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 117 we’re going to continue down the train. You’ll get the pun here in just a minute, a train tracks of answering some listener questions. We get another great one the other day and Andrew, and I wanted to go ahead and take a stab at answering this, so I’m going to go ahead and read the question. Andrew and I will do a little back and forth, so it says, Hello Andrew. I pray that your week is going well. I recently subscribed to your real-money portfolio and learning a lot. I’ve been listening to your podcast for some time now and appreciate you and Dave’s insights. A few months ag,o I ran a screen and found GBX that had some great appeal. I haven’t purchased your VTI but have something that I’ve been using to assess intrinsic value using Morningstar and guru focus information. Question with the market cap being around 750 million and the sales being 2.8 1 billion, how does that fit into your preferred metrics for screening? I liked the other numbers a lot, and I’m just wondering could this be a value trap just because it is a smaller company. Thank you for your time. Again. Thank you for sharing what you weren’t in an understandable way, Kevin. All right, Andrew takes a stab at and talk about what we were talking about before we came on the air.
Andrew: 01:51 Okay. Yeah. So my idea for this, obviously I’m going to answer the question eventually, and you’re going to have to remind me. But I think, so w we were looking at this. This is a stock I have; I haven’t looked at before. I don’t believe you looked at it before either. So we were in the pre-show going in and going through our approach on, you know, checking out stock like this. And I was thinking, well this is pretty useful. Why don’t we do the same thing but share it with the audience? So I have a lot of things that pop into my mind when I look at a stock like this. I’ll probably go on tangents to my tangents in this episode. So bear with me. I think when you look at any stock, you’re going to have a lot of different thoughts that pop in your head and it’s useful to try maybe to distinguish between how are these thoughts going to help me decide on whether I want to buy this stock or not.
Andrew: 02:54 I’m not going to pick, you know, and say that somebody should buy this or not. I think maybe that’s something the listeners I’ve gotten to use too. Now. The other thing. I want to make some other disclaimers I guess before even starting and then maybe we can dive in for some of the thoughts that pop into our head and take a stab at some of that. I would say, Oh, I hope this episode doesn’t get discouraging because it’s when you look at stocks, you can get into the weeds. You can jump down the rabbit hole, and you can do all the things we try to talk about. This is a show for beginners, so a lot of the things that we try to emphasize does not overanalyze, you know, do not try them, find everything out about +stock and do not be sitting on your hands and not buying stocks in general.[continue reading…]