White Coat Investor Podcast WCI #433: Investing Questions
24 snips
Aug 21, 2025 Explore the intricacies of stock valuation, using Tesla as an example to distinguish prices from true company value. Discover effective ways to track portfolio returns and the role of bonds in your investment strategy. Is gold a wise investment or just speculation? Dive into the complexities of private equity and its implications in the healthcare sector. Plus, learn about tax loss harvesting and the choice between hiring financial advisors or managing your investments yourself.
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Share Price Is Not Value
- Share price alone is meaningless for valuation; market cap (shares × price) defines company value.
- Use ratios like P/E or price-to-book to judge cheapness, not the per-share price.
Use XIRR To Calculate Dollar-Weighted Returns
- Track your personal returns using XIRR in a spreadsheet to get the dollar-weighted (IRR) return.
- Record cash flows with negatives for deposits and positives for withdrawals, and include starting/ending values.
Prefer Munis In Taxable Accounts
- If you must hold bonds in a taxable account, favor municipal bond funds to avoid federal tax on interest.
- Prefer moving tax-efficient stocks into taxable accounts and keep interest-bearing bonds in tax-protected accounts when possible.
