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TIP578: Fundamentals of Stock Investing w/ Daniel Pronk & Jake Ruth

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Sep 24, 2023

Daniel Pronk and Jake Ruth, co-founders of Stock Unlock, share their wisdom on stock investing. They discuss critical lessons for beginners, emphasizing the importance of understanding compounding and maintaining emotional discipline. The duo also highlights common mistakes new investors make and stresses why investing in profitable companies is crucial. Listeners learn about the traits of successful investors, and the unique tools Stock Unlock provides to simplify investment analysis, making the stock market more accessible for everyone.

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ANECDOTE

Newton's South Sea Folly

Isaac Newton lost a fortune in the South Sea Bubble despite his scientific genius.
This highlights how emotional discipline is crucial for investment success, not just IQ.

insights

INSIGHT

Growth ≠ Success

Revenue growth alone doesn't guarantee investment success; profit growth matters more.
Snapchat's revenue grew 9x since its IPO, yet its stock price declined by 60%.

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ADVICE

OPM Businesses

Avoid businesses that rely on debt or dilution to fund operations.
Focus on companies with organic profits and positive cash flow, as Charlie Munger advises.

Get the Snipd Podcast app to discover more snips from this episode

Navigating the Stock Market: A Beginner's Guide

01:40 • 19min

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Investing with Discipline

20:13 • 8min

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Navigating Income Statements and Investment Strategies

27:51 • 16min

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Smart Investments and Innovative Tools

43:46 • 7min

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Navigating Stock Market Challenges

50:48 • 21min

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Investing with Insight: Tools and Mindfulness

01:11:59 • 7min

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On today’s episode, Clay Finck is joined by Daniel Pronk and Jake Ruth to share the fundamentals of stock investing. They dive into everything they wish they knew as a beginner, the books they would read, and the biggest mistakes they would have tried to avoid.

Daniel Pronk and Jake Ruth are the founders of Stock Unlock, which is helping transform everyday people into successful investors. Daniel is also popular on YouTube, as he has over 200k subscribers on his channel. Daniel and Jake are the perfect guests for the show to help make stock investing much more approachable and easy to understand.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

02:24 - How Daniel and Jake first got into stock investing.

05:39 - The key lessons they would teach their younger selves.

08:57 - Why compounding is so critical to understand as investors.

16:25 - Why the best investors aren’t those with the highest IQ but those with the best temperament.

26:24 - Why growth isn’t always good for a business.

33:14 - Why most investors should stick to only investing in profitable companies.

36:33 - The most common mistakes newer investors make.

36:37 - Daniel’s three criteria for investing in a business.

49:31 - Why we should be wary of companies with high dividend yields.

56:23 - How the listeners should know when they are ready to start investing.

63:58 - Why most companies are doomed to have their moat disrupted.

65:27 - What led Daniel and Jake to start Stock Unlock.

01:13:50 - Unique tools that Stock Unlock provides.

01:14:28 - What books Daniel & Jake would give to their 18-year-old selves.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Get 30% off Stock Unlock for 12 months with code WSB here.
Stock Unlock’s YouTube channel.
Daniel Pronk’s YouTube.
Tune into our previous episode: WSB577: Valuation Masterclass w/ Aswath Damodaran or watch the video.
Follow Clay on Twitter.
Follow Jake on Twitter.
Follow Daniel on Twitter.

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