I think that if you are comfortable with your answer on the debt problem, on the free casho problem, ah, it would make quite a lot of sense to buy it cheaper. If we don't see that they're solvable, if we can't figure out how they should solve it, then definitely this isn't an company we' want to buy. I think that's perfectly ok, just as long as you are clear about what the solution of the problem is. That's another story, entirely a we call these problems events, right? These kinds of problems are events. They could fix yo, ye. And i so vicerly remember when the horsehead thing was happening
In their final show on the investing question mark that is Netflix, Phil and Danielle use the entertainment and streaming company as a case study to help you understand how to handle investing in a company if you can’t figure out if it has an intrinsic value.
While most of the companies you invest in seem to be clear-cut, there could be some outliers. So how do you handle them? What are the red flags? How do you identify the moat?
Tune in to this episode of InvestED to learn how to invest in riskier businesses and identify their moats, and why it’s important to buy wonderful businesses at fair prices instead of fair businesses at wonderful prices.
To learn more about what types of questions to ask and what you need to understand to invest with success, download Phil’s 4 Ms to Successful Investing Guide: https://bit.ly/3zCiorb
Resources Discussed:
Topics Discussed:
- Valuation
- Big moat businesses
- Margin of safety
- Debt
- Basic investing rules
For show notes and more information visit www.investedpodcast.com
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