87 episodes

Do you want to learn how to manage your own investments? Are you ready to stop paying investment management fees and start building wealth? The DIY Investing Podcast is dedicated to providing you with the knowledge, skills, and resources you need to be a better investor. Learn how to make investments through the use of fundamental analysis, mental models, and business management insights.

Please visit our website and subscribe to our mailing list at DIYInvesting.org for guides, videos, and resources to help make you a better investor.

The DIY Investing Podcast Trey Henninger

    • Investing
    • 4.7, 29 Ratings

Do you want to learn how to manage your own investments? Are you ready to stop paying investment management fees and start building wealth? The DIY Investing Podcast is dedicated to providing you with the knowledge, skills, and resources you need to be a better investor. Learn how to make investments through the use of fundamental analysis, mental models, and business management insights.

Please visit our website and subscribe to our mailing list at DIYInvesting.org for guides, videos, and resources to help make you a better investor.

    Cost of Growth Valuation and Asset / Earnings Equivalence

    Cost of Growth Valuation and Asset / Earnings Equivalence

    Growth is not free for most companies. It costs something. The cost of growth valuation model takes into account return on invested capital when valuing stocks. Most companies have to retain earnings in order to grow.

    Assets are only as valuable as the earnings they create. You can't take credit for both book value (assets) and earnings power in the same valuation on a stock. It's a problem of double counting that leads to overvaluation.

    • 32 min
    The Tyranny of Backtesting: Why Backtests are harmful and counter-productive

    The Tyranny of Backtesting: Why Backtests are harmful and counter-productive

    Investors use backtests in order to test whether a portfolio's asset allocation would have performed well in the past. The use of backtesting is harmful to a portfolio because it ignores uncertainty and overstates the value of empirical evidence.

    It is much better to reason from first principles using deductive reasoning. This deductive reasoning is better than inductive reasoning for investors because it eliminates hindsight bias.

    • 37 min
    Precisely Wrong, Roughly Right: Why DCFs are theoretically correct but should not be used

    Precisely Wrong, Roughly Right: Why DCFs are theoretically correct but should not be used

    Discounted Cash Flow calculations and models provide precise estimates of intrinsic value but tend to be flawed. It is much better to improve accuracy by ignoring DCF and using a simple intrinsic value calculation like the Gordon Growth Model.

    This podcast episode breaks down the components of a discounted cash flow model, points out the flaws, and proposes a solution for investors to use a simplified version in DCF calculations.

    • 36 min
    Would you buy your employer's stock?

    Would you buy your employer's stock?

    The company you work for should be the first place you look to begin understanding how to perform scuttlebutt. Investors should analyze their employer's stock as a potential investment candidate. Culture, Quality, and Management are key areas.

    Today's Fundamental Analysis Challenge: Would you buy your employer's stock? Is it a high-quality company? What is the intrinsic value? Your employer should be well within your circle of competence.

    • 22 min
    Key Drawbacks of the Banking Industry

    Key Drawbacks of the Banking Industry

    Banking is an industry with many key drawbacks including dependence on management for risk reduction, high leverage, low returns on equity, bankruptcy risk, and lack of pricing power because money is a commodity.

    The 2008 financial crisis is fresh in everyone’s minds. We understand what can happen when banks fail. It is harder to see the massive deals available in the banking industry when a recent crisis is so prominent.

    • 29 min
    Why Banking is an Attractive Industry

    Why Banking is an Attractive Industry

    Banking is an industry with characteristics that are quite attractive to long-term investors. Properly evaluated, a bank can make a great investment. High retention rates, lower competition over time, and the durability of the industry are what attract me to bank investing.

    • 36 min

Customer Reviews

4.7 out of 5
29 Ratings

29 Ratings

Wob_ble ,

For those who pursue true understanding

This podcast is a must listen for those seeking to understand investment decisions on a fundamental, first principles level. Trey not only gives you relevant, actionable insights and information, he shows you the math of how he gets to them and in the process thereby teaches you not just what to think but how to think more deeply and make wiser decisions. There are a lot of investing podcasts out there that do nothing but circulate short term news and speculation, most of which turns out to be empty in retrospect. This is not one of them. Earn compound interest on your time: listen to this podcast.

mykoheleth ,

Oil majors

I follow oil... really enjoyed your insights!
I would add only that XOM I believe has had to rely on debt to help maintain its dividend, so this is something to watch out for. And we’ve seen Shell cut it’s dividend. I think Chevron and BP, in that order, probably have the strongest balance sheets to keep up their dividends.

BP says it has even more cash than it did ten years ago when the offshore well blowout occurred— everyone sued them, and they survived. I think they will survive this, too.

Deezeezy ,

Great

Like treys very detailed look and tactical explanations

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