Episodes

  • IFB370: Free Cash Flow Metrics - Margin, Yield, and Conversion Explained

    IFB370: Free Cash Flow Metrics - Margin, Yield, and Conversion Explained
    Dec 16 2024
    In episode 370 of the Investing for Beginners Podcast, Dave and Andrew tackle listener questions about PE ratios, target date funds, debt-to-equity ratios, and free cash flow metrics. Learn how to evaluate companies, understand expense ratios in 401(k)s, and use DCF models to value businesses. A must-listen for beginner investors! [00:01:21] Missing PE ratios? It’s often due to negative or missing earnings. [00:03:12] Target date funds simplify rebalancing but limit investment flexibility. [00:06:57] High expense ratios in 401(k)s vary by employer and fund options. [00:11:46] Debt-to-equity ratios must be evaluated alongside interest coverage metrics. [00:18:05] DCF models can include debt, depending on the valuation approach. [00:26:00] Free cash flow margin measures efficiency in converting revenue to cash. [00:27:15] Free cash flow yield helps identify undervalued stocks with strong returns. [00:34:42] Free cash flow conversion shows how well earnings turn into cash flow. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year. Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    45 mins
  • Understanding Home Builders: Insights from Brett & Ryan of Chit Chat Stocks

    Understanding Home Builders: Insights from Brett & Ryan of Chit Chat Stocks
    Dec 12 2024
    The Investing for Beginners Podcast dives into the fascinating world of home builders with Brett and Ryan from Chit Chat Stocks. Learn how interest rates, land options, and market dynamics shape the industry. Discover key metrics, regional trends, and strategies for evaluating home builders as potential investments in this insightful and engaging discussion. [00:02:06] Home builders face unique challenges due to rising interest rates. [00:03:08] Industry dynamics vary by geography and home type (entry-level, luxury). [00:04:12] Home shortages benefit new builds as existing homeowners stay put. [00:05:10] New home sales offset declines in existing home sales. [00:14:11] Land option models reduce risk for asset-light home builders. [00:27:18] Mortgage rate buy-downs incentivize buyers despite affordability challenges. [00:33:22] Home builders’ valuations reflect cyclical risks and macroeconomic uncertainty. [00:41:02] Key metrics: cancellation rates, inventory turns, and land ownership models. For more of Brett & Ryan Chit Chat Stocks Podcast Chit Chat Stocks on X Brett on X Ryan on X Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year. Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    55 mins
  • IFB369: How to Handle Stock Losses for Beginners

    IFB369: How to Handle Stock Losses for Beginners
    Dec 9 2024
    Welcome to Episode 369 of the Investing for Beginners Podcast! Today, we’re diving into listener questions about Disney stock, Warren Buffett’s legacy, dividend reinvestment strategies, and using DCF valuation to analyze stocks. Whether you’re a beginner or seasoned investor, this episode is packed with actionable insights to help you make smarter investment decisions. [00:00:50] Submit questions via Spotify, email, or social media platforms. [00:01:18] Listener asks: Should I sell Disney stock or hold longer? [00:02:19] Evaluate Disney’s fundamentals: Do you believe in its long-term growth? [00:03:56] Selling stocks is harder than buying due to loss aversion. [00:07:15] Consider opportunity cost: What could you gain by reallocating funds? [00:14:46] Warren Buffett’s philanthropy: How it might impact Berkshire stock. [00:21:12] Dividend reinvestment: Auto-reinvest vs. manually choosing new stocks. [00:30:15] DCF valuation: Use it to assess growth and stock price alignment. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year. Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    40 mins
  • Growth vs. Quality Investing with Pieter Slegers and Kris Heyndrikx

    Growth vs. Quality Investing with Pieter Slegers and Kris Heyndrikx
    Dec 5 2024
    In this episode of the Investing for Beginners podcast, hosts welcome Pieter from Compounding Quality and Kris from Multibagger Nuggets. They discuss the impact of macroeconomic and political factors on investing, the importance of company culture and CEO vision, and strategies like dollar-cost averaging for navigating market volatility. 00:00:53 - Discussing macroeconomic impacts on investing amid U.S. elections. 00:01:34 - Kris emphasizes ignoring macro noise for long-term investing. 00:03:06 - Importance of focusing on business performance over stock price. 00:04:22 - Pieter highlights differing investment approaches with Kris. 00:05:02 - Both agree macroeconomics shouldn't dictate investment decisions. 00:08:19 - Pieter and Kris discuss their unique investing inspirations. 00:11:14 - Kris advises aligning portfolios with personal investment strategies. 00:16:12 - Importance of mindset and patience in successful investing. Learn more from Pieter here: X: @QCompounding Substack: Compounding Quality And Kris here: X: @FromValue Substack: Multibagger Nuggets Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial! Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    1 hr and 11 mins
  • Understanding the PIVOT Framework: Exploring the Moats of Costco, American Express, and Google

    Understanding the PIVOT Framework: Exploring the Moats of Costco, American Express, and Google
    Dec 2 2024
    Welcome to the Investing for Beginners podcast, where we explore essential strategies to enhance your investment journey. In this episode, we delve into the PIVOT framework, discuss the competitive moats of companies like Costco and American Express, and highlight the importance of community in making informed investment decisions. 00:00:00 - Introduction to the Investing for Beginners podcast and today's topic. 00:00:52 - Overview of the PIVOT framework for better investing. 00:01:07 - Explanation of PIVOT: Portfolio, Idea, Valuation, Observed, Thinking. 00:01:42 - Discussion on Costco's competitive moat and business model. 00:02:26 - Introduction to scale economy shared with Azure example. 00:03:40 - Defining moats and their importance for investors. 00:06:08 - American Express's unique business model and customer loyalty. 00:25:08 - Google's economic toll booth model and growth strategies. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year. Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Ama Learn more about your ad choices. Visit megaphone.fm/adchoices
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    46 mins
  • Exploring the PIVOT Framework: Understanding Key Investment Metrics

    Exploring the PIVOT Framework: Understanding Key Investment Metrics
    Nov 28 2024
    Welcome to the Investing for Beginners podcast, where we delve into the PIVOT framework's essential metrics. In this episode, we explore gross margin, current ratio, and return on invested capital (ROI C). Discover how these financial metrics can enhance your investment analysis and help you make informed decisions in the stock market. 00:00:00 - Introduction to the Investing for Beginners podcast episode. 00:00:50 - Overview of the PIVOT framework and its components. 00:01:09 - Discussion on gross margin as a beginner metric. 00:03:33 - Importance of gross margin in comparing industry peers. 00:10:01 - Introduction to the current ratio for financial health. 00:12:12 - Calculating the current ratio from balance sheet data. 00:17:12 - Exploring ROI C as an expert-level investment metric. 00:27:04 - Benefits of the School of Investing for learners. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year. Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    41 mins
  • Understanding the PIVOT Framework: A Deep Dive Into Valuation

    Understanding the PIVOT Framework: A Deep Dive Into Valuation
    Nov 25 2024
    Welcome to the Investing for Beginners podcast, where we simplify complex financial concepts for novice investors. In this episode, we continue exploring the PIVOT framework, focusing on valuation techniques like the PE ratio and discounted cash flow models. Learn how these tools can enhance your investment strategy and decision-making process. 00:00:00 - Introduction to the Investing for Beginners podcast episode. 00:00:54 - Overview of beginner, intermediate, and expert resources. 00:01:19 - Discussion on the importance of the PE ratio. 00:02:05 - How to calculate and interpret the PE ratio. 00:05:22 - Comparing PE ratios across different industries and sectors. 00:13:49 - Introduction to discounted cash flow (DCF) models. 00:24:08 - Explanation of discount rates and their significance. 00:35:55 - Overview of the School of Investing and its benefits. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year. Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    46 mins
  • Exploring the PIVOT Framework: Idea Generation

    Exploring the PIVOT Framework: Idea Generation
    Nov 21 2024
    Welcome to the Investing for Beginners podcast, where we simplify the world of investing. Today, we explore the PIVOTT framework, a powerful tool for enhancing your investment strategy. Join us as we dive into idea generation, a crucial step for stock pickers at any level, and discover actionable insights to boost your portfolio. 00:00:00 - Introduction to the Investing for Beginners podcast and today's topic. 00:00:52 - Explanation of the PIVOTT framework for better investing. 00:01:06 - Breakdown of PIVOTT: Portfolio, Idea, Valuation, Observing, Thinking. 00:01:27 - Focus on idea generation for stock pickers. 00:02:12 - Importance of finding unique, undervalued stock ideas. 00:04:32 - Using stock screeners to filter potential investment opportunities. 00:05:48 - Buy what you know: Familiarity as a starting point. 00:10:16 - Observing everyday products for potential investment ideas. Today's show is sponsored by: Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial. Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial! Sign up for a one-dollar-per-month trial period at shopify.com/beginners. Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING Get 10 FREE meals at HelloFresh.com/freeinvesting! Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners. Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started. Find great investments at Value Spotlight Have questions? Send them to newsletter@einvestingforbeginners.com Start learning how to value companies here: DCF Demystified Link SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Amazon | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices
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    39 mins