Common Sizing, Time Series and Cross-Sectional Analysis – CFA Level 1
Common sizing, time series, and cross-sectional analysis are fundamental tools for every investor’s toolbox. Both common sizing and time series analysis will help investors understand a business better in terms of profitability, asset and capital needs, as well as spot business trends. Such data can then be used to compare a company to industry competitors […]
Residual Income Valuation Method – CFA Level 2
Valuing a company using the residual income method is an interesting technique not many retail investors are aware of which is covered in CFA Level 2. Value investors will enjoy the residual income method because of its starting point at book value before going on to add the present value of expected residual income. This […]
Which is Better – Active vs. Passive Income
If you could only choose one, would you choose active or passive income? I mean, they’re both good because you’re making money, but I’m here to preview this incredible battle of Active vs. Passive Income! The last time that I did a heavyweight matchup like this I was comparing short vs. long-term investing and boy, […]
IFB178: How To Trade Vaccine Volatility
After huge swings gripped the stock market on the announcement of the effectiveness of Pfizer’s vaccine, investors saw certain stocks soar while other stocks (like those with the WFH theme) popped like a defused balloon. In this episode, Dave and Andrew discuss the mindset needed to invest during a time of great market volatility. A […]
This 401k Match Calculator Shows How Powerful Compound Interest Can Be
There’s various compound interest calculators out there, but not many specific 401k match calculators that are easily manipulable to show how different contributions and employers matches can compound. We present an Excel version, or you can simply place your own inputs on the page (scroll to the bottom)! Earlier this week, I made a Compound […]
Investing in a Duopoly Market – Value Play or Value Trap?
If you’re looking for a dominant company with a very strong competitive advantage, it might be easy to name a few different companies out loud, but another way to identify these different companies is to find those that are part of a duopoly market. If you do not know, a duopoly market is one where […]
IFB176: 3 Things to Learn From Shark Tank About Investing
Announcer (00:02): I love this podcast because it crushes your dreams and 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. A step-by-step premium investing guide for beginners, your path to financial freedom starts now. Dave […]
How Tactical Asset Allocation Works – (With Example Portfolios)
Asset allocation is arguably more important than which stocks you pick. For most investors, focusing on your asset allocation is a lot more important than choosing between Microsoft and Facebook. Asset allocation is a key area to focus on and get right, and it is an area where many investors hinder their returns. There are […]
IFB175: Too Much Money For a Roth, Selling Tesla and Netflix
Announcer (00:02): I love this podcast because it crushes your dreams and getting rich quick. They got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern. A step-by-step premium investing guide for beginners. Your path to financial freedom starts now. Dave (00:32): […]
How to: Excess Return Model for Valuing Financial Stocks
Valuing banks, insurance companies, and investment banks are among the more difficult challenges in valuing any business. Most investors opt for relative valuations that use multiples to compare value from one to company to another in large part. There is nothing inherently wrong with this strategy, but sometimes comparing multiples leads to overvaluation; if the […]
