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HEY! DID YOU KNOW…

 

  • The median age in the U.S. is 36.8
  • The median income in the U.S. is $51,939
  • The average 401k match is $1 for $1 up to 6%

A 36.8 year old investing 10% of their $51,939 income with a $3,116.34 match:
With just average stock market returns of 10% would have $1,114,479.31 by retirement.

Join 7,200+ other readers who have learned how anyone, even beginners, can easily make this desire a reality. Download the free ebook: 7 Steps to Understanding the Stock Market.

IFB34: The Truth about Analyst Reports Interview with Sasha Evdakov

 

analyst reports

Welcome to Investing for Beginners podcast I’m Dave Ahern, and Andrew Sather is as well. Tonight we’re going to have a special guest with us.

What we are going to learn in this episode:

  • The difference between fundamentals and technical analysis
  • Having a great mental state of mind helps your investing.
  • The motivation behind analysts recommendations
  • How to make education part of your everyday routine

His name is Sasha, and we’re going to have a little conversation between all of us so without any further ado Sasha, wouldn’t you go ahead and tell the two or three people that are not familiar with you out there a little bit about you.

Sasha: Hey thanks for having me. A little bit about me as far as I guess my background goes that’s related when it comes to stock trading. I mean I got into stock trading when I was a young teenager, and a lot of that comes from taking the funds that I had when I used to do a lot of web development.

So my mom was into investing simply because she was a private healthcare nurse and all the older folks. What they did in Florida was watch their investors, watch what their investments and see how things were going.

And slowly she got interested in that and slowly I got interested in that and all the money that I made from the web development, graphic design field and marketing as well.

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IFB33: Before Investing in Real Estate… Check out REITs

 

REIT

Welcome to Investing for Beginners podcast, I’m David Ahern, and Andrew Sather’s here tonight. We’re going to talk about REITs. We have episode 33 tonight, and we’re going to talk a little bit about REITs.

What we will learn today:

  • What a REIT is
  • How to value them, hint: the same way as any other stock
  • How a REIT can help your portfolio
  • REITs can give you exposure to the real estate asset class
  • How to treat dividends in REITs from a tax perspective
  • Whether or not they are a good investment for you.

We had a listener comment on our podcast earlier a couple of episodes ago, and we wanted to go ahead and answer his question and speaking of answering this question. Andrew has his comment up, and he wanted to go ahead and get us started.

Andrew: yeah so this is from Bart. He says this was a comment he left on the blog on one of the episodes.

He says “guys love the show. The quick question whether your thoughts on REITs, they seem to pay high dividends but is there a catch?”

So maybe we should start off and introduce what a is REIT. Its REIT stands for Real Estate Investment Trust; it is basically like it says in the title it’s a trust and it usually holds a portfolio of real estate different properties. And there are different categories that you can see when it comes to these.

Some of them will hold commercial real estate so think the malls and office buildings and the real estate that’s attached to those. Some of them do residential real estate, there are other types which I don’t know the nitty-gritty on all of them. But there are quite a few different industries around REITs. And so basically they hold these basket of real estate properties, and they hold them and their income-producing properties.

Then what the owners will do is they’ll reallocate those whatever income comes from the trust then gets distributed to shareholders.

So it works like a stock as in you can buy it in the stock market on an exchange. You can see that price go up or down you get paid a dividend based on what the earnings are, and so it has a lot of similarities to stocks, but it also has some technicalities which I think we can get into as.

Dave: well yeah they’re they’re interesting, they’re different beasts for sure. They’re you know the valuations of them are a little different than other regular stocks. Just because of the way that they’re set up.

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IFB32: An Example Buy and Sell Stock Checklist

stock checklist

Welcome to investing for beginners podcast I’m David Ahern, and Andrew Sather is here with us tonight. We’re going to talk about investing checklists; we’re going to talk a little bit about when to use checklists and how they can help you when you make buying stock decisions as well as selling stock decisions.

  • Checklists can help control your emotions
  • They are great at helping you avoid mistakes
  • They can be as short as four questions or as long as hundreds
  • Stock checklists are perfect for buying and selling decisions

I’m going to start us off and talk a little bit about my friend Mohnish Pabrai. I’ve talked about him in the past, he’s an investor that’s originated from India, and he’s a value investor cut right out of the Charlie Munger, Warren Buffett ilk.

He’s very conservative, and he’s been very very successful with his investments I believe he’s in the high40% range in returns over the last ten years or so so he is one of those gentlemen who has a very concentrated portfolio.

I believe he only has six or seven stocks in his portfolio right now and

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IFB31: Millionaire Jobs: Interview with the Engineer Who Did it in 10 Years

millionaire jobs

Alright, folks well welcome to Investing for Beginners podcast I’m David Ahern, and we have Andrew Sather with us tonight we’re going to do a little something different off our normal beaten path.

We’re going to interview someone tonight; we have a guest with us tonight who has found success with finding freedom from money, and his name is Justin.

  • You can retire early if you plan and stick to your plan
  • You don’t need to make seven figures to retire early
  • The 4% rule and how it is your friend
  • Patience is a virtue in the stock market
  • Being frugal and enjoying the simple things can lead to lifelong happiness

We’re just going to go ahead and chat a little bit so without any further ado Justin could you give us a brief synopsis of your life up to this point tell us how you got where you are.

Justin: Yeah, sure thing, so I’m Justin I retired at 33 four years ago almost to the day. I used to work as an engineer here in Raleigh North Carolina about ten years right out of college. Started working and you know to save my money invested it bought a pretty basic house here in Raleigh and just did not upgrade the house didn’t upgrade the cars until after I retired. I married my wife is also retired now she just she retired in her 30s, and she’s just crossed another big milestone birthday. So I’m not going to say how old she is but probably best yeah she might if she listens to this but she probably will she’ll probably do some, so she’s 29 again. We also have three children age in12 and five, and as a few days from now, they will get all three in school all day, so it’s a big transition period for us to have some free time during the school week and yeah that’s that’s pretty much you know me in a nutshell.

Andrew: nice I love it. I’d like what your typical day sounds like because I a lot of us who are listening to the podcast. We see financial freedom as kind of the ultimate goal and that all mean different things, for different people. You know what’s there’s a lot of work a lot of discipline and a lot of saving and investing. And so you know why should we go through all that and what kind of things can we look forward to if we do finally achieve financial freedom.

Justin: yeah sure I guess the at the big picture level there’s sort of a bipolar lifestyle I’m living during the school year when our kids are in school from roughly September through the end of May early June about nine months per year they’re in school. And, so we’re here in Raleigh NorthCarolina I’ve taken an easy kind of slow pace of life lots of relaxation. Simple stuff around town and then the another part of our lifestyle personality is a big summer trip.

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IFB30: Quotes of Wisdom from Baupost Group’s Seth Klarman

Welcome to investing for Beginners podcast I’m David Ahern, and we have Andrew Sather here as well tonight. We’re going to do a review of an article that I came across from a blog that I read on a daily basis.

It’s called the Acquirers Multiple, and it is owned by a gentleman named Tobias Carlisle. He’s a very very amazing writer, and he’s written some great books. And he has this blog that he’s a member of that one of his authors that work for him writes some great articles.

The article that I came across I shared it with Andrew a couple of weeks ago, and we both liked it, and we thought this would be a great opportunity for us to talk a little bit about a gentleman named Seth Klarman.

We’ve talked about him a little bit in the past before, but this article that was written kind of outlines 13 tips on how to find bargains. Seth Klarman if you’re not familiar with him has written an amazing book on the margin of safety, and it’s unavailable more or less. You can buy an Amazon I believe for a cool thirteen hundred dollars a book if you wish.

Apparently, he did not release a lot of copies of the book and so it’s very very rare and hard to find I was fortunate enough to be able to find it. I read it through the professor of the local college had it, and the finance professor was kind enough to allow me to borrow it to read it. Andrew and I are going to kind of pick and choose through the tips that the gentleman shared in this article.

It’s a commentary from the collected wisdom of Seth Klarman, and it’s a compilation of quotes from the by Baupost Group founder Seth Klarman.

He writes an annual letter just as Warren Buffett does, but it’snot available to the public. It’s usually only available to his you know the people the insiders the people that invest in his fund.

What we will learn in today’s episode:

  • How to find a Margin of Safety
  • You need to do your research to find great companies
  • Be patient and wait for your pitch
  • Buy low and sell high, look for fear and greed in the market
  • Don’t try to time the market, look for your value and buy with a margin of safety

So I’m going to read a couple of the quotes and talk a few minutes about them and then Andrew is going to do the same. I also will link to the article in the show notes for this episode so that you will be able to find this article and read through them as you wish and find some things that you might like.

The first one that I came across that I liked was

“great investments don’t just knock on a door and say buy me.”

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