Q&A: Selling During Volatility and Visualizing Net Working Capital

In this episode of the Investing for Beginners podcast, hosts Andrew and Dave tackle four intriguing listener questions gathered from various sources. They begin by discussing the merits and timing of selling stocks during a downturn and the potential pitfalls of making multiple trading decisions simultaneously.

They then delve into the intricacies of the Discounted Cash Flow (DCF) model, explaining its relevance with or without inflation. The conversation transitions to net working capital, exploring its importance in cash flow statements versus balance sheet metrics. Finally, they address concerns about high-level executives or board members selling large amounts of stock, providing insights on when this might be a red flag for investors.

00:00 Introduction and Listener Questions Overview

00:33 Is Now a Bad Time to Sell Stocks?

06:52 The Importance of Staying Invested During Market Volatility

10:37 Understanding Discounted Cash Flows (DCF)

18:00 Calculating Free Cash Flow and Working Capital

30:58 Insider Stock Sales: Red Flags or Not?

34:06 Conclusion and How to Submit Questions

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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