In this episode of the “Investing for Beginners” podcast, Dave and Andrew tackle four insightful listener questions, including how to select a financial planner and the importance of debt-to-equity ratios. Tune in for practical advice and expert insights on navigating the world of investing.

00:00 – 00:32: Introduction

• Dave welcomes listeners to the “Investing for Beginners” podcast and introduces the episode’s focus on answering four listener questions.

00:32 – 02:00: Question 1: Selecting a Financial Planner

• Dave and Andrew discuss how to choose a financial planner, including what questions to ask and considerations like fees and investing philosophy.

02:00 – 04:16: Where to Find Financial Planners

• Suggestions on where to locate financial planners, such as banks, brokerages, and independent services like Tangerine.

04:16 – 06:38: When to Consider a Financial Planner

• The hosts talk about the stages in life when a financial planner might be most beneficial, particularly as you approach retirement.

06:38 – 08:10: James Canola’s Financial Planning Services

• A brief mention of financial planner James Canola and the value of his services.

08:10 – 09:30: Introduction to Spotify Q&A Feature

• Dave explains how listeners can submit questions via Spotify’s app, which will be answered in future episodes.

09:30 – 13:20: Question 2: Debt-to-Equity Ratio

• Andrew explains the debt-to-equity ratio, its importance, and how to interpret it, particularly when it’s above or below 1.

13:20 – 17:30: Why Debt-to-Equity Ratio Matters

• Discussion on how debt can impact a company’s growth and profitability, and what to look for when analyzing this ratio.

17:30 – 20:30: Using Debt-to-Equity in Context

• Tips on how to analyze the debt-to-equity ratio over time and compare it with competitors to gain better insights.

20:30 – 25:00: Additional Financial Ratios to Consider

• Andrew and Dave suggest other ratios like net debt to EBITDA and interest coverage ratio to complement the debt-to-equity analysis.

25:00 – 29:00: Question 3: Investing in Watsco

• A listener question about investing in Watsco despite its recent price drop is discussed, with advice on evaluating whether it’s a short-term issue or a long-term problem.

29:00 – 32:10: Understanding Market Sentiment and Stock Prices

• The hosts talk about how market sentiment can sometimes disconnect from a company’s fundamentals, using Lululemon as an example.

32:10 – 36:00: Reanalyzing Your Portfolio

• Andrew shares the importance of regularly reanalyzing stocks in your portfolio to ensure they still meet your investment criteria.

36:00 – 38:30: Separating Noise from Facts

• Dave emphasizes the need to focus on a company’s actual performance rather than being swayed by market noise or social media chatter.

38:30 – 42:01: Conclusion

• Final thoughts on the importance of having a flexible mindset in investing and avoiding biases. Dave and Andrew wrap up the episode with a reminder to invest with a margin of safety.

Today’s show is sponsored by:

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You can find the transcript of today’s show below: