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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 folks, welcome to Investing for Beginners podcast. This is episode 146 the night. Andrew and I are going to take a break from doing some interviews with some of the great guests that recently, and we’re going to ask some listener to answer some listener questions tonight. So we’ve got a few fantastic ones that we thought we would go ahead and answer on air for you guys. So I’m going to go ahead and start with the first one. So this one says, dear Andrew, first week, can I thank you for all the help you’ve given me despite being from the UK in England, your podcast is by far the best investing podcast out there. The main question is, how do you check if a company has been buying back shares when they repurchased them and what price they buyback was four. I was at high or low slash a good or bad investment slash and intent to manipulation rather than invest. I know it was a little more complicated than this, but where do you start with that? Also, how would you Google whether the company has had a recent merger, or is that also on a 10 K as well? I imagine you are very busy and get lots of questions to come in, but I just wanting to accept a massive thank you for me, and you guys are making my isolation. Very productive. Yours sincerely column Andrew, which I like to go ahead and take a stab at that.

Andrew (01:50):

Yeah, I love it. Good question. I a lot of the questions that came in lately, first off, thanks for writing in and seconded off; they’re pretty in-depth. So I guess I would not consider this beginner level whatsoever. So if you’re a beginner, this is the first episode you’ve ever listened to, go to our back to the basic series, and get yourself educated on that first. This stuff’s complex, but it’s also very important when it comes to stocks. So let me try to answer these kinds of the line by line. So how do you check if a company has been buying back shares? So one way you could do this and the way I like to do it, I like to check whenever I’m looking at a stock, I use my favorite tool, quick fs.net just to look at the big picture of stock before getting into the [inaudible].

Andrew (02:46):

So if you go on there, you can look, and you can see the shares outstanding from year to year to year. So if I look, and if I saw in 2019, the stock had 6 million shares outstanding, and then let’s say 2020, they had 550 million, so shares outstanding, dropped by 50 million. So you know that they bought back 50 million shares when it comes to the price the buyback was for. So it’s, it’s interesting and kind of tricky, right? Because when you have stocks in the market, they ha you have buyers and sellers. And so whenever there’s a big player sometimes, they can move the market. And so there are different ways that people with a lot of money will move into stocks and try to do so without moving the market. So a great book, which isn’t so much for value investing, but it’s still, you know, related to the stock market’s very entertaining.

Andrew (03:55):

It’s this book about Jesse Livermore and in there, he, it’s called reminiscence of a stock operator. So in there, he’s talking about how he got, this was back in like the 19, the late 1920s, early 1930s. He got to a point where he built up his, his bankroll, his portfolio so high that when he would, you know, buy a stock or sell a stock, he would have to do it a certain way because if you did it all at once, it would flood the market. And so like, let’s say you’re trying to sell and you, you’re, you’re trying to sell hundreds of millions of dollars in stock on a small stock or something. And so, you know, if you put that seller there all at once, the market’s going to freak out because they see all the sell or coming in. And so when you’re moving at that kind of volume, there’s a chance that there won’t be a buyer on the other side. And so there is a chance that you don’t get the price you wanted. And, and you know, that can be very inefficient and wastes a lot of money. So when it comes to a company buying back its shares they’re there, they have the potential to, to fall into a similar issue or them, you know, they don’t want to do it all at once.

Andrew (05:23):

On the flip side, they could push the price up higher because they see a big buyer. So they kind of have to spread it out over time, and they’re not going to necessarily want to announce at what price they’re willing to pay for that. So I don’t know if that all makes sense. Warren Buffet has a similar issue where he doesn’t tell anybody what he’s bought until he’s like fully in this position because he has to because he has so much money, he has to scale into it over time. And so as far as how I understand with moving a lot of money at that large of a scale, that’s going to be an issue, and that’s why they don’t want to say exactly how much they paid. Does that make sense? Yes, it does. Okay. And so, you know, now that begs to differ.

Andrew (06:13):

You have the question of, well, if you don’t know what the price was, how do you determine the fills that go there? Bad investment. And you know, he asks an intent to manipulation rather than invest. So I mean, you’re not going to know the exact dollars and cents down to, you know, the most my new levels. But in general, you can kind of tell, okay, if they bought over these three months or however long it was you know, they paid a certain multiple and we can kind of get a general idea of, of how much they paid and they also announce it. So what I mean is they announce how much they’re, they’re buying back how much money they’re spending to buy back now. So what you have to do as an investor and if you’re trying to figure out whether that was a good use of capital or not, is it’s, it’s, it’s not that complex.

Andrew (07:10):

Basically. The way I look at it when I see a company that I own and that they’re buying back a lot of the shares, I’m not trying to say, Oh, you know, you miss allocated $2 million or something small. I’m thinking if the, if the stock is super overvalued, like if we’re talking about a price to book of like ten or something or a price to earnings of a hundred or something like that. Right. And they’re buying if they’re aggressively buying back a lot of shares, well to me I look at that as a bad investment and also possibly an attempt not, I wouldn’t use the word manipulate, but to push up the stock price. And so you as a shareholder, you have to wonder why is management trying so hard to push up the stock price? It can kind of feel like they’re just trying to maximize stock options.

Andrew (08:05):

So like that’s one extreme that I think illustrates where you can kind of make a good judgment on whether it was bad or not. When it comes to something good. I mean, you kind of flip it on the other side. And so you say, if I think the stocks in their value and then management agrees with me, so I feel good about them buying back shares for me as a big drip guy, big on dividend investing and reinvesting those dividends. I want to see good dividend payments, but I’m also happy to see a good amount of buybacks too if I think the company is still cheap. So those are kind of the two camps and somewhere in the middle is probably where you’ll fall for most of your stocks. So I think it’s a good thing to think about. But there’s not always the 100% perfect answer. You have to; you have to put, you have to sometimes cut them some Slack in a sense because you just, if, unless you’re in the industry, it’s hard to know exactly what kind of opportunities they have to reinvest the money at any given time.

Andrew (09:18):

And that’s not always going to be great; There’s not always going to be great opportunities every year. So maybe if you just give management the benefit of the Dow and you say, well, you know, maybe they’re just buying back shares because there are just no good opportunities at the moment. But you know, maybe if it becomes a trend where, where they’re, they’re doing it and not reinvesting at all, or they’re doing it, and they’re not getting any real business growth out of it, or are they doing it at such an aggressive rate that you’re not getting a good dividend yield? I think all of those things can be maybe something to cause trouble. But I think if you’re going to be analyzing them with a microscope, there’s sometimes it can be better than just give them the benefit of the Dow as long as it’s not something where you’re looking at it and saying, man, this looks wasteful.

Dave (10:15):

I would agree with that. And I think one of the things that I guess I try to do when I’m thinking about the full impact of share repurchases is One, what can the company, the company has kind of a few different options with the money that they make. One is to do share buybacks, one is dividends, and the other one is to just sit on it. And the other option is maybe to pay down some debt or to look at other opportunities to try to, to grow the company. And those are kind of, you know, the main are small little things that they could do. But when we’re talking, you know, hundreds of millions to billions of dollars, you know, the options become More magnified, I guess is the best way of putting it.

Dave (11:07):

If you’re interested in learning more about trying to determine the manipulation or lack thereof. There are a few things you can kind of look at. One is you can look at the retained earnings that are on the balance sheet and if you see that those are

Dave (11:30):

Dwindling or if they’re, you know, becoming non-existent and are still aggressively buying back shares. And you can kind of tell by looking at the balance sheet and seeing how much of their money they’re using towards trying to buy back stock. That could lead you to ask some questions as to why. And especially if they’re on debt to do those kinds of things. Those could be signs that the company is maybe trying to manipulate the price of the shares to enable them to get a bigger paycheck kind of thing. There are, you can work in the 10 K, it will, there is a section that talks about compensation for the executives and that is something that you can notate and you can kind of see a track record with that. Another place you can look at as in the cash flow statement, you can look at the cash flow statement and see what kind of options were paid out to executives in the cash flow statement.

Dave (12:33):

And if those are large and are growing as the share buybacks are continuing, that could also be an indication that they’re trying to fat in their purse as well. Especially if they’re trying to, if you see the cash flow is dwindling and they’re still aggressively buying back the sheriffs because they’re trying to boost the price of the stock, those could be questionable choices. Again, we’re not in their shoes. We don’t know what they know. We’re not in their industry. We’re on the outside looking in and trying to make judgments. But those are some things that maybe could give you some clues as to, you know, is, are they really in our business interests? Are they trying to do what’s best for us? And those are some places that you can go to kind of maybe quickly answer your question to determine what price the company paid for the stock.

Dave (13:30):

That’s like Andrew said, that’s going to be difficult because there are so many different players that are buying the stock and when it’s bought and at what price, it may be almost impossible to, to determine exactly what it is. Still, I think you can probably get a good approximation for sure.

Andrew (13:48):

Yeah. Both of those are great ways to, to kind of figure that out. The retained earnings and a cash flow statement. That’s a great place to look and get a good picture of where the money’s moving. So moving on to the next question. This one for Dave. Hey Dave. I understand how the debt to equity ratio is a good indicator there for companies during normal times, AKA no coronavirus pandemic. But I want to ask a slightly different question. How can we tell the likelihood of a company going bankrupt if all revenue were to halt for a few months? Like what is happening now with movie theaters, restaurants, cruise lines, etc. What that to equities still be a good indicator. I’m particularly looking at ticker symbols. CNK, RCL, and AMC right now. Thanks, Alex.

Dave (14:39):

Ooh, that’s a great question. All right. So here’s I guess my momentary parole thoughts. I know Andrew has some thoughts on this as well. So here’s, here’s a couple of things that I guess I tell you, the debt to equity has never going to be a bad situation to get an idea of what the company is looking at. There are a couple of things that you’re going to want to look at in our regard to just looking at the decade equity debt to equity. So for example, let’s say that we’re looking at AMC. AMC is, let’s say that they’re not going to be, you know, they’re closed right now, so they’re not making any money.

Dave (15:20):

So how do we know if the company is going to go bankrupt or not? Well, there are a couple of places that you can look to get at least a good idea of what they’re dealing with. So first of all, think about the balance sheet. When you think about the balance sheet, it’s broken up into assets, and it’s broken up at delight liabilities. So it’s also broken up into two sections in each of those. So you have current, and then you have you know, others. And so when we look at current assets and current liabilities, those are all monies that will typically be transacted within a year of whenever the transaction needs to occur. So, for example, if there are current liabilities that are on that balance sheet, those are monies that are owed to other people within the next year or so. So one way that you could kind of a determination as opposed to going through a deck to equity, a Tran transaction, or doing a calculation.

Dave (16:24):

One way you could just kind of easily determine what position in the company is in. Would it be to look at the top of the balance sheet? There are a cash and cash equivalence, and that’s money so that the cash equivalence would be short term investments like bonds or money market accounts. It would also be actual cash, so you’d look at that number, and then you would look at the current liabilities that the company has and if they can meet those with those cash and cash equivalents on hand. Then for the next year or so, even if it’s not bringing any revenue, the company should be okay. If it goes longer than that, obviously we’re going to have to have conversations, but that’s a quick and easy way that you could look and determine what kind of financial position the company is in. Now, if you see that that is actually in the negative, in other words, they don’t have enough cash or cash equivalents on hand to cover their current liabilities for the short term that they’re going to have to go outside to try to find other options, whether that’s raising money by selling bonds for the company or whether that means that they have to rely on lines of credit.

Dave (17:43):

And the reason why I bring up both of those points is there’s in the news recently bullying as well as cruise lines have gone both of those routes for their sakes to try to continue to allow them to survive during this period. Boeing has drawn down on their line of credit to have cash on hand to pay their current liabilities, which include, you know, money they owe everybody. So the same thing with carnival. They’ve done the same thing with bonds to try to mitigate any sort of trouble that they could run into with not having any revenue coming in. So that’s kind of my thought on those. I would love to hear what Andrew has to say.

Andrew (18:23):

I mean, you have it spot on. Another way they can raise cash, which carnival also recently announced very, very recently. I mean we’re talking probably, I don’t know, that time is blurring these days. Anywhere between 24 to four the hours ago, they’re diluting shares. So we just talked about buying back shares. You can also do the opposite where you sell some shares on the market. And so that’s another way that they’re raising cash and these tough times, obviously having situations like this where revenue dries up completely, we never really seen. And so if anything, it’s the best time and the most important time to be taking a deep examination at these businesses that either you own, or you’re looking at wanting to own. Because in a way, yeah, you’re not using a lot of the same metrics when you’re trying to figure out the difference between the company who looks to be in good shape versus a company that is struggling to survive.

Andrew (19:32):

And so yeah, the balance sheets are a great place for that. We’ve, they’ve laid it out nicely here. We also talked pretty in-depth about that last week as well with our episode with Brayden, another place you can look for developments that are going on. So you know, you could look, so you could have a company where they’re doing one of the things they’ve said where maybe they’re selling bonds, you know, to raise debt or maybe they’re issuing shares, they’re doing something significant, that’s going to change their liquidity situation. You’re not going to see that necessarily in the 10 K because the 10 K is released every year. And so if you look for what’s called the form eight K, and I’ve mentioned this in the past as well, it’s basically whenever management has a big announcement to make, they will send these out. And so you can read those. And those tend to be pretty short. And in there they will say, Hey, you know, we’ve fully drawn down 3 billion from our revolving line of credit. And so, you know, that’s how we’re, we’re raising cash in that situation. Something I think we haven’t seen much yet, but we could start to see.

Andrew (20:49):

Is some of these companies selling some of their assets. And so, you know, that could be a way that they, that they raise cash too. The last thing I’ll kind of add to this is the current liabilities. That’s a pretty good approximation, but understand that that number is changing from year to year. And so if they’re completely halting operations, there’s a good chance that a lot of their regular operating expenses might go away too. So I think it’s not, I’m blanking on what the term is. It’s not a panacea. If, if you look at the cash situation, then they have a bad current ratio. They have a bad ratio of cash to the total. I mean, I’m sorry to current liabilities, but it is something to be concerned about. And if you don’t see, if you don’t see Different, you know, good moves being made or if you don’t see, You know, if you see a situation where their revenue is completely drying up, and there’s no way for them to, to kind of fight out of it, then that’s probably a cause for concern.

Announcer (22:05):

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Dave (22:15):

Yeah, for sure. And I think that the point That Andrew brought up about the expenses changing, you know, that is for sure something that will well change. I mean you think about just the payroll part of it, the aspect of, of, you know, their costs of goods sold is going to change drastically because they don’t have people they’re paying. So that part of it will obviously be diminished. However, they’re still going to have other costs that they will have incurred if they’re a restaurant, they’re going to have food that they’ve either bought or I’ve had to pay for because they did have sales before everything happened. They’re still going to have to pay for that, and they’re going to have to work out, you know, arrangements with the vendors because the vendors are going to want their money too. After all, they have to pay for the foods that they bought to sell to the restaurants. So, you know, it’s, it’s a bit of a vicious, vicious chain. But I think

Dave (23:12):

When you’re analyzing these companies, you know, they do have some resources available to try to help them have smaller companies, you know, the moms and pops and stuff, that’s going to be a much bigger challenge. And that’s something to be concerned about as well because overall that will affect the overall economy wherever we are. And those people are the people out working, buying, and going to the movies. So, you know, that’s, that’s going to be something that’s going to have an impact as well. And not only to think about whether they’re going to go bankrupt but also we’ll say that you know, a few months, three, four months from now, this is all kind of in our rearview mirror. How is all this going to bounce back? We don’t know. Nobody knows. And anybody that says that they do doesn’t because there’s nobody that’s on the face of the earth has ever gone through this before.

Dave (24:00):

So this is all brand new to everybody. So I think for the prognosticators and the experts to tell you that this is absolutely what’s going to happen, they don’t know. Nobody knows. And so I think when you’re thinking about investing in some of these companies, you know, being pragmatic and having a conservative approach and thinking about what some of the upsides and downsides of these is going to, you know, hold you in good stead for a long, long time. And I think that’s something you have to keep in mind when we’re thinking about everything that’s going on right now.

Andrew (24:33):

I think you bring up a good point. If anything, this is the exact time to remember. What kind of roles did you make? Hopefully, you made rules, or you have some sort of idea of when you want it to get out when the stock was in trouble. So for me if, if the dividend is cut completely, if there are negative earnings or if there’s a substantial increase in the debt to equity ratio if I see a debt to equity ratio above 2.5, that’s concerning. So anyone of those things that I have. Years ago, I did the research, and you know, as more companies have gone bankrupt, it’s just confirmed it even more. Those are, at least with the negative earnings and that debt to equity, those are huge, big red flags that are kind of waived up there before a company goes bankrupt. So, you know, it’s an interesting time to be in because we’re watching it all play out.

Andrew (25:32):

It’s almost like watching a car crash in slow motion. But you know, we haven’t had big reports of bankruptcies yet. You know, and you wonder what’s going to happen to the market when that does happen. And you know what the timeline for that will be. And I think it’s impossible to say. I think it will be kind of different depending on the industry and the company and all those sorts of things. So you know, really take a hard look and don’t be afraid to take a loss if a company goes against a role that, that you’ve decided in the past, you know, this is, this is a situation I want to stay out of. Like for me, I don’t, why would I hold an investment if it doesn’t pay a dividend? Why am I hanging on to this investment? It’s not giving me cashflow, then that’s a reason for me to be out.

Andrew (26:21):

All good things to kind of look at. And unfortunately, there’s no perfect answer when it comes to how we, how do we know which company’s going to go bankrupt if they don’t get revenue? But you know those numbers on the balance sheet can tell you at least. Again, I feel like I’m saying the same answer for both questions, but it comes down to like you’ll have companies who are out there, the extremes, and that’s where the numbers really, really help and kind of make it blatantly obvious. And then you might have a lot of companies that are somewhere in the middle where it’s really hard to, to tell. And, and on the one hand, you don’t want to pull your hair out trying to calculate and project every little detail, but it’s good to make that calculation, so you know where your company stands on that scale. Is it they’re pretty safe? Are they like super in danger? Are they desperate? Are they somewhere in the middle where it can kind of go either way? And if that’s the case, well maybe you’re just, you’re watching for those 8-k announcements more closely than you would for a stock that you felt really good about.

Dave (27:34):

And I think the bottom line that the next two earnings seasons if you will, are going to be very enlightening. Then, you know, right now, everything is just speculation. We don’t know. We see the unemployment numbers; you see the stimulus that the governor

Dave (27:53):

Trying to pass. The did pass you see the conversations on the news, but nobody knows. And we’ve had a little bit of guidance from some of the bigger companies recently like Apple. But other than that, there hasn’t been a lot of specific news. So I think the next earning season and the one after that are going to be very, very telling and that will give you a good idea of how AMC is doing. For example, what are they, how are they, how are they, how are they reacting to what’s going on with no income and how is that affecting what’s going on with their business and how are they dealing with it? I think that will tell everything that you need to know over the next probably six months or so.

Andrew (28:42):

Yeah, it’s going to be, it’s going to be an interesting thing to watch for sure. Oh yeah. It’s, it’ll be a must-see TV and not in a good way. I mean, it’s already been must-see TV for me negatively in my portfolio. So yeah, dude. Oh, I think that’s everybody. I guess I would; I would, I would say, you know, from the way he asked the question, it sounded like he was asking as if he was trying to buy one of those companies. You know I think the conversation is a lot different when you look at it as this is a stock I’m holding, and I want to see if it survives through versus I’m looking at these stocks as opportunities. Rye would stay away with a 10-foot pole. Like there’s no reason to be buying into a stock where, you know, revenues coming up completely halt. There’s just no reason. Cause there are so many other businesses out there that are in that. I mean, there’s a huge difference between like no revenue for two months versus having to have revenue, but that’s a recession, you know, that’s a huge difference.

Dave (29:53):

Oh yeah, yeah, for sure. I mean, if you’re thinking about, you know, if you’re thinking about investing in a restaurant right now, you know, Darden industries would be tough because you know, all, they’re all have gardens, for example, they’re all closed right now. And that would be, they’re not making any money. I mean, that would be difficult. Mcdonald’s, you know, they’re still open. And in that people can go through the drive-through. I don’t; I don’t have specific numbers on how they would be doing comparatively to having their dining rooms open. But I have to imagine it’s, it has to be a hit, at least have 50 ish percent. Maybe that’s just a [inaudible] sorry, sorry. Then it’s okay.

Dave (30:35):

How many people are, you know, cooking now because you don’t want to catch the virus randomly from somebody who works at the restaurant. Yeah, exactly. I imagine a ton of people are staying at home, OES away, even if there is a drive-through. Yeah, absolutely. So, I mean there’s just there, Oh, like Andrew said, there are other businesses that you could look at that are still able to generate revenue of some way, shape or form that would be better opportunities. And I understand the thought process, you know, you’re looking at trying to be a contrarian and kind of going against what everybody is saying. But there’s also the aspect of investing with a margin of safety and the emphasis on the safety and the unknown of trying to buy into a company like AMC, for example, that has zero revenue right now. And depending on where you are in the country, that could be anywhere from a week to a month that they have not had any revenue whatsoever.

Dave (31:32):

And I’m here in Wisconsin, and we’ve been, we’ve been on quote-unquote lockdown for the last two weeks, and my fiance lives in Chicago, Illinois. They’d been on lockdown for three weeks. So AMC is at zero revenue in the Chicago area for three weeks. And so thinking about trying to buy a company that is going through that right now and it could be extended until the end of it will be extended to the end of April and possibly into may and so you’re talking about almost a full quarter with zero revenue, and that would make me nervous as somebody had to want to buy that company. I understand they think that soccer is going to take a huge hit and that when everything goes back to normal quote-unquote normal and everybody goes back to watch all their favorite movies in the theater, that the revenue will just skyrocket again. Who knows? We don’t know yet. I’m not trying to be negative Nelly here. I guess I’m just trying to be more realistic and think about what are the good and bad aspects of trying to buy into a company like that. No, it’s a very important message to share.

Andrew (32:40):

When you talk about being a value investor and trying to buy low and sell high, you’re not buying low just for the sake of buying low because it’s cheap. A lot of the time, being a contrarian doesn’t mean you’re just buying it because it’s cheap. It means you understand that there are fears, but a lot of time, those fears are very exaggerated. You know, you can have a lot of extreme pessimism or optimism for different stocks. And so a great example is like, Oh, you know, this stock was expected to grow at 10% next year. It grew at 9%, and now they’ve adjusted guidance to 8%, and then wall street freaks out, and you saw like a 10 or 15% salt. Like that’s what we’re talking about. When you say buy low, be a contrarian, not there are huge business impacts here. And so that’s why the SOC was selling off. Well, yeah, it is. And you have to understand the value of that business is going down and you’re watching it in real-time. So take that into account when you’re looking at buying cheap.

Dave (33:50):

Yeah, exactly. Those are, those are all things that you need to think about or consider when you’re looking at why a stock is getting hammered off raw financials for a moment. Banks are getting hammered right now for a couple of reasons. One, because the interest rates are so low that they are, their primary source of income is on loans, credit cards, car loans, mortgages, all those things is the interest that they are charged to lend out money. They borrow money from the government, and then they lend it out to us. So they borrow the money from the fed at two and a half percent, and then they sell it to us for 5% the bank gets to keep that to an 8%, and that’s how they make their money. So when the interest rates keep getting hammered down, down, down, then they can’t lend as much because we all know that the interest rates are so low, though.

Dave (34:48):

Why would I pay 12% for a car loan when I know that the bank is only, you know, probably getting charged a percent for that. So their interest income goes down drastically when something like that happens. And most people would probably think that they make money from all the fees that they charged us. So that’s very most banks, it’s a pittance compared to the interest income they make. And so that’s why banks are getting hammered right now. And the other aspect of that too is because people are hurting and all the, you know, 10 million people are out of jobs as of this week. That’s less money that’s getting deposited into the bank that they can again turn around and use to lend out to people like us to buy stuff. And so the lower deposits they have, the less money they have. So that’s why banks, you know, those are their two main sources of income are deposits and lending out money.

Dave (35:41):

And when those two main revenue drivers are drying up, then their revenue is going to dry up. Does it mean they’re all going to go out of business? No, but what it does mean is that they’re not as valuable as they were six weeks ago. And so that’s why they get, that’s why they’re getting hammered. And so that’s one of the aspects of understanding what industry or business that you’re trying to invest in and think about the ramifications of the economic situation that we’re all going through right now. And that’s why it’s important to think about through some of those things. Like Andrew was saying, if the company’s not making any money right now, like zero income and how are they going to pay for anything and why? And trying to buy into a company like that would be very, very risky at this point.

Andrew (36:28):

Yeah, 100%. I mean, the selloff has been pretty extreme, and so I see a ton of value out there. Don’t get me wrong. It’s, it’s pretty exciting and picked up on stocks that I’ve wanted to pick up on for a long time. And so you just have to gauge like what is the business impact? How diversified is, is the, that businesses income streams and revenue streams. And so you know, if they’re, they’re all going to kind of get a little bit slower, but there’s a lot of, there’s a lot of opportunities and there’s also a lot of value traps out there. And so you have to be careful. You have to know what you’re doing. I think there’s, what was that quote you said? Something we like said something about all the money’s made now. Oh Vitaly said that he said that he read somewhere the value investors, this is where they make their money, but you know, you’re not going to make it just because you’re blindly buying into cheap stocks that are going to have issues. It’s because you understand that because the whole market is selling off. Then there’s fear everywhere. That’s going to leave a lot of pockets of opportunity if you get in at the right times and try to figure out which situations will be more like my example, as I said, where you know, we’re talking about a couple of percentage points, less of growth, but we still see growth versus a catastrophic drying up of revenue. Figure out which one that situation is and then feel confident about buying into the stock where things will be fine in the long run.

Dave (38:10):

All right, folks, well, that is going to wrap up our discussion for this evening. I wanted to thank you, everybody, for sending in those questions. Those are fantastic. Those are great questions, and you guys are getting better and better at them, so please keep sending them to us. We love helping you guys and help you learn as much as you can about the sock bar, especially in this crazy time and Hey we, most of us have not a lot to do so this is a great learning experience as well, so go out there and invest with a margin of safety. Emphasis On the safety. You guys have a great weekend. We’ll talk to you all next week.

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