What is a Company’s Optimal Capital Structure and What Influences It?
Updated 11/9/2023 “The first question is, is when you have capital, is it better to keep it or return it to shareholders? It’s better to return it to shareholders when you cannot create more than a dollar of value with that capital. That’s test number one. And if you pass that threshold, that you think […]
IFB212: Investing in “Safer” Investments, Picking ETFs and Individual Stocks, and Bond ETFs
Welcome to the Investing for Beginners podcast. In today’s show, we discuss: *How to find investments that pay 3-5% returns or safer returns that lower the volatility *How to think about investing in ETFs and picking different stocks that might be in the ETF *How to think about investing in Dividend Aristocrats and others that […]
Asset Management Stocks: Business Overview and Changing Trends
Trillions of dollars move around in markets, and many of these flow through large asset management companies. To understand these stocks, and invest in them, requires understanding the basics of the industry and how asset management has undergone major changes lately. One of the most obvious developments has been the move from active to passive […]
Why Some Growth Stocks Are Crashing Now
Welcome to the Investing for Beginners podcast. In today’s show, we discuss: *Exploring some of the recent news about some companies dropping prices dramatically, such as Zillow and Peloton *Possible signs that the market might be turning, evidenced by the wild swings we see in the markets. *Some of the math around what kinds of […]
8 Major Stock Market Factor ETFs and Their Differences
Updated – 11/3/23 A factor in the stock market is a set of characteristics, or style, of a group of stocks. Factor ETFs allow investors exposure to different stock market styles. At any time, some stock market factors will outperform, while others underperform. Buying factor ETFs can be a great tool in managing a portfolio. […]
Making the Discount Rate Formula Simple – Explain it Like I’m a 7th Grader
To me, one of the hardest parts of understanding a DCF valuation was the discount rate. It didn’t help that the formula was complex. I’d like to make the discount rate simple, using simple words. Maybe if you can understand the basic concept of the discount rate, it will help with calculating one for yourself, […]
IFB209: Investing the Fantasy Football Pot, Thoughts on Stock Advisor Services
Welcome to the Investing for Beginners podcast. In today’s show, we discuss: *How to save money over a short period of time with zero volatility *How taxes work for a brokerage account, and other styles of brokerage accounts such as a solo 401k *Things to consider when looking to invest in real estate *Deciding what […]
Margin of Safety: Secrets from the MOST Profitable Investors of All-Time
Updated 6/7/2023 “Most of the top-ranked business schools worldwide do not understand the margin of safety. For them, low risk and low returns go together, as do high risk and high returns. Over a lifetime, we all encounter scores of low-risk, high-return bets. They exist in all facets of life. Business schools should be educating their […]
“There is Always a Bull Market Somewhere.” Or is there?
Brand new investors might look at a rising stock market and all-time highs as a potential indicator that stocks are expensive. However, new investors should consider the quote I heard from the popular Jim Cramer when I first started investing—that “there is always a bull market somewhere”. If there’s always a bull market somewhere, then […]
How 13F Filings Can Help Investors Evaluate Insurance Stocks
How do insurance companies make money? We all think the monthly premiums we pay lead to how most insurance companies make money. Insurance companies make money on their investment portfolios, and the big question remains, how do we measure performance to determine a company worth our investment? Everyone knows of Warren Buffett and his legendary […]
