We Study Billionaires - The Investor’s Podcast Network

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

Sep 24, 2023

01:14:29

Snipd AI

Daniel Pronk and Jake Ruth share the fundamentals of stock investing including the importance of compounding, temperament, profitable companies, and avoiding common mistakes. They discuss the pitfalls of growth, criteria for investing in a business, and the disruption of company moats. They also talk about their journey in starting Stock Unlock and the unique tools they provide.

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Quick takeaways

Newer investors often get emotionally attached to certain stocks, ignoring red flags and holding onto them regardless of declining fundamentals.

Investors often get drawn to businesses that are experiencing stock price growth without considering the fundamentals behind the business.

Investors make the mistake of assuming that revenue and earnings growth are always positive indicators, when in reality, profitability and cash flow are more important.

Deep dives

Falling in love with stocks

Newer investors often get emotionally attached to certain stocks, ignoring red flags and holding onto them regardless of declining fundamentals.

Investing Money You Absolutely Need is a Bad Idea

01:23

Buffett's belief in the power of compounding and its importance for investors

01:27

Introduction

2min

Back to Basics: Investing for Beginners

19min

The Importance of Emotional Discipline and Fundamental Investing

5min

Revenue Growth is Not the Holy Grail

17min

Accepting Failure and Learning from Mistakes

9min

The Strategy of Buying Stocks and Dealing with Market Fluctuations

26min

Excitement, Discount, and Connection: Giving Back to the Community

2min

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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