"I need to understand this business well enough. I can know that like net flick puts a streaming platform up, but that doesn't mean i know anything about how the business behind the scenes works," he says. "It's probably got a brand mote, you know, management." 'So immediately i can get to wherethis could be wonderful company and then i look at the main numbers, and i go, wo this is nasty'
After a long-awaited couple of weeks, this week on InvestED, Phil and Danielle are digging into the big investing question mark: Netflix.
On the surface, the technology and entertainment company seems to be doing well, however, there’s one big elephant in the room: it doesn’t have free cash flow.
This is a huge red flag in the world of Rule #1 Investing, and something that typically leads Warren Buffett and Charlie Munger to avoid investing in a company. But that doesn’t necessarily mean Netflix isn’t a good investment opportunity.
Join Phil and Danielle this week as they dig into how to understand a complicated company like Netflix and how to decide if it’s the right investment for your portfolio and long-term success.
To learn more about what types of questions to ask and what you need to understand to invest with success, download Phil’s 4 M’s to Successful Investing Guide: https://bit.ly/3zzKVOd
Resources Discussed:
Topics Discussed:
- Free Cash Flow
- Debt
- Earnings
- Depreciation Schedule
For show notes and more information visit www.investedpodcast.com
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