16 min
How to build your stock portfolio (value vs growth stocks) Market Adventures: The Journey to Financial Freedom
-
- Investing
A few considerations when building your stock portfolio
“I am not a registered investment advisor or securities broker dealer. These are my thoughts and are not advice. Seek your own education or you will lose money.”
Scroll II: The Greatest Salesman in the World
I will greet this day with love in my heart
Value
Old-timer, long history
Strong moat
Consistent dividend
Some tools I use
10 and 5yr chart (monthly and quarterly)
Consistent EPS
Free cash Flow
Net Operating margin
Long term debt-to-capital
**Graham number: Square root of (22.5 x EPS x Book value)
Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities. Book value can also represent the value of a particular asset on the company's balance sheet after taking accumulated depreciation into account.
Examples
KO, JNJ, INTC, MSFT, MO, XRX
Growth
Cultural (ex. uber)
Room for growth
Ability to scale (ex. Raise prices, ad revenue, user base)
Market share
Competition
Spending
**LEADERSHIP
How do you know where to go?
Financial management
Personal free cash flow
Free time to get educated
More time to learn + free cash = growth
Less time to learn + free cash = value
More time to learn + less cash = options & growth
Less time to learn + less cash = fractional companies you use a lot
WHAT’S THE KEY: Learn → test → “perfect” → Scale up = $$$
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Is the Stock Market the answer for you? Learn more: https://gum.co/VxJLm
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This episode is sponsored by
· Anchor: The easiest way to make a podcast. https://anchor.fm/app
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Send in a voice message: https://anchor.fm/marketadventures/message
Support this podcast: https://anchor.fm/marketadventures/support
A few considerations when building your stock portfolio
“I am not a registered investment advisor or securities broker dealer. These are my thoughts and are not advice. Seek your own education or you will lose money.”
Scroll II: The Greatest Salesman in the World
I will greet this day with love in my heart
Value
Old-timer, long history
Strong moat
Consistent dividend
Some tools I use
10 and 5yr chart (monthly and quarterly)
Consistent EPS
Free cash Flow
Net Operating margin
Long term debt-to-capital
**Graham number: Square root of (22.5 x EPS x Book value)
Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities. Book value can also represent the value of a particular asset on the company's balance sheet after taking accumulated depreciation into account.
Examples
KO, JNJ, INTC, MSFT, MO, XRX
Growth
Cultural (ex. uber)
Room for growth
Ability to scale (ex. Raise prices, ad revenue, user base)
Market share
Competition
Spending
**LEADERSHIP
How do you know where to go?
Financial management
Personal free cash flow
Free time to get educated
More time to learn + free cash = growth
Less time to learn + free cash = value
More time to learn + less cash = options & growth
Less time to learn + less cash = fractional companies you use a lot
WHAT’S THE KEY: Learn → test → “perfect” → Scale up = $$$
---
Is the Stock Market the answer for you? Learn more: https://gum.co/VxJLm
---
---
This episode is sponsored by
· Anchor: The easiest way to make a podcast. https://anchor.fm/app
---
Send in a voice message: https://anchor.fm/marketadventures/message
Support this podcast: https://anchor.fm/marketadventures/support
16 min