of a company relative to the free cash it is generating. To put it simply, if a company is easy to understand, has durable competitive advantage, ran by an honest group of people, AND has low a P/FCF ratio, it is definitely worth taking a more serious look. So let's check out what P/FCF is all about about.
   

Let's explore PE in detail. PE is one of the first valuation ratios analysts use to determine how cheap a stock is. It is easy to calculate and useful for quick and easy valuation but there are some downsides to it. Let's check it out!

The second half of the checklist! It will be much easier to follow along if you have our checklist in front of you. Please reach out to us at [email protected] to get a copy!

As covered in the previous episode, using a checklist is a great way to stay disciplined in one's investment process. It is easy to forget things and you can quickly become sloppy in your analysis. In this episode, we discuss the questions that are in our checklist. Enjoy!

Using a checklist is important for a disciplined investment process. It allows us to make sure we cover all the grounds before coming to a conclusion about an investment opportunity. In this episode, we are talking about the importance of using a checklist and the key questions you should be asking yourself as a value investor.

Portfolio management is the process of selecting and managing a group of investments, called a portfolio, that fit your goals, risk tolerance and investment style. Diversification is a key part of portfolio management. It is the process of spreading your investment money across a variety of different investments. This can help reduce the risk of losing money if one investment goes down in value. A well-diversified portfolio will have a mix of different types of investments, including stocks, bonds, and cash.

Episode Outline

(00:00) Introduction

(01:36) Diversification

(05:49) Mutual Funds

(10:38) Fundamental Analysis

(14:26) Conclusion

Value Investor Chatter

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