Financial Statement Footnotes: Treasure Trove of Information from the 10-k
Updated 5/1/2024 Reading a company’s 10k is required if you want to invest in it, and part of that reading is scouring the financial statement footnotes. In fact, many seasoned investors read through the financial statement footnotes first to assess the company’s financial condition. On many occasions, the financial statement footnotes contain some of the […]
IFB167: Is It Time To Buy Growth Stocks?
Announcer (00:02): I love this podcast because it crushes your dreams of 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. To give you Step-by-step premium investing guidance for beginners. Your path to financial freedom starts […]
Are you Market Timing? If so, I Bet You’re Losing Money…
Updated 4/17/2024 Have you ever been a victim of market timing and inevitably lost a lot of your money? So many new investors fall victim to market timing over and over again, so the real question is—how can I avoid the trap of market timing? Let me help out with some concrete tips! Click to […]
7 Insightful Keynes Quotes about Economics and the Stock Market
John Maynard Keynes was a British economist who really changed the thought process on macroeconomics over time, and as you might expect with any great mind, there are always going to be some great quotes to live by, so let’s checkout these 7 insightful Keynes Quotes! But first – who is John Maynard Keynes? Keynes […]
Buffett’s 3 Categories of the Return on Invested Capital Formula
Updated 5/1/2024 “Leaving the question of price aside, the best business to own is one that can employ large amounts of incremental capital over an extended period at very high rates of return.” Warren Buffett, 1992 Berkshire Hathaway Shareholder Letter Return on Invested Capital is a metric I have been thinking about lately. The list […]
Why is Cash Flow Important? It’s Not What You Think!
As I am writing this article, it’s the middle of August 2020 and COVID is in full force in the US. The question of ‘why is cash flow important?’ might seem pretty obvious, but I am here to tell you that it’s not as obvious as you might think! The obvious answer is because cash […]
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 […]
Basic Cash Flow Statement Breakdown (by Each Component)
Updated 5/1/2024 Cash is king, and finding companies that generate cash from their activities is the holy grail of investing. The basic cash flow statement provides answers to the question: Does this company generate free cash flow? Today, we will dive into the basic cash flow statement in our ongoing series of learning basic accounting […]
IFB165: VIX, Roths, ETF Allocations
Announcer (00:02): I love this podcast because it crushes your dreams of 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. With step-by-step premium investing guidance for beginners. Your path to financial freedom starts now Dave […]
How to Calculate NOPLAT for Operating ROIC
Both NOPLAT and ROIC can be easily misinterpreted and misused in its applications to understanding a business. NOPLAT gets especially mishandled due to its more well known cousin, NOPAT. Most of the time these are interchangeable, but when they’re not, it can really lead to a distortion in calculating ROIC. What is NOPLAT? NOPLAT stands […]
