Aug 16, 2022
Why Does the Stock Market Go Up? w/ Brian Feroldi
- BRT S03 EP38 (137) 8-14-2022
Things We Learned This Week
- Why Does the Stock Market Go Up? – Everything You Should Have Been Taught About Investing In School, But Weren't
- Motley Fool – writing about investing and stocks, made Brian a better investor
- Modern Tech – easy to buy and sell stocks on trading platforms, people just look at a stock as a ticker, when really it’s a Business
- Corporation – owned by shareholders, where a stock is a piece of ownership % of what’s owned), the corporation’s stock is publically owned after the IPO
- Stock Market – place where investors & business owners meet, could be in person or online, like Farmer’s Market – producers of food sell to consumers
Guest: Brian Feroldi
Book:
Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren't, Paperback – April 5, 2022 by Brian Feroldi
Motley Fool Articles: https://www.fool.com/author/14471/
http://mindset.brianferoldi.com/
YouTube - https://www.youtube.com/channel/UCs60_Z83HU76uygzHRQl0kA
Twitter: https://twitter.com/BrianFeroldi
Website: https://www.brianferoldi.com/
Brian Feroldi is a financial educator, YouTuber, & author. He has been intensely interested in money, personal finance, and investing ever since he graduated from college. Brian started investing in 2004. In the beginning, he had no idea what he was doing and got his teeth kicked in. His returns improved dramatically over time as his experience and knowledge about the stock market grew. Brian’s career mission statement is “to spread financial wellness.” He loves to help other people do better with their money, especially their investments. He has written more than 3,000 articles on stocks, investing, and personal finance for the Motley Fool. In 2022, Brian’s book Why Does The Stock Market Go Up? was published. The mission of the book is “to demystify the stock market.” It was written to explain how the stock market works in plain English. Brian lives in New England with his wife and three kids.
Notes:
Book –
Stock Market Basics
Going Public – IPO
* Valuing a busness
Why the market moves up and down
Stock market crashes and recovery
Why earnings go up
All about compounding
Getting started
All about Financial Advisors
Avoiding big mistakes – bad economy, timing market, diversification, dollar cost avering
Common Q’s answered
Advice to younger self –
Patience – the edge
Penny stocks – no
Invest, not trade
Get started now
Saving
Payoff debts
Track income, exp. Net Worth
Compound Interest
Motley Fool – writer, made him a better investor
Circa 2015 – writes for Motley Fool
No formal investing or money background, Business major in college
Rich Dad, Poor Dad – his dad gave him the book, and that started the process iof investing
Compounding – power in just saving in Index funds, for 99% of people
Conference calls, business
Modern Tech – easy to buy and sell stocks, so just look at as a ticker when really it’s a business.
Earnings, management team
L/T – money earnings increase business fund.
S/T – stock can fall emotion
Tom Gaynor – Markel Corp., considered a Baby Berkshire with insurance float
School does not teach investing or stock market, 401 K even in business school.
Brian has written for Motley Fool for 7 years +, written over 3000 articles
Book – took 1 month for the outline, 18 months total to complete, 1 year to write & 6 months edit.
Corporation – owned by shareholders stock – piece of ownership and % publically owned after IPO, Record keeping tools
Stock Market – place where investors and business owners meet, like Farmer’s Market – producers of food sell to consumers.
Stock market Indicies – small sampling of stocks, and average of price for reporting. Ex: S&P 500 tracks price movement
Dow Jones industrial average - 30 stocks. WSJ – 1896 Dow Jones Average. Started by Charles Dow and Edward Jones
NASDAQ – online market
No internet – in the past, 1980s and before, got stock prices in newspaper or periodicals
Market Cap – size/value business
Dollar price used for Dow Jones average
NYSE – physical meeting place on Wall St. Most famous exchange
NASDAQ – world’s first electronic exchange, can trade electronically. Easier and faster – no paper.
Footsie – UK Dow Russell 3000 – 3000 small companies
What to look for when researching a Stock:
Stock – Investor Relations section on company website, Check Profits, earnings, growth, product
SEC filing – 10K filing annual filing with financial st., quarterly is 10Q
Management – hard to judge, Want manager (CEO) to also be the Founder
Company IPO – get rich, so they choose to stay on
Inside Ownership – 5%
Glassdoor – is it good to work there?
Track record – financial numbers matter on stage of business – newer, less than 10 years
Hypergrowth – focused on growth and well capitalized
Mature company – optimized for profit, valuation. Ex. - Google
Index Investor vs. Individual Stocks
Buy individual stocks to outperform the market
Guarantee the market return with Index
Avoid large slow moving companies that pay dividends ex – Johnson & Johnson
You want to find the next Amazon, next high growth company that can 10x the return
Multiply capital many times over vs just 1x
Hold Period is L/T, 3 – 5 years
S/T – less than 3 years, hard to measure stock
Market forces take time, 3 years +
Hard to know when to sell, scenario changes, more info comes to light, disproves original investment thesis to buy the stock
Investing Topic:
https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement
More 'Best of Investing': Here
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
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