Paul from @Investmentideen joins the podcast to discuss topics such as his investing journey and great due diligence, the importance of finding your own style in investing, the problem of overpaying, and the approach to investing today. He also breaks down earning yield and differentiates between cheap stocks. The power of capital allocation and avoiding value traps are emphasized, along with the significance of rewarding shareholders. The chapter explores the importance of capital allocation in businesses and discusses alternative ways to assess the value of cash.

Welcome to the Investing for Beginners podcast! In today's episode, we will do a bird's eye view in how to approach in studying an industry that is not in your circle of competence as investors will say. We will take you in on how we approach it ourselves step by step and discuss the nuances of each so listen on!Timestamps of the episode:-Great frameworks to use in starting to study a new industry. A way to extend your circle of competence. [01:50]-Starting with the sales trend of companies in an industry paints a financial picture to where an industry is headed. [05:20]-Identifying the key players in each industry is helpful and important in gauging if an industry is investable or not. [10:50]-How to approach studying a technical industry like the semi-conductors. [14:25]-Tracing the value chain of an industry helps you find under the radar businesses that are profitable.[18:50]-Continuous learning and keeping up to date in the industry you're invested in should not be hard and can be boiled down to few metrics. [23:38]Note: Timestamps may differ and are approximate, depending on your podcast player.For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast! Today's episode, we have another great round of listener questions coming from Spotify! Questions in this episode encompasses a wide range of topics-from taxes to financial growth metrics- all are covered and discussed in a simple way Dave and Andrew are known for so listen on!Timestamps of the episode:-How to file your taxes in investing. It's easier than it sounds. [01:50]-Reliable sources of financial metrics and how to use them as each one has its own use cases. [03:23]-Don't overthink it and just dive in. Start investing as early as possible. [10:00]-What to do after your first investing failure. Spoiler: It will open a whole pandoras box of questions in becoming a better investor. [14:30]-Talking about different ETF's on index funds and why its a good starting point for beginner investors.[19:00]-Metrics to consider in measuring a businesses' growth. [21:45]-How different growth rates depend on which life cycle a business is. [25:37]-Why return on equity (ROE) is a good growth metric to use in increasing shareholder returns. [28:10]-Always remember there is no one metric that fits all. Dave discusses the pitfalls of ROE. [34:44]Note: Timestamps may differ and are approximate, depending on your podcast player.Sources mentioned in the episode: Stratosphere- http://www.stratosphere.ioQuick fs- https://quickfs.netSeekingalpha- https://seekingalpha.comFinviz- https://finviz.comBamSEC- https://www.bamsec.comFor more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com Today's show is sponsored by: FactorHead to factormeals.com/investing50 and use code investing50 to get 50% off.SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast! In today's episode we will be talking all about red flags of a businesses' financials and why we should look out for it. Red flags can either be really obvious or hidden deeper in the numbers and in this episode we will take a deep dive on each of them. Listen on as we discuss the questions you should ask yourself in encountering these red flags.Timestamps of the episode:-From profitable to non-profitable, a common overlooked red flag on businesses. [01:45]-Increasing debt to equity ratio, another rising red flag that has been proven to be detrimental in the future of a business [04:00]-Red flags are not necessarily deal breakers (mostly it is) but should make you ask yourself questions as to why it can be long term or not. [10:58]-Why sometimes a increasing goodwill of an asset acquired can be a red flag. [14:24]-Impairment losses are red flags and punishment for companies paying too much. It says a lot on the management's skill of doing acquisitions. [19:30]-Serial acquirers can either be great or bad as M&A's should be value accretive. Goodwill is the one to look out for on these companies. [28:30]-Decreasing return on invested capital (ROIC) and gross margins are another red flag of a business. [30:05]-A plethora of red flags is not a sign to short a company. [36:10]Note: Timestamps may differ and are approximate, depending on your podcast player.For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com Today's show is sponsored by Factor:Head to factormeals.com/investing50 and use code investing50 to get 50% off.SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast! Today's episode will all be about beta, causation and correlation in the stock market! It's quite a technical topic as it is hard show numbers through the podcast but we will do our best as always to piece it together as simple as possible. Listen on as we take a deep dive into volatility, what drives a stock price and more!Timestamps of the episode:-What is Beta and how is it being used in the stock market? [01:53]-Volatility and risk are not the same and will never be. [05:55]-Using Beta as part of your hurdle rate. [13:16]-The seemingly random relationship between causation and correlation in the stock market. [15:50]-How index funds and sector ETF's affect a particular stock price. [19:56]-What really moves a stock price up and down? [21:26]-The stock market in the short term is a voting machine, and in the long term it is a weighing machine, a timeless Graham quote. [24:20]Note: Timestamps may differ and are approximate, depending on your podcast player.For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com Today's show is sponsored by:Rocket Money:Stop throwing your money away. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to RocketMoney.com/BEGINNERS.Babbel:Get 55% off your Babbel subscription at Babbel.com/BEGINNERS.Shopify:Sign up for a one-dollar-per-month trial period at SHOPIFY DOT COM SLASH “beginners”, ALLLOWERCASE. Go to SHOPIFY DOT COM SLASH “beginners” to take your business to the next level today.SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | TuneinYou can find the transcript of today's show below:IFB298-Causation-is-not-CorrelationDownload Learn more about your ad choices. Visit megaphone.fm/adchoices

Listener questions revolve around timing of investments, time horizons, and portfolio allocation. They discuss investing in Roth IRAs, the importance of long-term investing, and overcoming fear. Consistent habit and compounding wealth are key. They also touch on dividend withdrawals from a Roth IRA.

Welcome to the Investing for Beginners podcast! We have another great listener episode! As always, we love hearing from you guys and ask us questions. Today's listener episode will be about dollar cost averaging, sizing your bets and everything you need to know about 401k investing! Listen on as Andrew and Dave give their insights especially on the right ways to correctly size your bets and why you should or not trim your winners.Timestamps of the episode:-How to use dollar cost averaging (DCA) in spreading your bets on the best opportunities. [02:14]-Don't give in to the itch of trying to find the next best idea as sometimes you can find it really close by. [07:55]-Where to find more info on the funds offered in your 401K and how to approach them. [09:10]-Universal rules in 401K investing and why every beginner should know about this. [11:56]-How to correctly size your bets in your investment portfolio. [15:15]-Should you let your winners run? or trim until your stomach can manage? A good problem to have.[21:10]-A pitch on Andrew and Dave's amazing newsletters. [27:05]Note: Timestamps may differ and are approximate, depending on your podcast player.For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | TuneinYou can find the transcript of today's show below:IFB296-Listener-QA-–-Dollar-Cost-Averaging-Portfolio-ManagementDownload Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast! Today's episode, we will explore and think outside the box and do scuttlebutt investing! As Peter Lynch's timeless quote says, "Know what you own" scuttlebutt investing is more or less the same- you get on the ground and research the company personally. Listen on as we discuss this boots on the ground style of investing and how it can help one greatly in gaining a deeper understanding of a business plus its pitfalls also!Timestamps of the episode:-What is "scuttlebutt" investing and why qualitative analysis must be about thinking outside the box. [02:26]-Always be observant of businesses around your "orbit" [05:20]-How taking scuttlebutt investing too far can be myopic to your investing. Living in your own bubble. [10:27]-Ways to extend your scuttlebutt bubble and reduce tunnel vision. [12:50]-Nothing beats doing research of a company through its employees. [19:25]-Why Glassdoor is such an important tool doing management/culture scuttlebutt. [22:27]-Another great tool for scuttlebutting: Tegus, a professional service doing management interviews [24:05]-Insider trading can be an unintended pitfall of doing scuttlebutt investing. [25:10]Note: Timestamps may differ and are approximate, depending on your podcast player.Glassdoor website- https://www.glassdoor.comTegus- https://www.tegus.comFor more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com Today's show is sponsored by Babbel:Get 55% off your Babbel subscription at Babbel.com/BEGINNERS.SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing For Beginners Podcast! In this episode, we have a special guest, John Rotonti, who shares valuable insights on the importance of Return on Invested Capital (ROIC) in determining the intrinsic value and growth potential of a company.John explains that if the ROIC is higher than the cost of capital, it leads to growth and increases intrinsic value. If it is equal, growth is neutral, and if it is lower, growth destroys value. He also breaks down the formula for calculating the economic spread or excess return spread, which is ROIC minus the cost of capital.Throughout the episode, John emphasizes the significance of a high ROIC and a higher economic spread for companies. He highlights how revenue growth, especially organic growth, plays a crucial role in driving intrinsic value growth for companies with a high ROIC higher than the cost of capital.00:04:49 Thorough research and analysis process for investing.00:10:08 Watch list, market sell-off, network, investor letters.00:16:57 Checklist for investing in businesses with tweaks.00:23:26 Free cash flow yield is the best predictor of future returns, according to multiple studies. To calculate normalized free cash flow, consider factors like cash inflows from selling off businesses. Another method is total shareholder return (TSR), which includes dividend yield and earnings per share growth. Models like discounted cash flow (DCF) and reverse DCF can help estimate fair values. Additionally, analyzing acquisition multiples in the industry can provide insights.00:35:26 DCF is a discounted cash flow model used to estimate future cash flows. It involves forecasting cash flows over a period of 5-10 years and then projecting them into perpetuity. The value of an asset is determined by the present value of future cash flows, which is calculated through discounting. Three key factors to consider are the size, timing, and riskiness of the cash flows. Building a DCF involves modeling revenue growth, EBIT margins, tax rates, and subtracting reinvestment to determine free cash flows. These cash flows are then discounted using a chosen discount rate. The sum of the present values of these cash flows, along with the terminal value, gives the enterprise value. By subtracting debt and adding cash, the equity value can be determined. Dividing by the number of shares gives the intrinsic value per share. Different scenarios can be explored to determine a range of fair values.00:46:04 ROIC and free cash flow drive value.00:51:09 Higher ROIC generates intrinsic value growth through growth.00:59:01 New Constructs provides accurate financial metrics data.01:02:11 PE ratios and free cash flow multiples are commonly used by people, but they are often misunderstood. However, understanding the three drivers of the multiple - earnings growth, return on invested capital, and risk - can make them useful. Examples show how different growth rates and cost of capital affect justified PE ratios. As the cost of capital increases, the justified PE ratio decreases. It's important to understand these drivers to make sense of multiples.You can find more John here on Twitter @JRogrowFor more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to the Investing for Beginners podcast! Today's episode will be all about multiple expansion- what it means and how it will impact the business you're investing in! The "multiples" term is always being thrown around by talking heads on tv and people in the investing community and we know how it can be confusing at times especially for beginners so listen on as we discuss each facet of it. Let's go!Timestamps of the episode:-What a “multiple” term mean in the investing word. [01:54]-The importance of knowing the driver behind every multiple expansion. [04:33]-How market expectations are baked into the multiples of a business. [05:45]-Other impact drivers that can move a business’s multiple expansion. [09:02]-If there’s multiple expansion, there exists also a compression. $META being the prime recent example. [14:40]-How the price to book ratio can be a good multiple to gauge cyclical businesses. [21:14] -The dangers of being fixated on the multiple expansion/compression game. [23:50]-Value investors are also victims of the multiples game. [28:30]Note: Timestamps may differ and are approximate, depending on your podcast player.For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices