fundamentals<\/a>, dollar-cost averaging, diversification, long-term holding periods, and buying stocks at a discount to intrinsic value. If any of those concepts or as a whole just seem too overwhelming then maybe you would be better off just investing in an ETF.<\/p>\nI think as a young person there is so much opportunity, and it depends on how much you want to dig into the nitty gritty, but obviously, I believe in, it because I am living it. And I believe there is plenty of opportunities and at 18, that extra almost decade of compounding interest that really can accumulate is even further substantial than anything I could accumulate. Maybe just try to remember me one time you want to pick me up on your private jet.<\/p>\n
Moving on to the last set of questions. These are a set of questions from a mutual reader of Andrew and me’s blogs, and he asked some great questions. What we are going to do is talk a little bit about Andrew’s service. I am a huge fan of Andrew’s work, and I think it’s a very helpful tool. I know that Andre obviously uses his tool and I find it very useful. We thought we would go over these questions on the air because they kind of hit some of the things that we talk about and I thought they would be beneficial to others.<\/p>\n
I have been receiving your emails and have heard a couple of the podcasts you are doing with Dave Ahern. For context, I am a retiree age 62. Having lost a job in a “disrupted” industry a couple of years ago. I have taken over management of my retirement funds, and I am looking to “actively” invest about half of them. I would like to generate about 8 to 12% a year utilizing a variety of strategies. I have been reading Ben Reynolds newsletter, and on the stock, the side has gone over to mainly dividend stocks for the reasons you have discussed in your podcasts.<\/p>\n
Is your spreadsheet evergreen? I.e., not likely to change or be updated since it relies on common business metrics. <\/strong><\/p>\nAndrew:<\/strong> Yes, it is evergreen. There is a general overview of things that are going to be consistent. Things like assets, debt,cash, revenue, earnings, that is always going to be a fundamental part of business metrics. That is always going to really be the core foundation of the spreadsheet. I have updated it in the past, and I will most likely update it in the future. There is always little discrepancies and little intricacies behind the numbers and it can evolve.<\/p>\nI mean Warren Buffett evolved his approach from a very cigar-butt method to something more of buying a wonderful business at a fair price instead of a fair business at a wonderful price. Those things can evolve, and sometimes little situations need to be accounted for like one of the things I saw the other day was a negative cash at the end of the year. I have been researching companies spanning all the way back to the 1930s.<\/p>\n
Would I gain experience in evaluating company fundamentals as disclosed in reporting? <\/strong><\/p>\nAndrew:<\/strong> Yes, a 100%. You learn by doing, and they say when it comes to learning there is a study that has a percentage that states. There is a percentage of how much information is retained by the human brain. It maybe something above 50%, if your teaching and its something less than that and if you are doing and watching it on video it’s less, listening to it on audio is less and then reading it is even less. I think a big way I am personally able to find mastery from plugging numbers in myself and starting to see that how it all fits together. And once you do a few of these you start to see that this business is pretty bad compared to this group of businesses over there. Why are people putting money into this terrible business? And you start to see the world of the stock market differently. I don’t think you gain that type of mastery unless you are doing it yourself.<\/p>\nCould any stock\/company be assessed with this spreadsheet? Would it work with MLPs and REITs? <\/strong><\/p>\nAndrew:<\/strong> Yes, any stock or company that files a 10-k with the SEC. Technically you can do it with international stocks as well as long as they\u2019re providing the same financial metrics that companies here in the States are. And that’s main revenue, earnings, dividends, and things like liabilities, assets, shareholder’s equity and then cash at the end of the year. As long as you have that information you can use the spreadsheet to analyze your heart away.<\/p>\nIf there were ever an update of the spreadsheet, would there be a charge for that? <\/strong><\/p>\nAndrew:<\/strong> No.<\/p>\nIs it possible for company data to be imported in an automated fashion? I would expect it to be manual, find the information on the annual and plug it in<\/strong>.<\/p>\nAndrew<\/strong>: Yeah, I don’t have an automated feature as of now. It’s all manual.<\/p>\nIs the entire portfolio to date available upon subscription, including closed positions. <\/strong><\/p>\nAndrew:<\/strong> Yes, he is talking about the eLetter portfolio and yes, you, get a complete archive of the back issues of every issue. It’s been two and half years know and the monthly issues that have been sent out. So you can see which stocks were bought when they were bought, and which ones were sold.<\/p>\n","protected":false},"excerpt":{"rendered":" Welcome to session 19 of the Investing for Beginners podcast. In today’s session, we are going to have a little different format than we have been doing. We are going to answer some of our reader’s questions on air. Andrew and I are going to take turns answering these questions, and this should be […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[5971,1178],"tags":[588,355,518,180,90,5600],"yst_prominent_words":[2390,1274,1257,5595,1199,5593,1180,1262,1606,1605,1288,5168,5592,5598,5594,5596,1179,5599,5591,5597],"_links":{"self":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/6229"}],"collection":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/comments?post=6229"}],"version-history":[{"count":1,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/6229\/revisions"}],"predecessor-version":[{"id":21363,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/posts\/6229\/revisions\/21363"}],"wp:attachment":[{"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/media?parent=6229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/categories?post=6229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/tags?post=6229"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/einvestingforbeginners.com\/wp-json\/wp\/v2\/yst_prominent_words?post=6229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}