Stocks vs. Options: The Beginner’s Truth [No Math Required]
If you haven’t already, you’ll quickly discover the sexy, fast moving counterpart to stocks — options. It’s hard not to stumble upon these shiny derivatives. Brokerages constantly pitch them as a quick way to massive returns. (They’re also a quick way for brokerages to generate commissions.) “Options can double, triple, or even quadruple in price […]
Levered Free Cash Flow: The Core Lessons from Valuation Textbooks [Distilled]
Free cash flow and a “DCF” (a way to guess what a company is worth) go together like peanut butter and jelly. But there is a specific type of cash flow called levered free cash flow (also known as FCFE). Should you use it to value a company? How does debt change a company’s value? […]
The Price to Sales (P/S) Ratio Formula Explained
Price to Sales (“P/S”) is one of the more common and simple relative valuation ratios used to generally compare how expensive or cheap a stock is compared to its peers. The price to sales ratio formula itself is simple, it is Price (Market Cap) divided by Sales (Revenue). The reason we use Market Capitalization for […]
AAR23 – How to Get the Best Deal on a House
You can find Evan’s home buying calculator at einvestingforbeginners.com/home. In this episode, Evan Raidt is joined by Andrew Sather to answer a listener’s question about how Evan was able to secure a 4% mortgage rate in today’s market. They break down the process of finding below-market rates, discuss the pros and cons of new builds […]
Some of the Biggest “Lightbulb Moments” of Our Investing Journey
In this episode of the pod, Andrew and Dave discuss pivotal ‘light bulb moments’ from their investment journeys. They explore essential insights including company growth’s impact on valuation, the importance of understanding a business before investing, differentiating between types of stock dips, and critical lessons learned from investment mistakes with companies like Intel, Crown Castle, […]
Investing in Yourself: Skills, Mindsets, and Tools for Stock Pickers
In this episode, Andrew and Dave dive into the crucial yet often overlooked investment of self-improvement. The discussion covers various topics, including the significant ROI of investing in your own skills, the importance of compounding knowledge over time, and the mindset required to be a successful investor. They emphasize building a robust knowledge base through […]
The Truth Behind the Most Famous Slogans on Wall Street
In this episode of the podcast, Andrew and Dave dive into the truth behind some of Wall Street’s most famous slogans. They discuss the deeper meanings and practical implications of slogans like ‘Greed is good,’ ‘Buy low, sell high,’ ‘The trend is your friend,’ and many more. The conversation covers the dangers of greed, the […]
Financials Demystified: Everything Outside EBIT
In this episode, Andrew and Dave dive deep into understanding the income statement beyond EBIT. They discuss the importance of taxes, the lifecycle of companies and its impact on financials, and Warren Buffet’s insights on tax deferred assets. The hosts also explore interest expenses, interest income, and their significance to a company’s financial health. They […]
Don’t Get Too Excited About AI Headlines Hype. Here’s Why
In this episode, Andrew and Dave discuss current news surrounding AI partnerships and investments, focusing on major deals involving OpenAI, Oracle, AMD, and Nvidia. They analyze the implications of a $400 billion deal between OpenAI and Oracle, expressing concerns about OpenAI’s profitability and the feasibility of such large-scale financial commitments. The conversation also explores how […]
The Secret Business Model Behind Visa and Mastercard
In this episode, Andrew and Dave delve into the intricate business models of Visa and MasterCard. They discuss the performance and history of these companies, emphasizing Visa’s American-centric focus compared to MasterCard’s international reach. The conversation covers the concept of a duopoly and how both companies have become dominant players through strong network effects. They […]
