Other Comprehensive Income, OCI, AOCI: The Basics, with 10-K Examples
Edited for clarity: 9/21/22 As a company creates income, this changes its shareholder’s equity. Add investment securities and it can get hairy. The Statement of Comprehensive Income attempts to capture the effect of unrealized gains on investment securities. It reports these changes to shareholder’s equity through the balance sheet, through OCI and AOCI. OCI stands […]
Corporate Restructuring Basics: How Taxes and Politics Play a HUGE Role
History provides a valuable guide and lessons to finance, and the history of corporate restructuring is no exception. In particular, the Merger mania in the 1980’s provides a prime example of what can happen on Wall Street as companies struggle to survive and thrive in an ever-changing environment. While textbooks can provide fantastic explanations about […]
Valuation Basics: Market vs Book Value – and The Argument for Both
When performing a DCF valuation, you must make a distinction between using market vs book value for debt. It is a critical part of calculating the weighted average cost of capital (WACC). The easy way, of course, is to just use book value of debt from the company’s balance sheet and be done with it. […]
IFB151: Economy Basics Pt3 – Government Debt, Fiscal, and Trade Deficits
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. New Speaker (00:36): Welcome […]
IFB150: Economy Basics Pt2 – Inflation, Deflation, and Currency
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, […]
IFB149: Economy Basics Pt1 – What Will Covid Affect
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 (00:41): All right […]
The Requirements and Steps to Using a Mega Backdoor Roth IRA
Chances are, you might be familiar with the term ‘Backdoor Roth IRA’, but what if I told you that there was a MEGA Backdoor Roth IRA? WOAH! Doesn’t that sound just so much better? I’m having flashbacks to middle school where everything I described started with mega, super, enormous, or another adjective where you were […]
IFB92: A Refresher Episode on Some Investing Basics
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 and Dave, too 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, well […]
Analyzing Greenblatt’s Magic Formula Strategy without Backtesting
It seems that every argument supporting Joel Greenblatt’s magic formula examines some flavor of a backtest to prove its effectiveness. The problem with backtests is that the results don’t tell the complete picture. Backtests are fundamentally flawed, so we should find other ways to validate or disprove the magic formula strategy. Backtests are dangerous indicators […]
Jean-Marie Eveillard’s Investment Strategy and Roller Coaster Performance
Jean-Marie Eveillard was Morningstar’s International Stock Fund Manager of the Year in 2001. He grew Assets Under Management (AUM) to $100 billion with his flagship First Eagle Global Fund. His track record as a money manager has been incredible. But it hasn’t always been easy for Eveillard. In fact, after beating the market for 18 […]
