158 episodes

The Investing for Beginners Podcast offers premium investment guidance for beginners to decode industry jargon, silence crippling confusion, and help you overcome emotions-- by looking at the numbers.

The Investing for Beginners Podcast - Your Path to Financial Freedom Andrew Sather and Dave Ahern

    • Investing
    • 4.1, 540 Ratings

The Investing for Beginners Podcast offers premium investment guidance for beginners to decode industry jargon, silence crippling confusion, and help you overcome emotions-- by looking at the numbers.

    IFB159: Trailing Stops For Value Investors and Aggresive Investing In Your 40s

    IFB159: Trailing Stops For Value Investors and Aggresive Investing In Your 40s

    Announcer (00:00):







    You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.







    Dave (00:38):







    Welcome to the Investing for Beginners Podcast episode 159 tonight, Andrew and I are going to pick some time out, and you’re going to talk About some listener questions that we got recently. We’ve got some fantastic ones as always. And so we thought we would take some time and answer those on the air for you guys. So I’m going to go ahead and read the first question. It’s in two parts. So I’ll go ahead and read the first part of the question. We’ll answer that. And I know we’ll come back to the second part.







    Dave (01:00):







    So the first part is, hello, Andrew. My name is Tim, and I started investing in January of this year. I’ve been listening to the investors podcast around episode 42 now, and have been very grateful for the advice that both you and Dave have shared as it has helped me get a broad understanding of the stock market and the confidence to get my feet wet. I’ve also appreciated that I choose your podcast. I chose your podcast and ebook to get started as all the metrics and strategy of value investing general makes sense to me as a nerd who likes numbers, yay.







    Dave (01:32):







    The ratios and rationale behind them make so much sense. So the first question is listening through the podcast so far, I’ve heard both you and Dave talk about the importance of setting trailing stops to stop your losses before they get too far down, which makes sense at the time I am 27 years old, and I’m, it makes sense to hold for the longterm and not to buy and sell all the time. Both of these strategies seem to clash heads a little bit in the current environment of a stock market collapse. From what I have learned, I would think that the trailing stops are when the market is relatively stable, and stock is still hitting the trailing stop that you are talking about—otherwise, everything you need to be sold. And then the compounding of drip would not take effect. Also, I know that I have not lost money until I finally sell, from listening to some of the more recent episodes. It seems at times like those, it seems at times like these, that it is about whether you trust it and the research you’ve done in choosing a good company, is this the correct way to think of things? Or am I missing something? Andrew? What are your thoughts?







    Andrew (02:36):







    Yeah, this is a great question, Tim. So it kind of comes down to one of those ideas where it sounds nice, but in practicality, it’s not the greatest strategy depending on how ...

    • 30 min
    IFB158: Stock Picking for Dummies

    IFB158: Stock Picking for Dummies

    Announcer (00:00):







    You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.







    Dave (00:38):







    Welcome to the Investing for Beginners Podcast. This is Episode 100 Tonight, Andrew and I are going to talk about stock picking for dummies. So we have some stories we’d like to pass along to you guys, and we have some ideas that might help you along the way with picking out some stocks. So, Andrew, would you like to talk first, or would you like me to talk first?







    Andrew (00:58):







    I think your story is the better one. So maybe it’s such a perfect illustration of how, when you’re picking stocks, it’s really easy to get caught up in the numbers or get caught up in a narrative or get caught up in your biases, tore the stock. And sometimes depending on what price you’re paying with for the stock, it’s creating these expectations that you don’t realize might be unreasonable. So tell your story first.







    Dave (01:30):







    Okay. All right. We’ll do so. A lot of you know that I have been watching the videos that Professor Aswath Damodaran does on YouTube.







    Dave (01:41):







    And I’ve been studying valuation with his MBA classes as well as his undergrad classes. And it’s very interesting and very enlightening. And he was telling a story on one of his lectures the other day that I thought was kind of fascinating. And I shared it with Andrew a while ago, and we thought this would be a perfect illustration of what we’re going to talk about tonight. So what the professor related to all of us was that he had a student that part of their project is to do a valuation of a company at the end of the semester. And so one of his students presented his findings at the end of the semester, and everything was really good except for one small detail. So he called the student in and had him come in and talk to him about his, his work and everything.















    Dave (02:29):







    And the professor went over everything and said, there was a lot of great stuff in there. And he asked him why he chose the company, and the company he chose was Tesla. And so without talking about any of our biases about the stock, the young man said told the professor that he liked Tesla. I thought it was a great company, really like the Elon Musk, and had a lot of respect for him and, and those kinds of things.

    • 30 min
    IFB157: Price Ratios and Old Investing Books – Still Relevant

    IFB157: Price Ratios and Old Investing Books – Still Relevant

    Announcer (00:00):







    You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.







    Dave (00:36):







    All right, folks, we’ll welcome to Investing for Beginners podcast. This is episode 157 tonight, We’re going to return to the well, and we’re going to answer something, Listener questions. We’ve got some more great ones, and we thought we would take some time and answer those for you guys on the air. So without any further ado, I’m going to go ahead and read the first question.







    Dave (00:54):







    So I have to whom it may concern. I am currently beginning to understand slash calculate ratios recommended by Andrew, such as P E P S and PB I E price to earnings price, to sales and price to book where I am caught up is about the idea that one of these right ratios might carry more importance than another. For example, the canopy, the company canopy growth company, a CGC has a current PE of zero and a PS of 18, assuming most likely due to new slash growing company. I know that these are not normal numbers. For example, JP Morgan or JPM has a PE of 11.16, a PS of 2.06, and a price to book of 1.05 that indicates a discount price and a great buyer returning to CGC. Their price to book ratio is currently 1.76 again, indicating a sort of sale. I know this is not a great example of the normal PE and PS ratios. However, I found it a great example of prioritizing with ratios matter. Please let me know if there is any analysis slash information you can provide into weight given to these ratios and which one might take priority, and how are these affected by new companies? Thank you, Ethan. Andrew, what are your thoughts on Ethan’s question?







    Andrew (02:13):







    Yeah, it’s a very good one. So the whole point of these price ratios is to try and get some context on the numbers. So there’s not some magical Excel file anywhere out there that says, you know, if your PE is a 12 and not a 13, then you’re going to be golden. The stock market isn’t that it’s not some game with boundaries where you can just put in ingredients and get the magical result. So where these price ratios come into play is it tells me when a stock is very, very expensive compared to a lot of other different stocks. And so, you know, even you talk about here, how you say that this isn’t a great example. I think it’s maybe the perfect example to illustrate where price ratios can be very helpful because, as you said, the company has a PE of zero and the price to sales of 18.















    Andrew (03:18):

    • 49 min
    IFB156: Q&A – Dripping Into Retirement, Lump Sum Investment After the Pandemic

    IFB156: Q&A – Dripping Into Retirement, Lump Sum Investment After the Pandemic

    Announcer (00:00):







    You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.







    Dave (00:36):







    All right, folks, welcome to Investing for Beginners podcast. This is Episode 156 tonight, Andrew and I are going to take a few moments, answer some listener questions. We’ve got another great batch of them this weekend. So we wanted to take a little bit of time to answer those for you guys on the air. So I’m going to go ahead and read the first question, and then I’ll throw it over to Andrew, and then we’ll do a little give and take. So first I have, hi Andrew. I’ve been listening to your archived podcast for the last few weeks, and I like what I hear. Long story short. I’m coming late to the party. I’m 61, and some inherited stocks and mutual funds for my parents. I’ve just let them sit and ride for the past couple of decades. And they’ve done very well. This COVID market crash got me interested in investing in some value stocks that have hit bottoms through no fault of their own. I’ve already made some small missteps and what to avoid more. My question is, at my age, is it too late to realize much profit from drip? I’m in good health, but logically we’ll need to rely on savings and portfolio balances within ten years. Thanks, Diana. Andrew, what are your thoughts on her question?















    Andrew (01:39):







    Well, I think it’s a question that’s impossible to answer. We don’t know what percentage of the money is in stocks versus mutual funds versus, you know, how much is there in cash. I think maybe we can put ourselves in, in the footsteps of maybe let’s take two different scenarios. This is not professional advice or anything, but you know, how would I react now? So maybe firstly, how would I react if I had, let’s say, I don’t know. I don’t know what the numbers are. Let’s say a $500,000 and stocks and mutual funds. And let’s say that that’s supposed to fund my retirement and I’m going to retire in 10 years in a situation like that. I think generally anybody who knows about personal finance has learned about it, been educated. They’ll generally tell you the closer you get to retirement, the more you want money in bonds versus stocks.







    Andrew (02:53):







    And the reason for that’s very simple, the stock market has gone up for a very long time, and over the very long term, it’s gone up for a very long time. And the reason for that is because there are very few things in the world, like a public corporation and businesses and the ability for businesses and people inside of businesses to grow businesses, to create more cash flows and serve more customers. And there’s nothing like that. And so as condominiums have grown and as busin...

    • 28 min
    IFB155: June Q&A – Insider Trading and Investing Like Peter Lynch

    IFB155: June Q&A – Insider Trading and Investing Like Peter Lynch

    Announcer (00:00):







    You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.







    Dave (00:36):







    All right, folks, we’ll welcome to Investing for Beginners podcast. This is episode 155 tonight. Andrew and I are going to take a moment, answer some listener questions. We got some great questions recently, and we thought we would take a few minutes, which, who are we kidding. It’s going to be longer than a few minutes and answer some of those questions for you guys. So I’m going to go ahead and turn it over to Andrew. He’s going to go ahead and read our first question to us. So Andrew, why don’t you go ahead and take us away, big guy?







    Andrew (01:01):







    Yeah, let’s do it. So this one is from Alex. He says either question about inside their training metrics, several websites keep track of inside their training, not the illegal kind. And I was wondering what you thought about this qualitative metric. Is there any data showing inside their training as being indicative of a stock’s future performance or anything you’ve noticed from your personal experience? So, Dave, I know you just wrote a blog post about this, coincidentally, so you’d be the man to answer this one.







    Dave (01:33):







    Okay. Yeah. Thank you. So yeah. Alex. Yeah, that’s a great question. So there is no specific metric that I’m aware of that will tell you that this is a bonus for the company to drastically improve their stock performance because insiders are trading on the company. Generally, if you see an insider, we’re talking about, let’s back up for just a second. So insiders, what are insiders considered any sort of management that’s involved in the company? Most people think of more of the upper-level management, like a CEO, CFOs CEOs, people of that nature, like the C suite kind of people. Still, it also does involve a district manager vice presidents, lower-level managers of that elk. So anybody that has a substantial amount of wealth tied up in the company. Part of the shares that they get for compensation for working for the company.







    Dave (02:40):







    so Isn’t, it, it doesn’t correlate to, let’s say a private banker, our banker that works at Wells Fargo. That’s investing his 401k in a company. It’s not that it’s more about the stock options that are given to an employee as a form of compensation or pay for the employee. So when they exercise those options, that’s considered insider trading. There, they call it insider trading because they’re insiders. They work for the company.

    • 37 min
    IFB154: Garbage In, Garbage Out

    IFB154: Garbage In, Garbage Out

    Announcer (00:00):







    You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners led by Andrew Sather and Dave Ahern. To decode industry jargon silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.







    Dave (00:36):







    All right, folks, we’ll welcome to Investing for Beginners podcast. This is episode 150 people. Andrew and I are going to talk about garbage in garbage out. We’re going to talk a little bit about how you focus and what you take in. Can it impact how you think about things, Andrew and I were talking off-air about some of our ideas of, of some of these things, and we thought we would share some of those with you tonight. So, Andrew, I’m going to go ahead and turn it over to you, and why don’t you go ahead and get us started?







    Andrew (01:06):







    Yeah, definitely. So I think as investors, something you need to keep in mind is, and I hope I don’t come across this way when we talk about investing, but in my opinion, investing isn’t something you can just snap your finger and go and expect good results. Particularly if you’re going to be kind of poking around and trying to get involved with the businesses, understanding the businesses you own and understanding the principles of investing, you know, we’re doing this for the longterm, we’re diversifying where we’re making good habits and depositing money and investing money over time. These are all sorts of basic foundations of good financial sense. Good investing sense. And so when you talk about the mindset that goes behind it and the thoughts, what comes in your inputs and then how that translates to the type of businesses you’re investing in. I think it’s worth the conversation to, to maybe audit how you’re doing that and understand that it’s not going to be a snap of a finger.







    Andrew (02:17):







    There is going to be some effort involved. I think if you want to be good at anything, you’re going to have to put effort into it, and there are no shortcuts. And so if you can supercharge those efforts and make things as effortlessly as possible, that can do a lot for your end goals and maybe reaching financial freedom one day. And so there’s been a lot of chaos with media these days. I would say, personally, I feel media exhausted, and this hasn’t been necessarily that intentional for me lately. I kind of stumbled it, but in the past few weeks have been making it more intentional. That’s the idea that you need to. What I found for myself is I didn’t realize how, how, how many things I was letting to come into my valuable space, and my valuable time. And so I don’t know how much of this has to do with the way technology has changed the way things are, you know, back in the 1950s you had the daily newspaper get delivered to your door, right?







    Andrew (a href="https://www.temi.com/editor/t/yz0Mb_rzj3O8NBOUN5oK5LntaX0AWduKzvtHu-uaDV...

    • 31 min

Customer Reviews

4.1 out of 5
540 Ratings

540 Ratings

Soccer player, basketball player, guitarist and a/b student what now ,

Love this podcast but little sexist

I love this podcast listen to it every week. I am still on the 2017 episodes so if this issue has resolved itself please ignore this review. As of the 2017 episodes, most pronouns that are used to describe investors in general are “he, him, guys, etc.” As a female this is a bit offensive and discouraging for me to hear when I listen to this podcast. Please adjust your verbiage to include gender neutral pronouns unless this podcast is only for men.

VES89 ,

Sexist

Good info but sexist. Not only do the hosts use solely male pronouns buts in the episode “Investing in 100% Stocks even with Conservative Investing” one of the hosts made a comment referring to stock investing “It’s like a woman, it’s not like you’re never going to have problems with her.” 😳🤯Yikes....
When it comes to stocks you might be educated but when comes to life, you’re ignorant. Do better.

zackstewart3210 ,

Re listening through the log!

Great information and I have learned a lot from you guys. I have gone through and I’m listening to all the episodes with that being said I you guys railed Tesla and Amazon in 2017 and 2018 I would just like you guys to acknowledge how incredible wring that take was. However, love listening to the show keep up the good work

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