Learn the stock market in 7 easy steps. Get spreadsheets & eBook with your free subscription!

HEY! DID YOU KNOW…

 

  • The median age in the U.S. is 36.8
  • The median income in the U.S. is $51,939
  • The average 401k match is $1 for $1 up to 6%

A 36.8 year old investing 10% of their $51,939 income with a $3,116.34 match:
With just average stock market returns of 10% would have $1,114,479.31 by retirement.

Join 10,300+ other readers who have learned how anyone, even beginners, can easily make this desire a reality. Download the free ebook: 7 Steps to Understanding the Stock Market.

IFB41: What I’ve Learned from My Biggest Stock Losers Up to This Point

 

stock losers

Welcome to Investing for Beginners podcast, I’m Dave Ahern, and Andrew Sather is here with us as well. Welcome to episode 41, tonight we’re going to talk to Brad Conway who’s coming all the way from merry old England. Brad is a newer investor, and he’s got some great questions for us tonight.

So without any further ado, I’m going to hand it over to Andrew and Brad. A special note I had some audio difficulties with my speaking tonight, my computer was not working so I had to use my phone. So the audio quality for me will not be so great, so I apologize for that in advance, thank you for your patience, and I hope you guys enjoy the show.

  • How trailing stops and the best ways to utilize them
  • Lessons we learned from our stock losers
  • Margin of safety, emphasis on safety
  • Debt to equity, price to book and other important metrics

 

Brad: excellent yeah, thanks, Dave. So the first question and I want to ask is around stopgaps and there are you know listen to all the podcasts and you talk about I believe you said it’s 25% less of the value that you bought it out of stock and we’re on though is when that gets triggered and are you instantly just selling or do you do little bit of digging around what’s the reasons behind that?

Andrew: so this is very personal depending on how people want to utilize trailing stops I’ve talked on the podcast in the past about how I split my portfolio into two.

So I have the part of the portfolio that’s strict with trailing stops and then the part that is more of like what you’re talking about where if something goes wrong I’m going to dig into a deeper look to see if the stock price that’s fallen is really because of bad fundamentals, bad company financials, or if it’s just because the crowds kind of lost their mind.

[click to continue…]

IFB40: Top 7 Money Tips from The Richest Man in Babylon Audio Book

the richest man in babylon audio

Welcome to Investing for Beginners podcast, this is episode 40 in which Andrew and I are going to talk about “The Richest Man in Babylon” a book that was written by George S. Clasen.  This was written back at, but we even know the 30s is that correct?

  • Learn to save money
  • Put your money to work for you
  • Find a way to increase your income, either from a side job or a raise at work
  • Use compounding to your advantage

Andrew: yeah man I don’t have a clue, hopefully, glean something out of it.

Dave: okay fair enough, so we’re not exactly sure when the book was written without having it in front of us. Yeah but it’s one of the easiest books to read, and it is amazingly insightful, and it has a lot of great advice about personal finance.

And it was one of the first books I read when I started digging into investing in kind of personal finance. And again the name of the book was The Richest Man in Babylon, and we’re going to talk about the seven cures for fattening the purse.

So he has seven different cures that Andrew and I are going to go through and talk a little bit about so I’m going to have Andrew go ahead and start us off with number one.

Andrew: Yeah, I mean I think everybody out there who wants to complain about finances. If sees himself in as a tough situation and wants to crawl out of it should read this book and listen to this episode over and over again. [click to continue…]

IFB39: Simple Tax Shelter: Tax Saving Instruments for Your Investments

tax savings instruments

Welcome to Investing for Beginners podcast, this is episode 39. Andrew and I are going to respond to an email that Andrew got asking us some questions. So today we’re going to talk a little bit about some of his questions, go in-depth and answer those for him.

So without any further ado, I’m going to turn it over Andrew, and he’s going to take us through some of the questions.

  • How trading fees can affect your investments
  • How IRAs work
  • The differences between a Roth and a Traditional
  • The benefits of a 401k
  • Some pros and cons of Robinhood

Andrew: thanks, Dave, okay this is from Kurt.  Kirk says

“Hi Andrew, I recently less than two weeks ago came across your podcast and found it so useful and informative. Then I went back to the beginning and then in the process of binge listening to my way through the list of 30 some episodes.”

Andrew: which by the way I say that I highly recommend doing that I remember when I first started listening to podcasts I went through archives of the ones I liked and that’s a great way to you know get knowledge and get acclimated with what’s going on with these topics of these podcasts. so continuing to read on with the email

“before discovering the Investing for Beginners podcast I loaded RobinHood on my phone and began thinking about which stock or fund to purchase. I’m glad I found you when I did, I still don’t have a clue which will be my first purchase, but I now understand that my original selection would have been based on greed for something that is likely overpriced or has other indicators of a poor investment.”

Andrew: sidebar again, that’s very insightful and good job there Kurt at recognizing that and potentially you know you probably saved yourself thousands of dollars in losses and pain by stumbling onto this resource and really taking it to heart and picking it up really quickly, so that’s great back to the email Kurt says so [click to continue…]

IFB38: Financial Reporting and Press Releases Interview with Maj Soueidan

 

financial reports

Welcome to Investing for Beginners podcast, this is episode 38. I’m Dave Ahern, and we have Andrew Sather here with us tonight. Tonight we’re going to have some, the fun we have a special guest with us tonight. So we’re going to be interviewing Maj and Maj is from Geo Investing.

 

  • The differences between minor caps and small caps
  • Defining information arbitrage
  • The advantages of reading press releases
  • How to confirm management statements
  • The importance of footnotes in financial statements, especially subsequent events

 

 

that’s the name of his company, and he’s a very very interesting guy, and this is going to be a lot of fun so without any further ado, Maj would you take a moment and tell everybody about you and kind o fwhat you do and who you are where you from and all that kind of fun stuff.

Maj: excellent yeah well thanks guys for having me here. This is an opportunity; I love talking to other investors and learning new things and every day and hopefully be a little bit today from each other.

So you know Geo Investing was launched in 2007 when our tenth year anniversary geoinvesting.com and you know it’s you know it’s a site that we brought I co-founded with my partner Dan and you know we launched it with the intent to help educate investors about the advantages of investing and smaller capitalized companies. Small caps, minor caps you know and it to help understand how they can get an investing advantage doing that.

And you know in the increasingly competitive environment and you know we’ve been doing that and we it’s been an awesome ride, and we bring our products to our members through morning emails, through model portfolios, through a lot of proprietary research. And you know and our we call our investing call to actions which are what we’re buying and selling.

[click to continue…]

IFB37: 5 Practical Peter Lynch Quotes for the Aspiring Beginner

peter lynch quotes

Welcome to Investing for Beginners podcast, this is episode 37. I’m Dave Ahern, and Andrew Sather is here as well. Tonight we’re going to talk about Peter Lynch quotes. This is one of Andrews’s absolute favorite investors.

He read his book quite a while ago called Beating the Street and One Up on Wall Street, and he loved them, and so we thought maybe we would chat a little bit about quotes that Peter Lynch has.

  • Find businesses that sell to other businesses or B2B
  • Know what you’re buying and why you’re buying it
  • All the math you need to invest you learn in fourth grade
  • Investment ideas can come from anywhere

And talked a little bit about his investing philosophy and his ideas and saw how they could help you with your investing. So without any further ado, I’m going to have Andrew go ahead and take us away.

Andrew: just as a disclaimer, I haven’t read One Up on Wall Street yet, that’s on my to-do list. Oh, guess I’m missing out right but Beating the Street was the first investing book I ever read.

It’s super easy to read like I just couldn’t put down the book and I mean I guess I could say the same thing about the Intelligent Investor.  But I’m aware that the Intelligent Investor is a lot harder to get through, it’s a lot drier but Beating the Street, he writes in very conversational tone.

[click to continue…]