Expanding Your Circle of Competence by Investing in Cloud Stocks
Pre-2020, cloud stocks were never anything that I really even looked at investing in. The numbers just absolutely never made any sense to me but we have just seen some massive returns in 2020 and it’s made me think – is now the time to invest in cloud stocks? Like I mentioned, the math just […]
IFB168: An Asset Allocation Guide for Lifetime Wealth
Announcer (00:02): I love this podcast because it crushes your dreams of getting rich quick. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. To provide step-by-step premium investing guidance for beginners. Your path to financial freedom starts now. […]
Required Rate of Return: A Guide to Determine Discount Rate for a DCF
Great investors from Warren Buffett, Charlie Munger, Mohnish Pabrai, and Peter Lynch all have different required rates of return they demand before investing. Using these rates helps them generate the great returns they have made over their investing careers. The debate concernings the required rate of return is a subject discussed at all levels of […]
IFB165: VIX, Roths, ETF Allocations
Announcer (00:02): I love this podcast because it crushes your dreams of getting rich quick. They actually got me into reading stats for anything. You’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. With step-by-step premium investing guidance for beginners. Your path to financial freedom starts now Dave […]
Average Discount Rate for the Top Companies in the S&P 500
Setting a reasonable discount rate is critical to getting a reasonable valuation. Like with history, I believe that getting context on averages, in this case the average discount rate, throughout a large portion of the stock market will help you figure out if your chosen discount rate is reasonable or not. A discount rate is […]
GAAP Accounting Rules: The 4 Basic Principles Investors Should Know
Most think of Accounting as this dry profession we only need to consider around tax time, but as an investor, understanding how accounting works on a basic level remains important if you want to analyze businesses on any level. GAAP accounting rules remain the primary force behind financial accounting, and today we will learn more […]
4 Tips to Strengthen Your Risk Appetite for Investing in the Stock Market
Have you ever heard that the stock market is risky and that you’re going to lose all of your money? I know that I have heard that a billion times and friends, I am here to tell you that it’s just not true. As long as you know your risk appetite and you stick to […]
IFB163: Dividends, Diversification, and Reflections on the Approach
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 (00:36): All right, […]
Global Equities Momentum (40y Track Record Outperforming the S&P 500)
Updated 10/12/2023 Did you get tired reading that title? If so, I’m sorry – but I wanted you to know that this entire article is showing you how Global Equities Momentum (GEM) has absolutely dominated the S&P 500 over a 40-year period. I’ve been reading the book Dual Momentum Investing by Gary Antonacci. I’m finally […]
CAPM Assumptions, and its Practical Application to DCFs
The CAPM (Capital Asset Pricing Model) is commonly used to estimate a discount rate for cash flows in a DCF calculation (in particular, the cost of equity). This post will highlight a few of the CAPM assumptions that led to the creation of theory. What’s the CAPM trying to do? Basically, taking the conclusions from […]
