The Investing for Beginners Podcast - Your Path to Financial Freedom Brian Feroldi Explains Why Warren Buffett Thinks EPS is Overrated
12 snips
Oct 10, 2024 Brian Feroldi, a financial educator from Long Term Mindset, joins to discuss Warren Buffett's intriguing take on earnings per share, claiming it's overrated. The conversation emphasizes vital metrics like return on capital, including ROIC and ROE, as keys to truly gauge a company's health. Feroldi illustrates these concepts through examples, such as Amazon's growth challenges and Alcoa's poor stock performance due to low return on capital. He stresses the importance of capital allocation and realistic profit expectations for investors.
Chapters
Transcript
Episode notes
1 2 3 4 5 6 7
Intro
00:00 • 4min
Buffett on Earnings: Beyond EPS
03:30 • 7min
Understanding Value Destruction in Finance
10:21 • 8min
Understanding Cost of Capital
18:35 • 5min
Understanding Return on Capital Ratios Across Industries
23:43 • 5min
Navigating Profitability: Lessons from Uber and Amazon
28:18 • 12min
The Importance of Capital Allocation in Assessing CEOs
40:42 • 2min