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The Investing for Beginners Podcast - Your Path to Financial Freedom

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Rank #60 in Investing category

Business
Investing
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How to Start Investing in the Stock Market for Beginners

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How to Start Investing in the Stock Market for Beginners

iTunes Ratings

358 Ratings
Average Ratings
210
54
31
27
36

Very poor

By Ognjen Sekulovic - Jan 06 2020
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This is a very poor podcast, both in form and content. There is so much better out there, these guys are amateurs.

Good one

By Gla17624 - Dec 20 2019
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I’ve been impressed with this podcast. These guys really explain things in an easy way. I’ve found that going back and listening to older episodes after a little time has passed makes them easier to understand too.

iTunes Ratings

358 Ratings
Average Ratings
210
54
31
27
36

Very poor

By Ognjen Sekulovic - Jan 06 2020
Read more
This is a very poor podcast, both in form and content. There is so much better out there, these guys are amateurs.

Good one

By Gla17624 - Dec 20 2019
Read more
I’ve been impressed with this podcast. These guys really explain things in an easy way. I’ve found that going back and listening to older episodes after a little time has passed makes them easier to understand too.
Cover image of The Investing for Beginners Podcast - Your Path to Financial Freedom

The Investing for Beginners Podcast - Your Path to Financial Freedom

Latest release on Feb 13, 2020

The Best Episodes Ranked Using User Listens

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Rank #1: IFB43: Back to the Basics Pt 1: The Anatomy of Stocks and Shares

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This is part 1 of the 5 episode “Back to the Basics” series from The Investing for Beginners Podcast. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time. Here are the links to each of the episodes: […]

The post IFB43: Back to the Basics Pt 1: The Anatomy of Stocks and Shares appeared first on Investing for Beginners 101.

Dec 18 2017

31mins

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Rank #2: IFB131: What to Consider for Your 2020 Investing and Personal Finance Goals

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Announcer:                        00:00                     You’re
tuned in to the Investing for Beginners podcast. Finally, step by step premium
investment guidance for beginners, led by Andrew Sather and Dave Ahern. To
decode industry jargon, silence crippling confusion, and help you overcome
emotions by looking at the number, your path to financial freedom starts now.

Dave:                                    00:36                     All
right folks, we’ll welcome to investing for beginners podcast. This is episode
131 tonight. Andrew and I are going to talk a little bit about the upcoming
year. So Andrew had a great idea, and we’re going to talk about the year 2020
and things to consider for your investing and your personal finance in upcoming
years. So Andrew’s got a whole list of things for us to talk about. So I’m
going to go ahead and turn it over to my friend and we’ll get going.

Andrew:                              01:03                     Well,
thank you, friend. You’re welcome. So many of the different things we can talk
about. I want to talk about like the fed politics things and big themes to look
out for next year. All sorts of things. I think it’s good to start with
unemployment statistics. The latest figures for unemployment this is last
month, November 2019, it’s down to 3.5%. So to me, when I think about what that
means and how we look at the course of our finances, right? You want to make
hay while that while the sun is shining and you, you want to look at a time
like this where unemployment is so low as a time where you should be saving and
not spending.

Andrew:                              01:55                     So
I think if you think about, you know if you’re gainfully employed, and you
know, I’m assuming a lot of people who listen to us now probably are, and
they’re looking to grow their money. This needs to be a time where you build an
emergency fund, you increased contributions to the various personal finance
vehicles that you have and you try to take advantage of any prosperity that is
out there. You know, we don’t know how long unemployment will stay this low and
there are all [inaudible] cycles just like anything else. And so you know, it
will, you have, whether you’re going to do with what you have now and how are
you going to take the best advantage of it. It’s, it’s very easy to, to get a
lucrative job. And then as you’re doing that, you’re getting into the rat race
and always looking for the next best thing. So maybe after the new jobs, the
new car and after the new car may be upgraded in house, right. And so really as
you keep moving and you keep moving

Andrew:                              03:08                     What,
what, what am I thinking of? You’re moving like the goalposts, so you’ll never
reach them. And if you’re not putting, saving and investing, building an
emergency fund, having some financial security and working towards that and
that’s not a big part of whatever money you have available to you now. I think
it’s hard to project that out into the future. I mean, we all know what, 2020.
I think there’s a lot of speculation. You have the balls and the bears, the
bears say a recession is imminent and you know, they’ve been saying it since
2015 and earlier, or you have the bowls who think we’re just going S and P 500,
you know, 4,000 or whatever. So you have, you have these, these differing
opinions. But I think it’s safe to say that we don’t know what the future will
hold for next year or the following years. But it’s best to plan for prosperity
no matter what happens. And so if you don’t have an emergency fund, I think
this is a good time to start. If you’re thinking of, you know, that next
expensive purchase, I think it’s a good thing to reconsider may be and try to
project yourself into a situation where is unemployment higher? Are you at risk
of losing a job, having to work two, three jobs to pay the bills?

Andrew:                              04:34                     The
sorts of things that, you know, need to be going through our minds and not
what’s the, what’s the moving goalposts, you know, what can I buy to make
myself feel better? Instead, it’s let’s, let’s make hay while the sun is
shining and let’s try to capitalize on any prosperity we might have now and
maybe make that a point for next year.

Dave:                                    04:58                     That’s
all great stuff. And one thing that I was thinking about while you were talking
about that as when you’re thinking about upcoming goals and upcoming plans. It’s
always great to in some way, shape or form, put these in a place where you can
refer to them again and again and again in the future, whether it’s, you know,
Andrew and have, 15 spreadsheets with 17 tabs on each spreadsheet and, and
having, it all like that. Or whether you’re a pen and paper kind of person or
you like to put notes in your phone, whatever it may be. Any of those kinds of
things are great ways to keep track of your goals and to refer to them on a
somewhat regular basis, which helps you stay on track if you will. And I
remember an article that I read not too long ago from our friend Vitaly, and he
was talking about budgeting and some things that he learned from a friend of
his.

Dave:                                    05:58                     And
one of the things that kind of stuck with me, which I thought was kind of
brilliant and I don’t think it’s talked about enough, was planning for that
next big purchase and starting to try to save money to do something like that
as opposed to relying on, Oh crap, the car died, I got to get a new one. And
then having to scramble or E, borrow more money and put yourself in possibly the
same or worse situation than you were in before. And so that was something that
he thought was eye-opening. And I kind of thought it was too as well because
that’s not something that we ever think about. You know, we all have cars or
Oh, a lot of us have cars and we all know we’re going to need another one at
some point. But how many of us plan for replacing the car that we have now?

Dave:                                    06:46                     And
I’ll admit I did not until I read that article and then I started thinking
about it. Well, you know the car I have now is about 140 some thousand miles on
it, and it’s 2010 so it’s not a horrible car, but it’s got a few miles on it
and it’s still running great and everything. But at some point I am going to
have to replace it and what is my plan? Well, I don’t have one. So like Andrew
was saying, now is the perfect time to start thinking about that, how setting
aside extra money for something like that, or figuring out a way that you can
earn a little more interest. Whether it’s an online saving account or going
into your bank and talking to them and saying, Hey, is this the best you can
do? There are all kinds of different options that you can utilize, which don’t
take a lot of time and take a little bit of research and a little bit of effort,
but can yield you a lot more results in the long run.

Dave:                                    07:34                     But
there’s that saying out there that those who fail to plan fail and you know,
and this is, it’s kind of blunt, but it’s, it’s true. And if you don’t think
about, you know what it is you’re trying to accomplish, then you’re never going
to get where you want to go and money. Unfortunately, and this is why Andrew
and I are doing this on money, unfortunately, tends to be something that people
don’t think about or plan or organize like they do other parts of their lives.
And that’s unfortunate and I think that’s something that needs to be a light
shined on and try to encourage people to do more of those kinds of things as
they go along. I’m glad you brought up that point about, you know, maybe part
of a plan for next year is looking at what your, what vehicles your money is in
now and. And whether your options, we’ve talked previously and this past month
and maybe two months of the whole commission-free trading and how that’s changing
everything. And maybe this is the year or even the decade to be like a broker,
like a broker agnostic where you know, the days of like just having to have one
broker and feeling locked into that. I don’t think that

Andrew:                              08:57                     That
needs to be the case anymore. You know, with, with the whole elimination of
commissions with pretty much almost every online broker, you know, just the, a
lot of these brokers are offering competitive products and you have to figure
what’s, what’s best for you and what’s not. I have, I’ve started to branch out
myself. I just opened the account with fidelity. I have an account with Merrill
and we’ve mentioned ally in the past. And so you know, what I’ll, I strength
these to be with the very low commissions is now kind of industry standard. And
so it’s worth taking a look and seeing how some of these brokers have positives
and negatives. And you don’t need to have all your accounts with one broker,
and you know, the way they make it these days; it’s, it’s super, super easy
that to sign on to these accounts online, transfer money and do all of those
things.

Andrew:                              09:54                     And
so I think moving forward and trying to figure out what, what to do with, with
different brokers and, and maybe, you know, keeping an eye on what’s going on
with, with your finances from a contribution standpoint. So I know for the 401k,
the contribution limit was 19,020 19. It’s going up to 19 five for 2020. If
you’re 50 or older in 2020, it’s going to be 6,500 for workplace plans, which
is up from 6,000 and for an IRA, it stays the same. So that’s 6,000 with a 1000
ketchup if you’re 50 or older. So with those things in mind, you know, is this
the year where you’re going to do a rollover where you’re going to take an old
401k move it into an IRA, is that necessarily need to be with a break or with a
broker you’re not too excited about?

Andrew:                              10:56                     No,
it doesn’t, you know, have you never opened an account before, and you want to
try that open one? This could be the year for that too. So all of these
innovations in the financial industry are just great for the consumer, but it’s
up to us too, to take advantage of it ourselves and just have the, just go out
and take advantage. A couple of the other developments that have gone on in
2019 this is news as of yesterday, the fed announced that they’re going to
freeze rates at least for the short term. So, you know, it’s confusing how the
fed and interest rates and everything work, and it’s a huge complex machine.
And I don’t want to try to say that it’s super simple. It’s not, but all and
its most base level interest rates can determine how an economy booms and
busts.

Andrew:                              11:58                     And
so basically what it does is it controls the supply of money. And so there’s
more money afloat when interest rates are lower, which tends to make the stock
market higher. And when interest rates are higher, there’s not as much money
sloshing around, and the stock market tends to drop. And so as a stock market
events investor, when you see the fed announced that they’re keeping interest
rates frozen or if they ever say they’re going to cut rates, wall street tends
to like that and you’ll see stock prices move up higher. And not only will they
do that on an announcement, but you’ll also see better business results and
higher stock prices over time because those are real effects to the economy.
And you know, not, not only do like stock prices move up higher with lower
interest rates, but you have to think like if you take the average Joe Small
business, maybe he needs to borrow some money.

Andrew:                              12:57                     When
rates are lower, it’s easier for him to do that. He can put that capital to
work, it goes into the economy and that all just kind of trickles out from
there. So that’s, that’s what’s going on with the fed to kind of consideration
we have government debt pretty high. I think you know, the thing that pisses me
off about the whole government debt thing is, have you ever seen that that
calculator ticker thing online or it, it’s showing them like, you understand
that, right? The trillion. Yeah. That, that pisses me off beyond no. And
because there’s no contact, at least the last time I checked, there’s no
context there because you have to consider the debt compared to our GDP. And so
you can scare people with trillions and trillions of dollars. Right? And then
that sounds like this massive amount. Oh my gosh, it’s to the moon and back
50,000 times.

Andrew:                              13:54                     I
get that. But we also need to understand that the way that money works and $1
trillion today is not the same as $1 million eight years ago, you know? So what
we need to do is we need to compare apples to apples, get some context. And so
from the context of GDP to debt, which is one metric that Warren Buffett has
famously talked about before, we’re at about, depending on, I guess I’ll use
the official Fred, this is M federal reserve bank of st Louis. There lay this
chart Q3 2019; they have us at one. Oh, 5.46. So a hundred w you would think
that’s a hundred percent of GDP would be as much as we bring in an income per
year. So it’s high and it’s been high for the past decade, but this isn’t like
the very first time we’ve had a high that the GDP, if you go back to the world
war II, years to GDP was a 114% 119% in 1946 and then they got back down after
that and through the cold war and then continue dropping.

Andrew:                              15:15                     So
it’s not this, in a way, it’s unprecedented. Everything is, but we’ve had high
debt before. And so where I think it gets problematic as if, as we’ve been
doing the past several years that it’s not improving. But at the same time, I
think so sounding the alarm bell and saying that, well it’s, it’s grown by
however many trillion and it’s at this many trillion dollars, that doesn’t tell
us anything. All it does is make us fearful. So as investors we might look at
that and think, Oh man, you know, how can we ever pay this off and how can we
ever get back from this? And that’s not the right conversation to be having.
And so we need to understand is a, you can manipulate those debt numbers to
justify an investment decision one way or the other. And I think we’ve talked
about over and over again how futile that idea that you can kind of pick and
choose where the get in and out of the market. How few tiles really that is to
try to do and how you’re probably better off just creating an investing habit
and sticking to that regardless of what happens next year with the budget.

Dave:                                    16:33                     I agree with that. I like the thoughts on, on, on how that’s comparable and trying to put it in context, especially when you’re talking about the debt versus the GDP because I think that it has so much more of a correlation that I think we realize. And I know that you and I have both read, excuse me. We have both read the recent Ray Dalio book about the Big Debt Crisis. And that was fascinating and Oh my God, bright smart guy. Another thing along with these wines, if you’re not 100% sure about how the economy works and how debt works and those kinds of things, there is a ridiculously fantastic YouTube video that Ray Dalio created called how the economic machine works. It’s also in a book, but the video is about 30 minutes long or so, and it explains everything that Andrew was talking about.

Dave:                                    17:34                     And
it is a fantastic way to learn how all this is interconnected. Just in case you
didn’t pay attention to in your government class back when you were a freshman
in high school. I know I didn’t. So it was very for me to watch that years ago.
So it’s fantastic — the next big development. I think we’d be remiss if we
didn’t talk about this. Dave, I’d like to hear your thoughts there. We have a president
who’s up for reelection and a couple of incumbents with their different ideas
and everything. How do you think, maybe now is not the right question, but what
are your thoughts on the presidential election and the potential impact on the
markets from there? Oh boy, that’s going to be very interesting. I think this
is probably going to be, I thought the last election was going to be probably
one of the more contentious ones that I’ve ever seen and maybe we’ll see in my
lifetime.

Dave:                                    18:29                     I
think this one’s going to be excited even to the next level for a variety of
reasons. One, whether you like him or not, he has done some good things and
some of the things he said he was going to do, he has done. And I know that’s
going to get me in a lot of hot water with people, but you can’t argue that the
economy has done, has been doing well. Now you can’t argue whether he’s had an
impact on it or not. That could be another conversation for another day. But
the fact of the matter is unemployment is incredibly low; the stock market is
continuing to go up and up and up. People are making more money. And so those
are pluses and bonuses. So you got that going on. Then you have the attempt to
try to impeach him, which appears not to be going anywhere.

Dave:                                    19:27                     And
that is going to be a bonus in his favor as well because they tried to kick
them out and they couldn’t. And so that’s going to be another factor. And I
think they can’t get over the fact that he won. And I think people are just
still upset about that. And I think that this is going to continue and it seems
like we’re racing towards the kind of extremes in the political party as opposed
to more of the middle. And I think that’s where we need to be more so
personally. But it just seems like that the real, the only way to get anybody’s
attention anymore is to be so extreme that that’s where it kind of stands out.
And I think that I mean I feel like the policies that the other candidates want
to try to enact would be incredibly detrimental to the company or the company,
the country.

Dave:                                    20:26                     And
I don’t think they would be in our best interest in the long term. Do we have
problems? Of course, these are the things we need to fix. Absolutely. But I
don’t think that racing to the either extreme, whether it’s the writer of the
left, I think is the right way to go about doing that. And the thing that I
find intriguing or interesting about it is, you know if you think about if you
see if you go far enough or to the right, you become left. And vice versa. If
you go far enough to the left, you become, you go to the right.

Andrew:                              20:56                     I
think like an investor looking at the upcoming election and trying to figure
out, okay, how can I profit from this? I want to turn the history books back a
couple of pages and remember that in 2016 everybody thought Hillary was going
to win.

Andrew:                              21:16                     I think when Trump won, everybody expected the stock market to crash and it’s just not, you know, and you can, you can substitute so many different themes into, into thinking, well, this candidate is going to win. So this industry must boom, or this one must bust. And, and it’s just, I don’t think it’s investible, like a reliable investible plan and something to consider a Forbes. Heather Gray is the coal, and this was back in 2016 where they looked at the S and P 500 returns for every president since 1929. And they referenced a study done by Campbell and Lee in 2004 which is posted on the federal reserve website saying there’s no conclusive evidence suggesting the president’s party has any statistical least significant impact on us equity market returns. So, you know, we all maybe have our favorite side and we all have our ideas of

Andrew:                              22:30                     What
would happen in the market based on what the president gets elected. But there
are so many other factors that go into what sets prices on wall street and you
know, you have economic cycles and, and just all of these sorts of things. And
I, I don’t think it’s a good idea to either panic sell after a decision is made
or maybe even panic sell before the election because you think whoever the next
president is is, is going to be a disaster. It’s really; you got to stay the
course and not make any rash decisions. And I think, I think in my mind, and
maybe I’m wrong in my mind, the election is just a ton of noise.

Dave:                                    23:15                     I
would definitely, I would agree with that. It is a ton of noise and it’s very
distracting. And I remember when President Trump was first elected and the
panic selling that went on immediately after it was announced that he had, he
had one and then you know the Trump rally, you know how boho everything kind of
went back up from there. But you know, I agree. It’s just, it’s all noise and
it’s just, it doesn’t, there’s, so like you said, there are many factors that
are involved in what goes on with the economy in this and stock market and
everything like that. Does it have, you know, influence on it? Of course. But I
think the, you know to like you said, the one side or the other having a huge
impact, you know that Republicans are going to be pro-business and they’re
going to drive all these stock market returns versus the Democrats. I think,
you know, that study that you were referencing, I would personally like to see
that and I think I should put that in the show notes or at wink for that
because I think that would be very unlikely.

Speaker
1:                           24:18                     Hey,
you, what’s the best way to get started in the market? Download Andrew’s free
ebook at stockmarketpdf.com.
You won’t regret it

Andrew:                              24:30                     Your
way. A couple of other statistics may be on the other a little bit more useful.
I think listeners will find useful. In 2019, the millennials were recorded as
taking 5.6 trips per year. This is from my December 11 or issue compared to
baby boomers at three and a half and generation X at four trips per year. So
millennials make up the world’s largest population segment right now and they
have an estimated 200 billion of spending power. And so, you know, I have
certain investible trends that I’ve picked up during this year with things that
are trending higher and seem to continue to go and not having to necessarily
pay huge prices for to, to be a part of those sorts of things. Some other kind
of stories that we’ve seen this year. You had lots of different IPOs; you had a
lot of IPO failures.

Andrew:                              25:39                     Uber
comes to mind. Spotify comes to mind. One very recent IPO that took off was
Beyond Meat, which is the whole vegan Patty thing, which more power to more
power to them. It just went crazy in the stock market. And so I think you can
look at something like that and you can see while maybe this whole trend
towards organic and healthy and, and like this obsession with healthy food and
responsibly raised me in all of those sorts of things. Maybe those are real
trends too, to consider looking for into the future. And so when I look at my
portfolio, I can identify not only, Hey, I bought this stock at a great price.
Hey, it’s got great growth. Recently, a lot of these different stocks, I’m
buying two, I can look and I’m like, Hey, they, like their main product is
responsibly raised and organic and all of those sorts of things.

Andrew:                              26:49                     This
companies main demographic is millennials who are traveling more. That’s a
direct boost to our bottom line. Those are, those are the sorts of things that
we can look and we can, we can take a look at what’s going on in the world
around us this year and try to figure out what’s going on next year and make
some money based off of those things. Just having an observant eye and just
paying attention to what’s going on, how the world’s changing and understanding
that, yeah, maybe I would like to profit from more people being healthy. That
doesn’t mean I want to buy the beyond me IPO because it’s, you know, we stay
away from IPOs and it’s probably way overpriced, but maybe I found another
stock that’s more of a traditional value stock, but they can, they profit from
that trend in their way.

Andrew:                              27:49                     And
so that’s, that’s something to consider kind of. The last little statistic I
want to throw out there, this is from a report from Deloitte. They said six
trends for 2019 the future of health. And they talked about how between 2017,
the 2022 global healthcare spending is expected to rise 5.4% annually to just
over $10 trillion. So, you know, there, there’s a huge, there’s a lot of
attention, a lot of dollars going towards different industries. And so I think
like the whole healthcare thing is playing out with the biotechs. I talked
about the biotechs a little bit last week and how these things are just
erupting these stocks. And so these are the types of things where we can pay
attention and keep a watchful eye, but at the same time, you have to kind of
corral yourself and don’t get super emotional.

Andrew:                              28:51                     Don’t
let your emotions justify a bad investing decision. Remember that you’re in,
you’re going to invest with a margin of safety. Emphasis on the safety in that
margin of safety comes from numbers and valuation. But at the same time, you
can use that to your advantage to maybe pick the stocks that might be better
poised than others and have multiple ways that your stock can go up and provide
a return rather than just being a do or die thing. That’s great. Yeah, that
was, that’s great advice. And I, I, I like the thought of keeping an eye on what’s
going on in the world and how that can impact what you’re looking at as far as
you’re investing in. I mean, with things like you’re talking

Dave:                                    29:42                     About
with the, with the health care, it makes sense because as the baby boomers are
getting older, they’re going to need more healthcare, and that’s a very large
segment of the population in the world. And it makes sense that they’re going
to need more healthcare as they get older. And it just, it’s a dog. But those
are things that we don’t always think about. And that can shape what you’re
thinking about investing in, especially if it falls within your circle of
competence. And it’s something you feel comfortable investigating and warning
you to know enough about that you can no what the company is doing and where
they’re going to be in five to 10 years and how that can make you money. So I
think that’s fantastic.

Andrew:                              30:27                     And
you know, we have the certain things that are going on and the things we, we’ve
observed this year, the big news stories, the things that seem to be trending
in a certain direction for next year. But I think the last thing to realize is
at the end of the day; valuation is timeless. And so we say it every week and
if anything, we’re pounding it into our brains more than into yours, but invest
with a margin of safety, emphasis on the safety. I think that’s always going to
reign true. Whether we’re talking about 20, 20, 20, 23 or you know, 2120,
right? Th this is something to keep in mind and kind of sits at the forefront.
Everything else can help with your decision making. But I think this should be
the main focus. And so, you know, with this time of the year we’re recording
this near the end of 2019 this is going out see some of the second weeks of
December will be the third week of December.

Andrew:                              31:30                     So
for a couple of weeks, we’re going to reopen the Investing for Beginners master
class
. If you don’t know what we’re talking about when we talk about
valuation, a margin of safety, emphasis on safety, if you wish, you have more
clarity on exactly how that breaks down. You like detailed class formats, on
how we define that, how we’ve taught it and how we implement it in our
investing. The invest scene for beginners’ masterclass is the place to check it
out. And so we’ve, we’ve only opened enrollment several times and you know,
just like, what was it, three times, this will be the third time. I think Dave,
we’ve opened in like the past two or three years. Yes. So definitely use the
holidays, use the new year to kind of jumpstart. And if this is something that
you’ve been thinking about learning about and wanting to take a masterclass
that’s like this tangible thing where you can learn a lot of the things we talk
about and have a structure to it and know it’s, it’s an online course.

Andrew:                              32:41                     You
got a username and a password, and we’re, we’re going to offer, you know, it’s,
it’s completely on the, on the honor system. So really you can do whatever you
want, but we, Dave and I would like to offer the opportunity. If you get
enrollment for the masterclass, you can share it with one other person to give
to them as a gift. So that can be something you can take with somebody and go
through the lessons together. Really at the end of the day, we, yes, we have to
put food on the table for our daughters, but we are very passionate about
spreading this message and getting people educated and informed in the ways
that we weren’t growing up. So this is a great way to do it. Great way to learn
about personal finance, the stock market valuation, margin of safety, all those
great things all bundled up and the masterclass. And so we’re going to keep
that open until January 3rd so if this is something you’ve thought about, we’ve
talked about it in the past. As I said, it’s a limited enrollment, so make sure
you get in while you can and then it’s going to close up and we don’t know when
we’ll reopen it. So that will be, this is our PSA announcement.

Dave:                                    33:56                     Yeah,
exactly. And it’s geared towards beginners and so it has a lot of great stuff
in there that can help you if you’re not sure about a lot of the things that
Andrew and I talk about in a class and it goes through these things in-depth
and really kind of help shine a light on a lot of those different kinds of
terminology and topics and kind of a broad overview of value investing as well
as just finance in general. You also will get information about different
formulas that you can use, whether it’s a discount of cash flow, whether it’s
dividend discount models, any of those kinds of things. There’ll be in there as
well. So you can learn from the ground up how to do those kinds of things. And
the other cool thing is, is that I just discovered this myself, is that you can
do all this stuff on your phone as well.

Dave:                                    34:46                     So
they have a mobile app through teachable that you can use to watch all these
things, so it doesn’t have to be on your laptop, which I thought was like kind
of like mind-blowing for me. So it was kind of like you got to remember guys, a
molder. So bear with me. All right. But I thought that was kind of cool. So
anyway, without any further ado, we’re going to go ahead and sign us off for
tonight. I hope you guys enjoyed our conversation about things to think about
for 2020 and what you can start to prepare for and get a plan together for your
finances for the upcoming year. So without any further ado, we’re going to go
ahead and sign us off. You guys go out there and invest with a margin of
safety, emphasis on safety. Have a great week and we’ll talk to y’all next
week.

Announcer:                        35:29                     We
hope you enjoyed this content. Seven steps to understanding the stock market
shows you precisely how to break down the numbers in an engaging and readable
way with real-life examples. Get access today at stockmarketpdf.com
until next time, have a prosperous day.

Announcer:                        35:54                     The
information contained is for general information and educational purposes only.
It is not intended for a substitute for legal, commercial, and or financial
advice from a licensed professional. Review. Our full
disclaimer@eeinvestingforbeginners.com.

The post IFB131: What to Consider for Your 2020 Investing and Personal Finance Goals appeared first on Investing for Beginners 101.

Dec 19 2019

36mins

Play

Rank #3: IFB92: A Refresher Episode on Some Investing Basics

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew and Dave, too decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers. Your path to financial freedom starts now. Dave:                                    00:35                     All right folks, well […]

The post IFB92: A Refresher Episode on Some Investing Basics appeared first on Investing for Beginners 101.

Feb 28 2019

29mins

Play

Rank #4: IFB85: Finding Good Dividend Stocks By Using Better Ratios

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern to decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now. Dave:                                    00:34                     All right […]

The post IFB85: Finding Good Dividend Stocks By Using Better Ratios appeared first on Investing for Beginners 101.

Jan 02 2019

38mins

Play

Rank #5: IFB114: Buying a Home vs Investing in the Stock Market

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers, your path to financial freedom starts now. Dave:                                    00:36                     All right […]

The post IFB114: Buying a Home vs Investing in the Stock Market appeared first on Investing for Beginners 101.

Aug 08 2019

21mins

Play

Rank #6: IFB64: Personal Finance 105: Maximizing Passive Income

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  Welcome to Investing for Beginners podcast this is episode 64. Tonight we’re going to conclude our series on personal finance, this is episode 105 of our little series here. Andrew’s going to start us off we’re going to talk a little bit of passive income so Andrew go ahead and take it away. Andrew: […]

The post IFB64: Personal Finance 105: Maximizing Passive Income appeared first on Investing for Beginners 101.

Jul 06 2018

30mins

Play

Rank #7: IFB121: Analyzing the Growth of a Stock Pt. 1

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern to decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers, your path to financial freedom starts now. Dave:                                    00:35                     All right […]

The post IFB121: Analyzing the Growth of a Stock Pt. 1 appeared first on Investing for Beginners 101.

Oct 03 2019

40mins

Play

Rank #8: IFB132: Warren Buffett on Investing in Business Vs Pricing

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Announcer:                        00:00                     You’re
tuned in to the Investing for Beginners podcast. Finally, step by step premium
investment guidance for beginners, led by Andrew Sather and Dave Ahern. To
decode industry jargon, silence crippling confusion, and help you overcome
emotions by looking at the numbers, your path to financial freedom starts now.

Dave:                                    00:37                     All
right folks, we’ll welcome to investing for beginners podcast. This is episode
132 tonight Andrew and I are going to listen to a few clips from our uncle
Warren Warren buffet that is, and we’re going to, I picked out some different
interviews and picked out some different clips, and I’m going to play them for
us. And then Andrew and I are going to comment on those as well. So hope you
guys enjoy, and without any further ado, I’m going to go ahead and turn it over
to uncle Warren and let him do his thing.

Warren
Buffett:                01:06                     Well,
yeah, if you own stocks like it on a farm or apartment house, you don’t get a
quote on those every day or every week. And I think you look, you look at the
business, and the value of American does. This depends on how much it delivers
in cash to its owners over between now and judgment day. And I don’t think it
changes by 10%.

Andrew:                              01:23                     Yeah,
I liked this one. Was this from a recent Berkshire meeting? It sounds very
familiar. It’s an interview that he gave on TV about a year ago. Yeah, I
remember that interview. I think it was with Becky Quick on CNBC. That’s
correct. I’m everything out now. Okay, cool. Yeah. Yeah. So yeah, I liked that
quote by Buffet. When you look at the market, and you see the wild swings,
we’ve, you know, one of the things that have been on my mind lately is the big
moves and a lot of these different stocks based on just the smallest of news.
And so you’ll see these huge swings and it goes against what you know is a
business losing, let’s say 10% of its earning power or gaining 10% of its
earning power within the period of a few days. I think that’s, that’s somewhat
hard to imagine.

Andrew:                              02:32                     And
yet we see these huge swings in price with a lot of these stocks. And so it
makes me laugh to think that there’s, there are ideas that you can’t find value
within these wild swings. And I think especially when you’re looking at a
prolonged bull market, or you’re looking at a very pessimistic bear market,
there are going to be a lot of wild mispricings. And so that can lead to a lot
of opportunity for investors and particularly investors that can be a little
more rational level headed and have this old school, Warren buffet business
owner type approach to the stock market. And so I think, you know, it’s
starting with that quote right there. I like it because it defines how we look
at the stock market and kind of where that competitive advantages, right?
Because if you’re going to try to buy stocks and you’re going to try to be at
least as good as the market of their, tried to beat the market, you have to
know where your edge is and what that is.

Andrew:                              03:41                     And
so by defining it as how hard it is to be a business owner, I’m not going to
freak out and try to check the quote every day, but I’m just going to believe
in the business and find the businesses that are not being recognized by the
market. Then when you recognize and kind of set that as your advantage point,
then from there, you can figure out what you want to focus on and figure out
that this is going to be the way that you’re more likely to make gains in the
market. It’s not going to be from insider information. You know, it’s not going
to be from being a superior market timer. This is where the bread and butter are
going to be made. And so again, focusing on that and not worrying about all the
other aspects of the market, I think, can help confirm that behavior. If you
have that mindset, you can reinforce that behavior within yourself and hopefully
lead to better returns and better results.

Andrew:                              04:44                     And
I think it all starts with the mindset and buffet lays it out very perfectly
there. Yeah, I agree. And the thing that always strikes me when I listen to
talk is a couple of things kind of always come through. One, the conviction
with which he is talking about his ideas and his thoughts. You know, he, you
could tell that he believes in what he’s saying. And the other thing that
always comes through to me is how simple he makes it sound. We all know it’s
not simple. He’s a brilliant man, and it’s not simple, but like you were saying,
he, he’s, he, he’s how to control his emotions and turn out the note, tune out
the noise to help him think about the status of the business as opposed to the
wild fluctuations that are going on with Mr market in the market itself. And I
think those are the things that always kind of really come across to me
whenever I hear him talk about his ideas about investing in his thoughts on
that.

Dave:                                    05:46                     And
I think this little snippet here really kind of illustrates that because he
keeps talking about the business and the cash flows of the business as opposed
to, you know, what an is saying or what the news is talking about. The
company’s talking about simply the cash flow from the business of what’s
happening with the business as opposed to, you know, all the other noise. And I
think that’s the thing that always really strikes me. Whenever I listened to
him talk, you can hear it in his tone. That’s not even that he believes it.
It’s like he’s just speaking facts and he’s, exactly now, Hey, this is how
this, yeah, it’s, it’s, it’s coming from a place where he, he believes what
he’s talking about. And this is a completely rational, factual thing. Like
there’s not, there’s no argument. You can’t argue with what he’s saying. It’s
just like, this is just a matter of fact way of talking about it is they always
strike me that way. And you can’t argue with his results either.

Andrew:                              06:47                     The
way he does it, he’s, he’s apart business center. He, they buy businesses, on
the whole they, they buy stocks and not all of them work out, but a lot of them
do where they’re just holding it forever and just collecting those cashflows.
And so you can look at this track record to see where his conviction comes
from. Yeah, exactly. And he, he always talks about that in his letters in his,
in his talks about how he’s a better investor because he’s a better businessman
and he’s a better businessman because he’s a better investor and he feels like
they’re, they’re very entwined, and he credits a lot of his success to becoming
a great investor because he’s been a good businessman and vice versa. And I
love that.

Warren
Buffett:                07:32                     If
you’re investing if I’m going to buy a half interest in a McDonald’s stand and
you’re going to run it or a McDonald’s franchise, you’re going to run it. I
look to the business to determine whether I made a good investment and I’m
concerned about, you know, whether we have new competition, how we do over the
year, but it’s the business I look at when you’re just looking at the price of
something you’re not, you’re not investing. I mean if, if you buy something
Bitcoin, for example, or some cryptocurrency, you’re not looking to the asset
itself to produce anything. If you buy an apartment house, you’re looking at
all of the apartments. I was still here by a farmer. You look at a farm does,
if you buy a whole business, you’re looking at how the business does. If you
buy a part of a business, why shouldn’t you look at how the business is going
to do?

Andrew:                              08:14                     I
liked that. So I’m going to relate it to what I’ve seen personally in the past
couple of years. I’m not going to give away the stock ticker is because these
are recommendations that you let their subscribers pay for, but I’m just going
to lay it out as these different types of stocks. So I have a stock I bought
that’s in the financial industry, deals with asset management. I have another
one that is in retail, more particularly like the mall stores. And then I have
a third one that is chemical company that, which is a very big generalization
because they do all sorts of things and they have different segments that are,
some are more profitable than others and it’s, it’s a very confusing business,
but each of these, so each of these have had somewhat better times to own the
stock and worst times I own the stock.

Andrew:                              09:12                     So
I’ll start with the asset management business. And this is one that I started,
it, it, it turned out pretty good. And then it was a dividend fortress and then
things just really, really went South. So the stock dropped 20, 25%, something
like that and stayed down there for a long time. And even to this day, it’s
starting to hover around where I bought it that, but it’s just, it’s one of
those stocks that leaves a sour taste in your mouth. Right. And I’ll contrast
that to the chemical stock. I also bought this one I’ve; I’ve, I bought into
several times. The first two times I bought in the stock continue to rise, and
it was one of the top performers, not not like the top three, but maybe like the
top five, something like that. And so it was a stock that was, that was a
fruitful investment.

Andrew:                              10:11                     And
then some of the commodities that were involved in this industry took a turn.
And you know, the way commodities work is they’re not all perfectly in tune
with the economy. So some might have downtime while others have uptime, and
that could be independent of the overall economic cycle. So with this one, I
added it again cause it still looked like a good value. And the third time
after I added, then now it dropped and it went, it dropped pretty far where my
previous gains got erased. And now it’s, it’s starting to work its way back up.
It’s still at a substantial loss I think like 10 or 20% to my portfolio. And so
as I look at some of the, like these two in particular, which are the two
stocks that really, or Glenn the, the two glaring weaknesses in my portfolio as
of right now.

Andrew:                              11:14                     Right.
So, so the reason I bring these two stocks up is when buffet talks about, you
know, looking at what the, what your investment does, what the price of it’s
done, and then what the business has done. It’s very easy for me to look at
both of those stocks and because they have been two of the worst performers as
of the past 12 months. So really hate on both of those businesses where it,
regardless of what’s going on inside the business, you look at the UC red and
you look at the negative percentages, you look at that cost basis and then how
much it’s worth now and, and it, it can be very frustrating, right? Whether you
have one mistake or 20, but you know, when I look at these two, what I need to
do and something that Buffett’s speaking to here is instead of looking at
what’s, what’s the stock price done, look at how the financials have done.

Andrew:                              12:15                     So,
in my case, the asset management business, their top line, and bottom line have
been flat if not like slowly declining. And for the chemical business, they see
these swings and in their past five years things have gone up quite a bit and
then they’re just starting to decline. So really you have one stock that’s been
floundering for like five years and one who’s just starting to kind of flounder
and the future looks a little bit uncertain and like things aren’t going to
continue in the straight line. So I’m trying to paint the picture of these two
different businesses. And so from a buffet point of view, I think it makes a
lot of sense to look at the chemical business and say, well, it’s had such
great success up to now. And just because all of that success brought a lot of
popularity with the stock and it got bid up pretty high.

Andrew:                              13:17                     And
so at the first sign of that prosperity slowing down, then a lot of investors
fled the stock. Whereas with the S the asset management company, things have
been flat for a while and there’s, there’s this really no, no sort of growth of
all either looking into the future or looking at the past. And so I think what
buffet would speak to if he were talking to me and looking at the situation is
like, Hey, don’t get too worried about the stock that went up high and then
went down a lot. When you understand that the business is still fine and over
the very long term it’s growing and having a nice trend and contrasting that to
the other one where it’s like, Hey, maybe this business might be a little bit
more problematic because of the declining revenue and the declining earnings.

Andrew:                              14:18                     So
I think looking at it from that perspective, rather than just writing off both
of these stocks as they lost me more money than any other stock in my
portfolio. So I am just either going to cut those losses, or you’re just going
to look at these stocks and never want to touch them again. Because, you know,
sometimes a great opportunity in your portfolio can be the S the various stocks
have, they’re beaten down, and maybe those are the stocks you need to re upon.
And if you’re bringing this mindset that while the stock has gone down, I don’t
want any part

Dave:                                    14:52                     Of
it anymore that can, you know, that can lead to a lot of missed opportunity.
And, and really when you start to have a mindset where you’re thinking one way
against the stock, and it’s kind of unfair to the business, I think that can
craft your decision making and lead to bad buy or sell decisions.

Announcer:                        15:11                     Hey
you, what’s the best way to get started in the market? Download Andrew’s free
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you  won’t regret it.

Dave:                                    15:23                     I,
I like how you are using the business model as a basis for deciding as opposed
to the price and just what’s going on with the price. And I think that’s really
what w Warren was trying to get at was that you need to look at the business
itself and try to ignore as much as you can what is going on in the stock
market because there are so many forces at play with different companies that
we’re not really, you’re not going to have a good, true sense of how the
company is going to do for some time. And, and it was listening to a podcast
of, from that Toby Carlyle was doing recently. And one of the things that he
talked about what’s struck me, and I think Warren buffet would probably say the
same thing, was value investing can be painful because it sometimes could take
a while for the company to realize what you think it’s worth.

Dave:                                    16:29                     And
that could be a year, two years, three years, five years before you see what
you think the company is worth. And you may have to endure some dips and maybe
even some dramatic ones like Andrew was referring to with a couple of the
companies he was talking about. And I think that’s something that can be very
stressful and turn people off about this investing. You know, value investing
over the last, what eight to 10 years has not done the greatest compared to
other styles of investing. But it seems to be making more of a comeback. And I
know that we’re a buffet. His style investing really kind of can take a beating
when there’s a long bull market, but when there is downturn in the market,
that’s where we were when he makes his hay and it’s really because he’s looking
at his view doesn’t change based on the boots swing of whether everything’s
going up or whether everything’s going down.

Dave:                                    17:37                     He’s
still looking at the basic function of the business. Is this company producing
what they produce? Are people still buying it? Is it still making money? And if
all those things are still true, that even though the stock price may have gone
down 30 or 40% all the other characteristics of why he buys the company and why
he’s interested in it are still the same. That he knows through his experience
in all the time that he spent in a market that the, that the price will rebound
eventually. And so he’s basing all of his investment decisions on the actual
business as opposed to the price fluctuations from day to day, month to month,
year to year. Because a lot of that time, that can be noisy and it can be
things that you have no control over. But when you’re looking at the income
statement for Walmart, it’s, you know, it’s going to tell you what’s going on
with the company. And regardless, whether it’s at $70 a share or it’s $102 a
share, the underlying businesses, it’s selling what it’s supposed to sell. Are
people buying it and are they making money? You know, as our profit margin has
stayed the same or all those things still the same, then it’s still the same
business regardless of the ups and downs of the price. And I think that’s
really what Warren’s tried to say here.

Andrew:                              19:01                     Yeah.
You bring up the, you know, looking at the income statement as an example,
Walmart or some other stock you’re looking at. And I don’t know if I’ve said
this in the past, I’m going to say it again. If I did, why I like to do, I have
a spreadsheet where I have every stock that I own, and you know, you can be
fancy like I am and set it up so it synchronizes with the market and so you,
you kind of get live ticker data and everything like that. But that’s a nice
feature to have. But I’m not focusing on that. When it comes to maintaining a
portfolio, what I do on this spreadsheet is I have a column and I put the month
for every stock on there. What month does their next annual report come out?
And then I either leave the box on color, they’re colored and so every month I
can look at that spreadsheet and I can look at which stocks have annual reports
coming up and then I can update my VTI spreadsheets with the new annual report.

Andrew:                              20:06                     You
know, look at that income statement, look at the new balance sheet and look at
the cash flow statement. And now I have context on how the business is doing
from the year, the year of the year. And I think that’s been very, very helpful
for me to keep myself grounded regardless of how the stocks move in the market.
I’ll give one more example because I think this is, Oh another way to look at
it, but from the other side, so I have a stock that I bought in, I think it was
early 2015 the ticker symbol is L R C X Lam research and it’s been the best
stock I’ve ever bought as far as the life of the portfolio so far. And so this
is stock. Luckily I got in one, the price to book was something ridiculously
low, like something like 1.5 or something and just whatever happened with it.

Andrew:                              20:58                     You
know, Tech’s been crazy over the past few years. Semiconductors have blown up.
Certain stocks like AMD and micron, they’ve shot to the moon. And so other
companies that support these stocks and sell to these stocks have made a lot of
money too. So Lam research is one of those who are not directly in
semiconductors, but they work with semiconductor equipment and, and you know,
have, have their various products and everything like that so that a lot of the
sectors related to just kind of tech, in general, took off through those years.
And so I finally sold it a cow a couple of months ago and it was a really tough
decision for me to do because this thing was like my Darlene, you know, every,
every month I would look at the portfolio, I would see those return numbers
based on how these tickers are moving. And then it was like, Lam research never
failed.

Andrew:                              21:57                     It
always made my portfolio look good. But the most recent annual report they had
showed that they very, very aggressively went into debt, like the debt to
equity just shot up. And that is something that, that is concerning to me as an
investor. Not only that, the price of the book had risen to a point where it
was somewhere like seven or eight. So that in and of itself is a huge kind of
marker for overvaluation. And when you combine that with what’s going on with
the business, I didn’t like how much debt they were piling on it. It just
didn’t make sense to me that they were having so much success and so much growth
yet now they were super aggressive with their debt. And so I made that tough
decision and I sold it. And you know, it has gone higher since I’ve sold it.

Andrew:                              22:54                     But
it’s, it’s one of those things where I’ve had to stay grounded and understand
that if I’m going to look at a stock as a business and if the business starts
to do something that you don’t like and it goes counter against your values. To
me as an investor with my values, I like stocks. I keep it conservative or
reasonably conservative. And so when the stock kind of steps out of that
boundary, then I’m just going to have to cut ties. And so whether that’s a
stock that’s been a darling to me or been, you know, a huge embarrassment and
disappointment, the action is the same. And to get to that action, you need to
have the right focus and, and be looking at the right things. And so I think
that’s two different ways you can apply what buffet has said and use that to
make smart decisions with your portfolio. Moving on to the next to quote

Warren
Buffett:                23:55                     [Inaudible]
people. If they take of stocks as pieces of business, they’d be so much better
off than things. You got those little things that move around and price. And I
think with Berkshire, we have an unusual number of people. The shareholders
would look at Berkshire as a bin. They look at it as a savings account. They
put some money in 20 or 30 or 40 years ago. We retain it and reinvest for them,
but we’re where their savings account and, and

Andrew:                              24:18                     Okay.
Dave, I’m going to put the spotlight on you now. Are you a Berkshire
shareholder? I am. Okay. That shouldn’t have even been a question. Right? I
should know that. Are you? Oh, of course. So I’ll tell you one story. I don’t
know if I’ve told this on the air or not yet. So I went to Omaha and I’m
blanking on whatever year it was, but it was somewhat recently and it was
amazing to me to see all the different people that are there and really how
this one man in this city, in the middle of nowhere in Nebraska was able to
bring all these people together. And when you go to one of these events as a,
as a Berkshire shareholder, you, you can be, you can be a shareholder and have
one Berkshire share, one share of Berkshire B, which is like $300 or something.

Andrew:                              25:15                     And
you’re allowed to go to this annual shareholders meeting that they hold every
year. And it’s now like a huge conference thing. I would say it’s probably the
most popular sort of investing place or event that we have as of now. I don’t
know. You have, you have CNBC. I don’t know. I, I’m not able to think of, of
like a, a, a, something that’s similar to that. So I know I’ve talked in the
past about how I went, but it was just, it was, it was amazing to me to talk to
somebody who said, yeah, basically my financial strategy has been buying Berkshares
shares, and now he’s a millionaire. I think that’s; it can go the show that the
way that a lot of money is made in the stock market does not necessarily have
to do with all this effort, right?

Andrew:                              26:20                     All
a lot of sweat and work isn’t always correlated with wealth and I think it’s
because of the way Buffett has structured his investing, the way he looks at
business, the way he understands how wealth creation, the compounding of
earnings, all of these things take a lot of time. And so as somebody who’s
trying to make money in the stock market, you can look at it as, well, I’m
going to try to muscle my way into more money. Or you can look at somebody like
Buffet and understand that these are the shareholders of Berkshire were people
who just partnered with buffet, whether buffet knew them personally or not. They
trusted their money in the Buffet and Buffet was able to use the money that
Berkshire had to buy businesses outright. Or it’s a buy part ownership in
businesses through stocks and let the businesses inside of that grow the
capital.

Andrew:                              27:25                     And
so as an individual investor yourself, when you look at your money in that way,
instead of trying to be clever or trying to, you know, really look at the most
highly risky stocks, the ones that are the most exciting, the ones that make
the headlines. Instead, if you think of the slow and steady long-term approach,
then you know, if you find the right couple stocks or the right, you know, you
find your Warren buffet so to speak, then it can be kind of like putting money
into a savings account and seeing the explode after several decades like, like,
like the Berkshire shareholders have seen. So a lot of like power with, with
what he’s saying. And he’s lived it and he’s seen it. And it’s just amazing how
you can contrast what buffet has done and the wealth he’s built with a lot of
different other ventures, I guess through wall street that has not been nearly
as successful.

Andrew:                              28:34                     And
if you boil down his approach, it’s really kind of boring, slow patient and
prudent and it can be a great grant, a great way to, to build your wealth.

Dave:                                    28:45                     It’s,
it’s, it’s fascinating to see there really is, and it’s it, you know, I keep
coming back to how, how simple he and Charlie mugger always, you know, talk
about, to them it’s, it’s finding good businesses and investing in them and
finding people that are going to run them the way that they would, you know,
like to see them run and just sitting back and enjoying the ride and you know,
not worrying about all the different machinations that go on in wall street and
trying to get too fancy. I mean, they, you know, they, they talk a lot about
the too hard pile and you know, Warren is famous for his reading as, as well as
Charlie is and you know, darn well that they’re reading through everything and
they have, you know, ideas of what companies

Dave:                                    29:42                     They
would want to purchase and things that’d be Berkshire’s in a way, different
situation that, you know, that I am. And that goes without saying, but you
know, their, their investment thesis and what they’re trying to do is
completely different than what we’re trying to do. But the P the basic premise
is still the same, you know, trying to find you know, great business at a good
price and investing in it and just sitting back and letting them do all the
work. And it doesn’t need to be super hard, super complicated, you know, very
involved, you know, with higher-level math and all those kinds of things. It
just doesn’t need to involve that. But, you know, wording how the business
works of learning what it is that they do. And it’s like anything else, you
know, the more you do it, the better you’re going to get at it.

Dave:                                    30:32                     And
the more time that you put in doing those kinds of things. And I was thinking
about what Andrew was doing with his spreadsheets and having, you know when the
annual reports are going to be coming out for those companies, and I, I can
pretty much guarantee that you know, after four or five years of looking at the
same company’s annual reports, he could pick up a tenor of what’s going to be
said and he could see the decisions that the management makes. And it all
starts to make a lot more sense because the more you familiarize yourself with
what the company does and how they do what they do and who it is that are
running the companies, the more comfortable you’re going to be with what is
going on with a business. And it’s, I mean, it’s a little bit of, I guess like
dating, you know, as you first meet somebody and you get comfortable with them
and you weren’t how they do their things and eventually you’re finishing
others, each other sentences and making them a sandwich without even having to
ask for it.

Dave:                                    31:33                     So,
you know, all those kinds of things. It’s just a familiarity with what it is
you’re doing. And I think that’s what strikes me so much about what it is that
Warren does. And again, how simple he makes everything seem. And it just
strikes me that he’s so, you know, convicted and he understands what it is that
he’s doing just because he’s, he’s put that knowledge that he’s earned to work
and it’s worked for him as so inspiring. And I love the way in all three
quotes, he’s very simple, and you know, it’s a very simple yet clear, easy to
understand the message.

Andrew:                              32:16                     And
I think I, I don’t think he would be so vocal about, about those things if he
didn’t believe that regular people like you or me could, you know, it’s not
like we’re going to surpass him or anything like that with, with our
performance, but in some way I follow in the footsteps and do good enough where
the effort is worth the while. And so, you know, just by listening to him or
reading one of his books I, I have one above my fireplace right now called the
essays of Warren buffet where it’s a collection of, of the different annual
report, what do they call them, the shareholder leathers that he’s done for,
for these annual shareholder meetings. Something like that. Or I’ve, I’ve
recommended this book in the past, the Warren buffet way. That one’s a great
book and lays out how buffet has invested in and done well. And I think it’s;
it’s very inspiring to me. It’s, it’s always been inspiring when I first
started and as I continued to invest every day, it’s, it’s, it continues to
inspire me. And I feel like there’s always something to learn from buffet
himself. So, I think we can learn a lot from it.

Andrew:                              33:42                     And
I think there’s a lot of potentials there if we pay attention and listen and
just try to apply the simple yet foundational concepts that buffet lays out.
And I think there’s been one theme that rings through all three of these quotes
and it’s, you know, look at it as a business. You’re part owner of a business.
It’s all about the business. Stop thinking about the stock market. All right,
folks, we’ll, that is going to be a wrap-up or discussion for this evening. I
hope you enjoyed our quotes from the uncle’s ward. I enjoyed grabbing them for
us to listen to and for eight or nine and have our little conversation. I
thought it was very interesting to hear how Ord had his kind of theme and he
stuck to it. Do you? It has a conviction to what he’s saying and all the
principles that he’s taught us have been fantastic. And you know, he shows us
that this is something that we can all do and we can’t do it. So without any
further ado, I’m going to go ahead and sign us. Go out there and invest with a
margin of safety if some of the safety, if we don’t hear from you, have a great
new year and we’ll talk to you next year.

Announcer:                        34:49                     We
hope you enjoyed this content. Seven steps to understanding the stock market
shows you precisely how to break down the numbers in an engaging and readable
way with real-life examples. Get access today at stockmarketpdf.com
until next time, have a prosperous day.

Announcer:                        35:14                     The
information contained is for general information and educational purposes only.
It is not intended for a substitute for legal, commercial, and or financial
advice from a licensed professional. Review. Our full
disclaimer@eeinvestingforbeginners.com.

The post IFB132: Warren Buffett on Investing in Business Vs Pricing appeared first on Investing for Beginners 101.

Dec 26 2019

35mins

Play

Rank #9: IFB105: Q&A: Is Acorns Worth it? Should I Buy Small Cap Stocks?

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers, your path to financial freedom starts now. Dave:                                    00:37                     All right […]

The post IFB105: Q&A: Is Acorns Worth it? Should I Buy Small Cap Stocks? appeared first on Investing for Beginners 101.

Jun 08 2019

28mins

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Rank #10: IFB55: The Worst Money Advice that Beginners Always Hear

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Welcome to episode 55 of the Investing for Beginners podcast.  Tonight Andrew and I are going to discuss some of the worst money advice you can get. Invest 10% of your income Investing in a quick fad to make money quickly Try to get to cute and taking on more complexity just for the sake […]

The post IFB55: The Worst Money Advice that Beginners Always Hear appeared first on Investing for Beginners 101.

Apr 11 2018

31mins

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Rank #11: IFB11: A Complete Guide to to the Most Useful Stock Valuation Methods

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Today we are going to talk about stock valuation methods. Andrew has a great ebook that he wrote a while back that talks a lot about how to value a stock. These are methods that I use personally every day . A breakdown of the 7 valuation metrics that we use P/E ratio and its […]

The post IFB11: A Complete Guide to to the Most Useful Stock Valuation Methods appeared first on Investing for Beginners 101.

Apr 12 2017

1hr 3mins

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Rank #12: IFB23: Warren Buffett Investment Advice to the Average Investor

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Welcome to session 23 of the Investing for Beginners podcast. I am Dave Ahern and I am joined by my co-host Andrew Sather. In today’s session we are going to discuss some quotes from the great Warren Buffett. Buffett is arguably the greatest investor of our generation, possibly ever and he has been a fountain […]

The post IFB23: Warren Buffett Investment Advice to the Average Investor appeared first on Investing for Beginners 101.

Jul 22 2017

41mins

Play

Rank #13: IFB87: Buying Stocks in a Downtrend, Selecting From a List of Stocks

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew and Dave to decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts. Now. Dave:                                    00:33                     All folks, we’ll work […]

The post IFB87: Buying Stocks in a Downtrend, Selecting From a List of Stocks appeared first on Investing for Beginners 101.

Jan 17 2019

38mins

Play

Rank #14: IFB04: Why DRIP Investing Your Stocks Should be Integral to Your Investing

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DRIP investing is one of the untapped resources to investors. It can be one of the keys to growing your wealth. Compounding is one of the eight wonders of the world, according to Albert Einstein. Utilizing it with DRIP investing is a great way to double compound your investments. We will discuss this and much […]

The post IFB04: Why DRIP Investing Your Stocks Should be Integral to Your Investing appeared first on Investing for Beginners 101.

Mar 01 2017

38mins

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Rank #15: IFB52: The Art of Finding Undervalued Stocks

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Alright, folks well welcome to Investing for Beginners podcast. This is episode 52 Andrew and I are going to talk about balancing the art and science of intrinsic value. Today we’re going to talk a little bit about intrinsic value, one of my favorite subjects and Andrew’s as well and this should be a little […]

The post IFB52: The Art of Finding Undervalued Stocks appeared first on Investing for Beginners 101.

Mar 15 2018

29mins

Play

Rank #16: IFB44: Back to the Basics Pt 2: Share Dilution on Wall Street

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This is part 2 of the 5 episode “Back to the Basics” series from The Investing for Beginners Podcast. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time. Here are the links to each of the episodes: Back […]

The post IFB44: Back to the Basics Pt 2: Share Dilution on Wall Street appeared first on Investing for Beginners 101.

Dec 29 2017

35mins

Play

Rank #17: IFB97: A List of Really Unwise Financial Decisions

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginning led by Andrew Sather and Dave Ahern. To decode industry jargon. Silence crippling confusion and help you overcome emotions by looking at the numbers. Your path to financial freedom starts now. Dave:                                    00:36                     All right […]

The post IFB97: A List of Really Unwise Financial Decisions appeared first on Investing for Beginners 101.

Apr 04 2019

33mins

Play

Rank #18: IFB115: How to Make Money with Dividends When It’s Just Pennies

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers, your path to financial freedom starts now. Dave:                                    00:37                     All right […]

The post IFB115: How to Make Money with Dividends When It’s Just Pennies appeared first on Investing for Beginners 101.

Aug 22 2019

41mins

Play

Rank #19: IFB45: Back to the Basics Pt 3: Stocks vs Other Investments

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This is part 3 of the 5 episode “Back to the Basics” series from The Investing for Beginners Podcast. Each episode covers the fundamentals of the stock market and investing to provide a solid foundation for those who are looking to compound their wealth over time. Here are the links to each of the episodes: Back […]

The post IFB45: Back to the Basics Pt 3: Stocks vs Other Investments appeared first on Investing for Beginners 101.

Jan 15 2018

48mins

Play

Rank #20: IFB104: Intrinsic Value Warren Buffett Style

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Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcasts. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers, your path to financial freedom starts now. Dave:                                    00:36                     All right […]

The post IFB104: Intrinsic Value Warren Buffett Style appeared first on Investing for Beginners 101.

May 30 2019

40mins

Play