Beginner’s Guide to the Price to Book Ratio
“Price is what you pay. Value is what you get.” –Warren Buffett The price-to-book ratio remains a top valuation metric for certain companies like banks, insurance companies, or railroads. Numerous variables influence the choice to purchase a certain stock. Of course, the first factor is how well the underlying business does. Equally crucial is determining […]
Everything to Know about ROE, with Average ROE by Industry Data
“Focus on return on equity, not earnings per share.” –Warren Buffett One of my favorite Buffett quotes of all time. Focusing on the returns on equity, and not earnings, forces us to recognize the company’s performance in managing their capital versus strictly the earnings and nothing else. Buffett likes to compare stock returns to the […]
IFB236: Differences Between ETFs and Mutual Funds, and Investing in Companies Beyond Their Fair Value
Welcome to the Investing for Beginners podcast. In today’s show, we answer three great listener questions: *The differences between investing in mutual funds and ETFs *Why we advocate for investing in individual stocks *How to deal with dollar cost averaging into a company that has grown beyond its fair value *How to start building your […]
