Understanding stock valuation is crucial for investors. In this episode of the Investing for Beginners podcast, we explore valuation basics, stock-based compensation, and why Warren Buffett emphasizes buying stocks like he buys socks—when they're on sale.

• [00:00:50] Introduction to valuation and stock-based compensation concepts.
• [00:01:11] Buying stocks means owning part of a business.
• [00:01:33] Valuation determines if a stock's price is fair.
• [00:02:30] Importance of paying a good price for stocks.
• [00:03:16] Warren Buffett buys stocks like socks—when they're discounted.
• [00:03:42] Various methods exist for valuing companies.
• [00:04:18] Discounted cash flow models project future cash flows.
• [00:05:17] Free cash flow models analyze cash flow statements.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners.

Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started.

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode of the Investing for Beginners podcast, Andrew and Dave delve into the payments industry, exploring its significance for investors. They discuss the evolution of payment systems, investment opportunities, and the impact of digital transactions on the global economy.

• 00:00:50 - Andrew interviews Dave on payments as a financial expert.
• 00:01:06 - Importance of understanding payments for all types of investors.
• 00:02:16 - Payments simplify financials, crucial for economic growth.
• 00:03:44 - Plastic cards dominate payments, replacing checks and cash.
• 00:08:25 - Digital payments offer better tracking and spending control.
• 00:11:02 - Global adoption of mobile payments is rapidly increasing.
• 00:14:28 - Cross-border payments are becoming more efficient and affordable.
• 00:17:22 - Blockchain technology's potential impact on payment systems discussed.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners.

Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started.

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode of the Investing for Beginners podcast, hosts Andrew and Dave explore Alphabet Inc., the parent company of Google and YouTube. They discuss Alphabet's impressive 19% average revenue growth over the past decade, its competitive advantages, and potential challenges, including legal scrutiny and AI competition.

• 00:00:51 - Introduction to Alphabet, Google's parent company, and its significance.
• 00:01:07 - Alphabet's major revenue sources: Google and YouTube.
• 00:01:28 - Importance of analyzing a company's revenue growth over time.
• 00:02:26 - Alphabet's impressive 19% average revenue growth over ten years.
• 00:03:46 - Alphabet's attractive pricing and potential value opportunities. 00:05:01 - Google's services improve lives, offering significant user value.
• 00:14:11 - Legal challenges: Google's default search status under scrutiny.
• 00:27:47 - AI's impact on Google: potential risks and opportunities.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners.

Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started.

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

oin us on the Investing for Beginners podcast as we welcome Paul Cerro, Chief Investment Officer of Cedar Grove Capital Management. Discover his journey from Wall Street to Cedar Grove, and gain insights into his unique investment strategies and market perspectives.

• - 00:00:51 - Paul Cerro's background: From Merrill Lynch to Cedar Grove.
• - 00:01:18 - Competitive nature drives Paul's passion for stock investing.
• - 00:02:22 - Focus on beating the S&P, not other investors.
• - 00:03:43 - Investment strategy evolved pre, during, and post-COVID.
• - 00:05:18 - Prefers long-term holds with lower volatility for stability.
• - 00:06:07 - Discusses IPOs, arbitrage, and special situations strategies.
• - 00:09:53 - Arbitrage opportunities arise from price-value dislocations.
• - 00:26:47 - Beginners should avoid complex strategies; prioritize comfort level.

Learn more from Paul here:

X: @paulcerro

Substack: Cedar Grove Capital Management

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners.

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast, Episode 366. Today, we tackle two insightful listener questions about navigating stock market losses and strategic investment decisions. We also delve into Crown Castle's business shifts and Google's ongoing legal challenges with the DOJ.

• 00:00:54 - Listener asks about recovering from pandemic-related investment losses.
• 00:01:31 - Stocks plummeted; dilemma: top up or exit investments.
• 00:02:10 - Mistakes are learning opportunities; don't be too hard.
• 00:03:19 - Importance of mindset in long-term stock market success.
• 00:05:05 - Strategies for dealing with underperforming stocks.
• 00:07:04 - Evaluate if stock choices fit your investment style.
• 00:15:32 - Crown Castle's potential business sales raise investor concerns.
• 00:28:13 - Google's DOJ issues could impact search engine dominance.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners.

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode of the Investing for Beginners Podcast, we explore essential financial metrics that every investor should understand. From market cap and dividend yield to PE ratios and ROI, learn how these metrics can guide your investment decisions and strategies.

• [00:00:32] Introduction to financial metrics that matter for investors.
• [00:01:00] Explanation of market cap and its investment impact.
• [00:05:01] Discussion on dividend yield and total return importance.
• [00:08:32] Overview of PE ratio for stock valuation.
• [00:12:13] Importance of 10-year revenue growth for company analysis.
• [00:16:00] Significance of consecutive dividend raises in stock evaluation.
• [00:21:40] Valuation metrics: free cash flow to equity explained.
• [00:30:11] Solvency metrics: understanding interest coverage and debt ratios.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Join us on Investing for Beginners as we tackle listener questions on crucial topics like IRA investing with VA stipends, deciphering debt-to-equity ratios, and understanding key valuation metrics like price-to-book and price-to-sales. Learn practical tips for analyzing company financials and making informed investment decisions.

00:00:51 - 00:01:19: Listener asks about tax implications of investing untaxed VA stipends in an IRA.

00:01:19 - 00:02:12: Andrew explains IRA contributions require earned income, suggests consulting a tax professional.

00:02:27 - 00:03:13: Dave advises consulting a tax professional for personalized advice on IRA contributions.

00:03:34 - 00:04:17: Listener inquires about retirement options for high earners, including backdoor Roth IRA.

00:04:18 - 00:05:07: Andrew suggests consulting a financial advisor due to changing tax laws and personal situations.

00:07:11 - 00:08:20: Listener asks about finding debt-to-equity ratios; Dave suggests calculating from financial statements.

00:08:24 - 00:09:17: Andrew explains debt-to-equity ratio importance in assessing company financial health.

00:21:40 - 00:22:20: Listener asks about ideal P/E ratio; Andrew suggests 15 is too low currently.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast. In this episode, we're tackling the crucial question: how to start learning to invest. Whether you're a complete novice or looking to refine your approach, we'll explore practical tips, recommended resources, and strategies to help you begin your investing journey with confidence. Let's dive into the world of investing together.

00:01 - Introduction: Discussing how to start learning to invest for beginners

03:30 - Importance of understanding investing is a long-term, emotional journey

05:30 - Utilizing various learning resources: podcasts, YouTube, books, and social media

10:17 - Knowledge compounds over time; start with basics and build gradually

14:16 - Revisiting complex topics later as understanding grows

17:56 - Immersing yourself in investing content, even if not fully understood initially

20:19 - Importance of applying knowledge through writing, teaching, or discussing with others

23:16 - Recommended resources: books, Warren Buffett letters, and analyzing company 10-Ks

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING

Get 10 FREE meals at HelloFresh.com/freeinvesting!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast. Today, we're taking a bird's-eye view of Alibaba (BABA), the Chinese e-commerce giant. We'll explore its business model, financials, and potential risks. Whether you're considering investing or just curious about this tech behemoth, join us as we break down the key factors every investor should know about Alibaba.

1. 00:00 - Introduction to Alibaba (BABA) and initial thoughts on the company

2. 03:45 - Overview of Alibaba's core businesses: e-commerce and cloud computing

3. 05:41 - Discussion of Alipay, Alibaba's super app for various services

4. 10:06 - Analysis of Alibaba's financial performance and growth trends

5. 15:10 - Examination of Alibaba's balance sheet and capital allocation strategies

6. 20:20 - Consideration of Alibaba's company lifecycle and future growth potential

7. 24:26 - Evaluation of risks associated with investing in Chinese companies

8. 28:53 - Final thoughts on Alibaba as an investment opportunity

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Sign up for a one-dollar-per-month trial period at shopify.com/beginners.

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Start building your dreams with Bluehost.com

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast, episode 362. Today, Dave and Andrew explore the concept of competitive advantage period (CAP), a valuation tool associated with Michael Mauboussin. They'll discuss how CAP helps explain why certain businesses maintain higher valuations over longer periods and its implications for investors.

[00:00:32] Introducing competitive advantage period (CAP), a valuation concept associated with Michael Mauboussin's writings.

[01:08] CAP explained: Period where outstanding businesses maintain excess returns due to competitive advantages.

[02:38] CAP helps explain why certain companies have higher valuations for longer periods.

[04:09] Traditional 10-year DCF models may be too short for companies with strong moats.

[06:32] Scale economy shared: A self-reinforcing moat that strengthens as a company grows.

[09:40] Companies like Visa and Mastercard strengthen moats by working with potential competitors.

[15:24] Market may value companies differently based on expected duration of competitive advantage.

[17:42] CAP valuation must be logical; unreasonable growth projections can lead to absurd results.

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Start building your dreams with Bluehost.com

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast. Today, we're joined by financial educator Brian Feroldi to discuss Warren Buffett's perspective on earnings per share. We'll explore why EPS might be overrated and dive into the importance of return on capital metrics for investors.

[00:01:14] Buffett's view: Earnings per share is overrated compared to return on capital.

[00:03:21] Four ways to measure return on capital: ROIC, ROE, ROA, and ROCE.

[00:07:03] Simple example: Million-dollar investment illustrates importance of return on capital.

[00:12:28] Discount rate discussion: 10% minimum for individual stock investments.

[00:17:30] Good return on capital ranges: 10-20% decent, over 20% excellent.

[00:20:22] Six phases of company growth, including optimizing for profitability.

[00:24:33] Alcoa example: Low return on capital correlates with poor stock performance.

[00:28:45] Amazon case study: Not yet fully optimized for profits, affecting return metrics.

Find more of Brian here:

Youtube: Long Term Mindset

X: Brian Feroldi

Instagram: Brian Feroldi

LinkedIn: Brian Feroldi

Today's show is sponsored by:

Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.

Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!

Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS

Find great investments at Value Spotlight

Have questions? Send them to [email protected]

Start learning how to value companies here:  DCF Demystified Link

SUBSCRIBE TO THE SHOW

Apple | Spotify | Google | Amazon | Tunein

Learn more about your ad choices. Visit megaphone.fm/adchoices