The Investing for Beginners Podcast - Your Path to Financial Freedom

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

Welcome to the Investing for Beginners podcast! Today's episode will be a special one as we have an awesome guest in the show! Karen Finerman, Metropolitan Capital Advisor's hedge fund manager and a panelist in CNBC's Fast money show, will be gracing us today with her investing journey, mistakes and wisdom throughout the years in different market cycles. She also has an upcoming podcast (already published at the time this episode goes live) named "How She does it which talks about having conversations with female leaders in all industries who make their own space and build their careers in unique ways. It was such a pleasure having her in our show and was a gem of insights not only in investing but life in general also so listen on!Timestamps of the episode:-Karen shares her investing journey from wanting to become a gymnast into doing risk arbitrage trading and being successful in a male dominated finance industry. [02:26]-Why always thinking about the downside matters. Karen talks about an expensive lesson she learned from investing. [05:36]-How to rationally handle your investing failures and make use of it. [07:49]-Why the current market conditions does not surprise Karen. [10:15]-How Karen's investing style changed throughout the years. [12:10]-Withstanding market swings and irrationality. How to overcome when the market narrative is against your stocks. [16:40]-Being in the age of hyper information does not help in giving you an edge as an investor. [21:44]-Key pieces of information that are more signal than noise in the markets. [24:14]-The best way of weighing investing risk vs reward in picking individual stocks. [29:18]-When to sell: the underrated hardest thing to do in investing. [34:05]-Karen shares the story behind her podcast, "How she does it" and how it empowers women in different industries. [36:50]-The most important lesson she taught her daughters. [39:15]-Karen talks about an amazing endeavor of a guest in her podcast which is awe inspiring to be honest. [41:20]Note: Timestamps may differ and are approximate, depending on your podcast player.Karen Finerman's podcast - https://open.spotify.com/show/2bDVlf5r5Rocbq0xZCK2JE?si=36c4dfc0aa4d4404For 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 Investing for Beginners podcast! In today's episode, we will talk about the five financial ratios every investor, beginner or not, should know! There's a multitude of ratios out there and each has their own purpose but we believe that these five are the most important and should be in every investor's arsenal in valuing a business so listen on!Timestamps of the episode:-The most popular metric of them all: The price to earnings ratio (P/E) [02:00]-The limitations of using the p/e ratio and the justification it gets depending on each industries it belongs. [04:33]-Defining the price to free cash flow ratio (P/CF) and why it is a more superior ratio than P/E. [09:27]-How to calculate the p/e and p/cf ratios into earnings yield. [14:52]-Now into the efficiency ratios: Return on Equity (ROE) and Return on Invested Capital (ROIC) [15:45]-Why always looking in a longer timeframe helps visualize the impact of ratios in a business. [21:38]-Balance sheet ratio: Debt to equity (D/E) [24:40]-The importance of knowing the context behind the d/e numbers and how it differs across each industry average. [27:04]-What is an interest coverage ratio and what it tells you. [31:15]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 MoneyStop throwing your money away. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to RocketMoney.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 today's episode, its all about the skepticism of a beginner investor and how to overcome it. We delve into the most common hurdles and misconceptions why people won't start investing like starting capital, lack of patience and more so listen on!Timestamps of the episode:-How underrated stocks can be as a source of passive income. [02:50]-What drives stock returns? [05:26]-Why stable dividends provide a floor in a stock's price. [08:30]-Patience is in short supply in the investing world. [10:35]-The fastest to grow your wealth is to go slow. [13:00]-Index funds is the way for the majority of people out there. [15:50]-Another underrated force of wealth creation: the power of compounding. [18:00]-Leveraging today's different tools to start your compounding journey. [22:00]-The best time to invest is now, not tomorrow but now. Just get started. [26:40]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 Shopify:Shopify is the commerce platform revolutionizing millions of businesses worldwide. Whether you’re a garage entrepreneur or IPO-ready, Shopify’s the only tool you need to start, run, and grow your business WITHOUT the struggle. This is possibility powered by Shopify.Signup for a one-dollar per month trial period at Shopify.com/beginners. Go to Shopify.com/beginners to take your business to the next level today.SUBSCRIBE TO THE SHOWApple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to Investing for Beginners podcast! Today's episode will be another round of great listener questions! As we've always said, we love receiving listener questions as it compels us to revisit important basic concepts in investing and also take deep dives into interesting topics so keep it coming guys! For this episode, we will talk about best pieces of advice for beginners in choosing their first stocks, the home country bias and a financial ratio that is often overlooked. Listen on!Timestamps of the episode:-The best piece of advice for beginners buying their first stocks. [02:20]-There's nothing wrong being an indexer. [06:55]-Why as a beginner, it's not bad having a home country bias. [08:30]-Taxes to consider when investing internationally. [16:28]-What is a payout ratio? and how high it should be. [18:00]-The risks of having a high payout ratio and how it stunts a growth of a business. [22:48]-Why Visa and Apple are great examples of a great business with a low payout ratio but brings great returns. [25:37]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! In today's episode we will talk about leverage and how it is being used in investing- the good and the bad, but mostly bad. Listen on as we go around the topic of debt and why in investing it is best to stay away from it even with the allure of higher returns.Timestamps of the episodes:-The Rich Dad, Poor Dad book by Robert Kiyosaki and how it teaches financial independence [02:22]-Pitfalls and upsides of using debt in investing. [05:03]-The cruel reality of using leverage and how it correlates with real estate investing. [11:15]-The illusion of running your own business. [14:55]-Using the leverage from your own home to buy investment properties. [18:50]-The liquidity problem of real estate properties. [24:55]-Why investing with a margin of safety will always be a good rule to follow. [27:44]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 will be all about memos! And its from an investor we all admire and glean wisdom from. Howard Marks' memos are timeless pieces of investing advice that can range from when to sell into macro forecasting. Listen on as we talk our fave memos and discuss the insights we learned from it!Timestamps of the episode:-Who Howard Marks is and why you should listen and read his memos. [02:05]-Selling a position is much harder than buying or starting one. Andrew and Dave shares their thoughts. [03:38]-Strategies to deal with your emotions in investing. [11:10]-Examples of metrics to help gauge a business's performance. [12:23]-The different stock market cycles, its ebb and flow. [16:37]-How narratives can change fast and easily- "This time is different" [21:48]-Macro forecasting and weather forecast are one and the same. [25:50]-Closing thoughts on why to read more of Howard Mark's memos. [34:05]Note: Timestamps may differ and are approximate, depending on your podcast player.Howard Marks' memos- https://www.oaktreecapital.com/insights/memosFor 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