Understanding Stock Valuation

This chapter explores the intricacies of stock valuation, revealing how price reflects investor expectations about a company's future profitability. It also highlights the importance of personalized investment strategies and the impact of individual expectations on stock market fluctuations.

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Robert Leonard chats with Brian Feroldi about why personal finance isn’t widely spread in the US education system today, why stocks have value in the first place, what the Dow Jones Industrial Average, S&P 500, and the Nasdaq really are and how they differ, why public companies might issue new shares or even buy back their own shares, why the stock market generally goes up over a long time horizon, and much more!

Brian Feroldi has been intensely interested in money, personal finance, and investing ever since he graduated from college. Brian started investing in 2004. In the beginning, he got his teeth kicked in. His returns improved dramatically as he learned more about how the stock market works.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

01:55 - Why personal finance isn’t widely spread in the US education system today.

06:19 - Why stocks have value in the first place.

11:27 - What the Dow Jones Industrial Average, S&P 500, and the Nasdaq really are and how they differ.

17:32 - What the difference is between a publicly vs privately traded company, and why a company would want to go public.

29:20 - Why public companies want their stock price to go up.

37:09 - Why public companies might issue new shares or even buy back their own shares.

42:12 - How Brian thinks about valuing a company.

55:53 - Why the stock market generally goes up over a long time horizon.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Brian’s new book, Why Does the Stock Market Go Up?
Check out all of Brian’s Motley Food Articles.
Related episode: Listen to MI082: You CAN Beat The Market W/ Brian Feroldi, or watch the video.
Related episode: Listen to MI124: Is Amazon a Value Stock? w/ Jason Moser, or watch the video.
Check out the books mentioned in the podcast here.
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