Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off
I agree. Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have stron;g hands to back it up.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the drivin;g force behind your success?.
“Sonya Lee Mitchell ’’ is the licensed fiduciary I use. Just research the name. You’d find necessary; details to work with a correspondence to set >up an appointment.
I recently graduated about a month ago from college with a degree in finance. I wanted to ego over my course material and came across this video. This is EXACTLY as it was taught to me in uni. Great video sir. Thank u
The best times to buy in 2020: March 18, May 15, July 1, October 29. 100k would have become 200k. 200k would be 400k. 400k would be 800k. 800k would be 1.6M.
Utilizing forward P/E ratios is what got Enron in trouble. The books were being cooked and management was stating their earnings would constantly keep going up. Because of that, the analysts kept rating the company a "Strong Buy"...up until the glass house started falling apart.
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Investing in different kinds of assets can mitigate risk more effectively than placing all of your capital in one. See a financial professional if you don't comprehend finances well enough.
A multitude of individuals downplay the significance of advice until their own emotions become unbearable. A few summers ago, after a drawn-out divorce, I needed a big shove to stay afloat with my firm. I located the most qualified advisor after searching for licensed advisors. Despite inflation, she has helped me grow my reserve from $275k to $850k.
'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Though multiples seem helpful, I'd argue probably one of the more important things is consistent positive cashflow and low or no debt. "Companies that have no debt can't go bankrupt."
Thats the definition of a value stock, usually used for dividends. Those pay way less than growth companies have the potential to. Altough since they have much more equity/share they are safer
I’m not a big time investor but what has worked for me in the past is very simple. Is the business revenue increasing year over year? Is the business making a profit? Does the business have good cash flow and is operating on a 15-20% margin? Does the stock pay dividend If yes I buy. Keep mind the difference between a trader and a investor
D Rod I am not even that good with terminology and analysis of stocks but that strategy has been working for me too, my only conditions are, has the stock been moving up for more than 5 years, is the company reliable, does it pay dividend... if yes then buy.
Gioxtream right now is not a good time to buy because the whole market is declining due to the corona virus in china but good stocks are apple, netflix, facebook, s&p500, VOO ..... etc.
LOL, been sitting on my $332k 'emergency fund' for ages, and I still can’t figure out when to dive into the market. These stock multiples confuse the heck out of me. Anyone know a cheat code to make sure I don’t overpay for a stock?
I feel you! Honestly, waiting for the perfect moment is like trying to time when my cat stops judging me. 🙄 But hey, an investment advisor helped me sort through that madness. Maybe worth giving one a shot before you sit on that pile forever?
There are a handful of CFAs out there. I’ve tried a few, but I’ve stuck with Linda Aretha Reeves for a few years now. Her performance has been consistently impressive-she’s well-known and respected in the field. Give her a look!
Opinions diverge; some claim overvaluation due to rapid gains, while others cite strong economic fundamentals justifying high valuations. Raises concern for my $600K equities going 8% up and 20% down. Should i hold on or sell off my positions and hold cash?.
I do agree, Investing has gotten difficult especially after pandemic, hence why I decided to use the expertise of an advisor, my spouse kicked against the idea initially, but oh well guess who's best buddies with our advisor now hehehe.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
This is the best analogy on how to analyze a company fundamentally based on PE ratio. The example of comparing price of meats in a grocery store really reminds me of what Peter Lynch says in his One Up on Wall Street, and what's better, even easier to understand. Thank you for the smart and hard work. Very appreciated!
It’s easier to make money now, investors should make more practical moves this coming year and seek guidance where needed since the future is unknown. Stocks with solid operational performance and financial strength, should be considered .
I think it’s best for investors to play it safe, No one can say what how the stock market will turn out this year. I bought some stocks I expected to do better but they didn’t.
The markets are looking favorable, after so much deliberation with my wife, I feel this is a good time to invest a lump sum of $700k ahead of retirement. What stock should I Look into to safely grow my money?
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash.
True. Having the right financial planner is invaluable. My portfolio is well-matched for every season of the market and recently hit 90% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, though this could take till Q3 2024.
'Natalie Ann Brinkman' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thanks dude! There's an animation program called Vyond that you could try out. It's not what I use but there are other channels that do animations with it, and I've heard good things. You could try that :)
I usually spend two weeks making my videos, but that's mainly just editing on my lunch break and anywhere from 3-12 hours of editing over the weekend. I do things pretty manually through Adobe Premiere though, I'm sure Vyond would be a bit more efficient
I love the emphasis that the P/E ratio is really only useful with more context. The P/E ratio may be higher or lower than competitors for a GOOD reason, and we have to take the initiative to find out why!
Exactly. I have seen examples of companies with high P/E with ever increasing profits. In essence, they actually WERE great companies and always delivered accordingly. Also, it's unreasonable to expect the amateur investor to be able to find "a good deal" that the market hasn't already embedded in the stock price. There’s no free lunch.
You can, just not with perfect accuracy and not from one metric. However if the P/E ratio is 1,200 and the business plan doesn't address how the company will eliminate Agent 007, I think it's safe to call it expensive.
You can determine if it is cheap or expensive. There is no true answer what the company should be evaluated though. So you have to speculate on what others will evaluate it in the future
This does a good job of explaining why Buffett exceeded Ben Graham as an investor despite Buffett learning from Graham. Graham looked for value wherever he could find it and ignored the fundamentals of the business. He often found that despite finding a “deal” on the stock it went nowhere. This is due to the fundamentals of the stock. Charlie Munger introduced to Buffett the idea of finding quality businesses bought at a fair value and the rest is history.
I’ve been investing for the past 6 months now, like VOO, Coca-Cola, VT, so far. But I want to find more individual stocks and I’m struggling with the intrinsic value but I’ll get it. Thanks for the video
One thing I’d add to your analysis -> P/E is extremely impacted by leverage, taxes and, on the contrary, does not reflect how efficient a company is with its cash cycle through NWC nor does it include its regular CapEx. I know it’s probably too complicated for a non-financially literate individual to compute the FCF of a stock but I would at least combine a P/E multiple to its EBIT / EBITDA multiples or even Revenue to see how overvalued a stock is compared to its peer group.
I get ur point but warren buffet also says that depriciation is a real expense and should be considered during calculation. peter lynch also uses p/e in his fair value formula in one up on wall street. What if the value of a stock comes out over valued with p/e and undervalued with p/revenue or vice versa?
Wow I understand multiples and their roles now. college was a rip off, ten minutes in this channel and I can discuss more intelligently than my peers in any field
@@davidluong8370 nah, top tier universities dont teach you anything. I’d learn wayyyy more if I went to a shitter school. My university is just concerned with research and the teachers are here for mainly research purposes and couldnt care less about what we learn
@@davidluong8370 « if you don’t got any hustle, it wouldn’t matter what university you go to » I think we’re saying the same thing. Universities don’t teach you anything. You teach yourself. I never said I went to a top tier university, but it’s the best in Ireland - Trinity College Dublin. It’s just id have learned way more in a lower tier university. You go to higher level institutions, not to learn more, but to have a better looking CV despite learning the same amount, to network and to mature.
Thank you for posting this video, but it's still clear as mud. What has always amused and amazed me are tools such as Yahoo Finance. For many stocks and mutual funds a recommendations chart is provided showing where the experts stand. There's usually 1 to 4 experts that will say "buy or strong buy", 10 to 16 "hold" and 6 to 4 "sell". After I look at all of the charts, the data, info, advice, etc., it usually comes down to my gut.
And this is exactly why you do not have anything to gain by having someone invest on your behalf at a fee. It has been proven time and time again that "experts" cannot even consistently beat the market. It is approximately a 50% chance whether they will be able to do it, and when they do it is because of luck and not their ability to do it consistently. You are much better off investing into a few index funds in such a diversified way, which gives you exposure to capitalism's growth as a whole.
First of all you're fricken adorable which made watching this video tolerable versus other poorly explained explanations of P/E ratios from non-adorable people. Shallow, yes but I'm owing it! Since you've made P/E ratios crystal clear as one of many multiples when considering stocks, you're earned my trust and I'm now following your channel. Thanks for being adorable!
This channel is excellent, and you’d have ten times the viewership with more relevant branding. Just a free tip from me in exchange for all the ones I’ve learned from you.
Useful video. Have you also done one on understanding the fundamentals you mention en passant? And I'd like to know what the story is for non-dividend stocks, eg small caps. How do you know if a non-div stock price is fair, or a south sea bubble?
It's clear that you have a good handle on this subject. It's clear that you did your homework. That's all that's clear tho. Because understanding something and being a teacher are two very different animals.
Most developing stock traders tend to think in terms of how much they can earn from a trade while professional tend to think in terms of money management. Literally it is best to be an investor with an expert trading account it saves a lot in your course.
I'd be pleased with a 50% increase in my account at the end of the month. How can one certainly profit more in this business, does it mean to minimize the risk by trading with an expert advisory?
Trading with someone experienced has changed a lot in my approach and instincts. I now see things clearly from my advisory perspective, Jim oddain uses certain trading techniques that’s proficient in his portfolio account.
In summary, they don’t know, we don’t know, I don’t know, you don’t know, your uncle doesn’t know, if we knew, then the analyst would be right, an analyst is always wrong, what makes you think you’ll be right, this is all based off of hopes and a little bit of historical info, hence why analyst are trending with topics like *Analyst shocked with the results of *insert company that did the opposite of what the analyst predicted* after it sky rocketed* we don’t know anything, so just pray to God you’re right and don’t over exaggerate a call or trade, bless up, keep your hopes up.
Hi , I am a beginner in stock market analysis and I am just covering the theoritical part right now . Here are my questions to you- Suppose you see a company's average p/e is 10x and its current p/e is 7x There can be two reasons why it is what it is 1) the price of the stock decreased and the earnings per share remain the same lengths . Which is a good sign , I guess 2) the earnings per share decreased i.e the net profit of the company is on decline . Which is potentially a bad sign . But as deemed by the 2nd case in the video , i.e when potential buyers buy the stocks even more and price of it increases knowing the fact the EPS is decreasing . These are my conclusions that are taken of the examples that plane bagle gave in the video . The two graphs shown by him mean the same two cases . I doubt it , alot , is this how it really works?
Ok , I can now see the bigger picture , in the 2nd case , he mentions the profits being decreased but the stock price still being increased . That means the buyers see a potential in the business to grow . A bang for the buck , in a good way , should I be investing in those type of companies then? Should I follow the flow , or should I just follow my own path , own path seems more safer though .
Thanks for another great video. Is the value that's reported on earnings day an EPS value? And if so, why does it seem to be different from EPS when I compare them?
Honestly I feel it goes beyond how to tell if a stock is cheap or expensive, other things come into play before placing a trade. Pattern recognition, stock picking, when to buy or sell, entry and exit points? A few must knows for every newbie before getting around to placing a trade, Don't rush the process. I started profiting from the market when I discovered a better and more effective way to trade and make money. I'll be on to seven figures by years end. Kudos
Truth be told I'm yet to find a video that breaks down the whole process to a newbies level. When I solve one challenge another pops up. What's the general solution to losses. How have you been profiting? I need a better way to trade
Through the decades stock trading has proven to be profitable to several individuals around the world But personally you'll never understand how profitable stock trading is until you start investing in the share market I got into the trade market with a 6k deposit, today I’ve more than 6 figures saved in just seven months. You just have to brace yourself for this rollercoaster ride because it gets real freaky And if you aren't properly locked in you'll fall out and incur great detriments to yourself
Lol my friends didn’t believe me either when I told them I’d began making good figures off the trade market while in retirement,they thought I did it myself but it was working with a pro risk analyst and trader Noud Mika, he trades on my behalf in the market and generates profits on my behalf his services has been gold to me.They do shout - outs about his services on MarketWatch as he also trades for newbies with difficulties generating profits themselves
Having professional minds guide you isn't much of a bad idea as I find it pleasing and intriguing,Coming from someone who has placed so many trades all gone down the drain is there anyway I could get to your trader ,or at least peruse through his bio..I'm greatly in need of help man
Hi! Would it be possible for you to do a video about the efficient market hypothesis? I’d like to know your opinion on this as it is kind of controversial. Thanks
Your channel has been an absolute lifesaver for me. I was really struggling with binary options before I found your videos, but your strategies and insights have given me a whole new level of confidence when it comes to trading. Thank you so much for all the hard work you put into your channel
Great video. Stock picking is hard, which is why very few people beat the market in the long term. Until I can pick stocks with certainty, i'll stick to passive indexes with low fees.
I’m a big fan of PEG price to earnings growth and the PS ratio for growth stocks that are still in/near their infant stages. Good way to gauge relative valuation, top video mate!
I've watched this video so many times throughout the years sometimes just for entertainment. But until just now I don't feel like I fully understood everything. Three years of compounding down the drain. Oh well 😅 For anyone else who doesn't wanna waste their time it surely helps to have a platform where you could get reliable numbers from. Btw great video 👍
One thing to consider is how the P can change based on how banks and funds view an industry. I can buy shares in oil-related companies in Norway for lower multiples than some years ago, since some banks and funds no longer invest in those industries.That limits the potensial upside in share price. But make it easier to get a good dividend, since I can get in at a lower price.
I know a lot of people are scared of the market crash. Trust me it won’t last forever, we should be expecting an upsurge anytime soon. I will drop some few stocks my portfolio manager suggested i add to my portfolio…. Good luck everyone (VIAC, USMV, SQ)
I’ve lost a fortune on trading and i don’t think i can go on trading for myself. Robin hood has trusted me this past months, at this point i need professional help. I will really appreciate if you can link me up with your Portfolio Manager.
I have got SQ in my handpicked ROTH IRA, it is dropping but there’s no harm in buying when low because it won’t stay LOW forever i’m expecting upsurge soon too!
It is just one of the tools that can be used to measure a company's valuation. There are margins of safety, free cash flow, debt to equity, current ratios and a lot more. Value investing. 😍
It's to do with sentiment on future earnings based on current information. That's it, a stock with a P/E of just 3 times earnings could be very expensive if it turns out they are over optimistic and the earnings go negative. Heres a stock in the UK with a P/E of 3 www.investing.com/equities/intl-prsnl-fin ...looks cheap right?, half price to book, rising net profit, ratios all look good...except regulators might destroy their business model which is sub-prime lending. While they are earning they can pay out a 11%+ dividend...but for how long? low P/E is often as much of a gamble as very high P/E.
Great video, clean animation, expertly explained. 💯 EPS(& therefore P/E) isn't my favorite metric for gauging a company. Can't stand companies slipping extra things into their reported eps to bolster the number. It's a great place to start when searching for an investment opportunity though.
Highly informational and quality video which explains very briefly, and concisely about the PE ratio and it's other prospects. I am an engineer but watching your videos made me grow interest in finance. Can you please provide resources where I can get more information about market analysis and factors?
Why'd you get away from this style of video? It reminds me of the old British Moneyweek videos from over a decade ago that got me interested in accounting in the first place. Some really good basic info here. P/E is one of my preferred metrics, mostly because it helps ask the right questions about a company.
As a forex trader it's almost inevitable that you're going to experience some ups and downs along the way, alertness and decisiveness are both fundamental ingre yupdients in the recipe for a successful forex trader.
This sounds like a classic, being in business for 16 years, this video is about 30% accurate. I strongly advise anyone that sees this video to not just go off of this perspective without having a very good understanding of how reality in the business realm works. There is much more to be explained.
If a stock has a rise in its stock price but it’s fundamental financials stay the same, could that prove to be a problem due to the amount of money they’d have to pay shareholders at the inflated stock price and not having enough capital since their fundamental financials haven’t changed much? I might be totally off base but it crossed my mind with this whole GME craze.
"Chasing low multiples without an understanding of a company's core business and future prospects may leave you with something called a value trap, a stock that looks cheap compared to its historical prices, but continues to fall even further because of the deterioration in the firm's fundamentals."
![BOWKYLION - วิงวอน (ex-change) [Official MV]](http://i.ytimg.com/vi/cLdnZWDaO-w/mqdefault.jpg)
Happy Friday everyone! Have you ever used multiples before when making an investment decision? Which ones do you tend to use? Let me know!
This is going to be a million subscriber channel, please keep up the good work
do a vid on the $1 put option. paper trade from beginning to end on Robin Hood.
P/FCF
A few, P/FCF, P/NTA(or NAV), RoE(if you'd call that a multiple), D/E. Man, now I think about it...a lot.😅
Why don't you talk about 52 week range and day range?
Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Could you kindly elaborate on the advisor's background and qualifications?
Just research the name Rachel Sarah Parrish . You’d find necessary details to work with a correspondence to set up an appointment.
I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.
Just look at the stocks that I've purchased and wait a couple months. The price will go down, trust me.
short it then lol
@@yihtorng then it would go up LOL.
What are the stocks that you bought?
@@yihtorng "ShOrT iT tHeN" Yeah just recommend beginners to short and they end up in debt for the rest of their lives, lmao.
@@finsimple4396 short tsla win
Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment
Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.
Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.
The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off
I agree. Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have stron;g hands to back it up.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the drivin;g force behind your success?.
“Sonya Lee Mitchell ’’ is the licensed fiduciary I use. Just research the name. You’d find necessary; details to work with a correspondence to set >up an appointment.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing_.
I recently graduated about a month ago from college with a degree in finance. I wanted to ego over my course material and came across this video. This is EXACTLY as it was taught to me in uni. Great video sir. Thank u
The question of "is this share selling cheaply?" became really easy to answer in March of this year, lol.
😂😂😂😂
way to rub it in the faces of those who were longing their stock positions.
not necessarily
Yup, it just gives you the opportunity to buy more at a cheaper rate.
Unfortunately I started looking into stocks right before it dipped hard
The best times to buy in 2020: March 18, May 15, July 1, October 29. 100k would have become 200k. 200k would be 400k. 400k would be 800k. 800k would be 1.6M.
Utilizing forward P/E ratios is what got Enron in trouble. The books were being cooked and management was stating their earnings would constantly keep going up. Because of that, the analysts kept rating the company a "Strong Buy"...up until the glass house started falling apart.
P/FCF
Wasn't Enron a ponzi scheme? That'd mean Enron never stood a "chance to survive".
@@rotierender_lurch it was but most people who had invested didn’t realise until news came out
@@jpcorp2274 FCF reported by? The company (Totally no fraud possible)
@@jpcorp2274 what is FCF?
I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.
Investing in different kinds of assets can mitigate risk more effectively than placing all of your capital in one. See a financial professional if you don't comprehend finances well enough.
A multitude of individuals downplay the significance of advice until their own emotions become unbearable. A few summers ago, after a drawn-out divorce, I needed a big shove to stay afloat with my firm. I located the most qualified advisor after searching for licensed advisors. Despite inflation, she has helped me grow my reserve from $275k to $850k.
You seem to comprehend the market better than we do, so that makes great sense. Who is the coach?
'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon. Thanks
Though multiples seem helpful, I'd argue probably one of the more important things is consistent positive cashflow and low or no debt.
"Companies that have no debt can't go bankrupt."
true
company with no debts also grow slowly!
Thats the definition of a value stock, usually used for dividends. Those pay way less than growth companies have the potential to. Altough since they have much more equity/share they are safer
Except fraud exists
Assuming the company doesn't get sued, yes. Companies with no debt can still go bankrupt during a lawsuit.
I’m not a big time investor but what has worked for me in the past is very simple. Is the business revenue increasing year over year? Is the business making a profit? Does the business have good cash flow and is operating on a 15-20% margin? Does the stock pay dividend If yes I buy. Keep mind the difference between a trader and a investor
D Rod I am not even that good with terminology and analysis of stocks but that strategy has been working for me too, my only conditions are, has the stock been moving up for more than 5 years, is the company reliable, does it pay dividend... if yes then buy.
Same here. Those seem to be good foundational points
HUMMM. GIVE US SOME STOCKS AS EXAMPLE.
Gioxtream right now is not a good time to buy because the whole market is declining due to the corona virus in china but good stocks are apple, netflix, facebook, s&p500, VOO ..... etc.
@@tabaresweddingfilms if you think Netflix is a good stock then you really don't know what you are doing. Stick to ETFs
While I’ve known about the P/E Ratio, I never quite understood it till now. Your analogy about meat prices is a perfect explanation. Thank you.
LOL, been sitting on my $332k 'emergency fund' for ages, and I still can’t figure out when to dive into the market. These stock multiples confuse the heck out of me. Anyone know a cheat code to make sure I don’t overpay for a stock?
I feel you! Honestly, waiting for the perfect moment is like trying to time when my cat stops judging me. 🙄 But hey, an investment advisor helped me sort through that madness. Maybe worth giving one a shot before you sit on that pile forever?
Same boat! I need an investment advisor too, but how do you even find a legit one these days? I keep hearing mixed reviews on who to trust.
There are a handful of CFAs out there. I’ve tried a few, but I’ve stuck with Linda Aretha Reeves for a few years now. Her performance has been consistently impressive-she’s well-known and respected in the field. Give her a look!
Just looked up Linda Aretha Reeves, and she seems like exactly what I’ve been needing to kickstart my financial journey. Appreciate the rec!
Watched Linda Aretha at the Bloomberg Finance Summit like 4 years ago! Her presentation was absolutely killer. Definitely one of the best in the game!
Opinions diverge; some claim overvaluation due to rapid gains, while others cite strong economic fundamentals justifying high valuations. Raises concern for my $600K equities going 8% up and 20% down. Should i hold on or sell off my positions and hold cash?.
It may be a good idea to speak with a financial advisor who can help you develop a portfolio based on your individual goals and risk tolerance.
I do agree, Investing has gotten difficult especially after pandemic, hence why I decided to use the expertise of an advisor, my spouse kicked against the idea initially, but oh well guess who's best buddies with our advisor now hehehe.
Glad to have stumbled on this comment, I will like to give this a try. Please who is your advisor and how do I get in touch?
*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details on the web to set up an appointment.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
This is the best analogy on how to analyze a company fundamentally based on PE ratio. The example of comparing price of meats in a grocery store really reminds me of what Peter Lynch says in his One Up on Wall Street, and what's better, even easier to understand. Thank you for the smart and hard work. Very appreciated!
It’s easier to make money now, investors should make more practical moves this coming year and seek guidance where needed since the future is unknown. Stocks with solid operational performance and financial strength, should be considered .
I think it’s best for investors to play it safe, No one can say what how the stock market will turn out this year. I bought some stocks I expected to do better but they didn’t.
Impressive. I’ve been considering stock trading, it’s incredible how much people make daily on the market.
The markets are looking favorable, after so much deliberation with my wife, I feel this is a good time to invest a lump sum of $700k ahead of retirement. What stock should I Look into to safely grow my money?
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash.
True. Having the right financial planner is invaluable. My portfolio is well-matched for every season of the market and recently hit 90% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, though this could take till Q3 2024.
I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you
'Natalie Ann Brinkman' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
*These animations are sooo high quality man! I should start trying this.*
Thanks dude! There's an animation program called Vyond that you could try out. It's not what I use but there are other channels that do animations with it, and I've heard good things. You could try that :)
*Thank you, my sir. How long did it take you to finish this video?*
I usually spend two weeks making my videos, but that's mainly just editing on my lunch break and anywhere from 3-12 hours of editing over the weekend. I do things pretty manually through Adobe Premiere though, I'm sure Vyond would be a bit more efficient
I'm often curious to hear about animation / video graphic production software. Thanks for this little convo
@@ThePlainBagel What animation program do you use?
I love the emphasis that the P/E ratio is really only useful with more context. The P/E ratio may be higher or lower than competitors for a GOOD reason, and we have to take the initiative to find out why!
Exactly. I have seen examples of companies with high P/E with ever increasing profits. In essence, they actually WERE great companies and always delivered accordingly. Also, it's unreasonable to expect the amateur investor to be able to find "a good deal" that the market hasn't already embedded in the stock price. There’s no free lunch.
What I got from this video: How to Tell When a Stock is Cheap/Expensive - Answer: You can't
You can, just not with perfect accuracy and not from one metric. However if the P/E ratio is 1,200 and the business plan doesn't address how the company will eliminate Agent 007, I think it's safe to call it expensive.
@@JETZcorp AKA Tesla
You can determine if it is cheap or expensive. There is no true answer what the company should be evaluated though. So you have to speculate on what others will evaluate it in the future
@@lukaslarsson3136 You can't have a P/E when you dont quite have an E
@@JoelChenFa yes but it will be negative
This does a good job of explaining why Buffett exceeded Ben Graham as an investor despite Buffett learning from Graham. Graham looked for value wherever he could find it and ignored the fundamentals of the business. He often found that despite finding a “deal” on the stock it went nowhere. This is due to the fundamentals of the stock. Charlie Munger introduced to Buffett the idea of finding quality businesses bought at a fair value and the rest is history.
Jimoke history being the $50bn they dropped this quarter? Or their underperformance relative to the S&P 500 this past 15-years?
So basically just invest in a market ETF
What would be an example of fundamentals?
@@hgm8337 Berk.A has grown 5x since it’s low in 2009, slightly better than SPY’s 2009 low.
@@hgm8337 and BERK.A trades at an 8 PE compared to SPY’s 28 PE
6:13 "It's Simply not that Simple".
There's just something to Canadian investment channels...the professional eqtiuette and minimalistic styling makes it so intriguing to watch.
I didn’t know Plain Bagel is from Canada. Good to know.
I remember watching you guys channel last year and you've grown a lot since then. The views are well deserved tho, top notch content.
I’ve been investing for the past 6 months now, like VOO, Coca-Cola, VT, so far. But I want to find more individual stocks and I’m struggling with the intrinsic value but I’ll get it. Thanks for the video
is anything better on youtube than this? already watched it 6 times
6 times eh? That's because he can't teach it well. Once or twice should be enough if it was presented properly
Get a life.
Just a little thank you comment for all the amazing work you do, your channel has truly been a help in explaining core concepts!
Wouah, by far the best, clearest, and most straightforward explanation I have found on TH-cam !
I prefer to buy high sell low. I can do it a lot more consistently and I like consistency in my life.
One thing I’d add to your analysis -> P/E is extremely impacted by leverage, taxes and, on the contrary, does not reflect how efficient a company is with its cash cycle through NWC nor does it include its regular CapEx.
I know it’s probably too complicated for a non-financially literate individual to compute the FCF of a stock but I would at least combine a P/E multiple to its EBIT / EBITDA multiples or even Revenue to see how overvalued a stock is compared to its peer group.
I get ur point but warren buffet also says that depriciation is a real expense and should be considered during calculation. peter lynch also uses p/e in his fair value formula in one up on wall street. What if the value of a stock comes out over valued with p/e and undervalued with p/revenue or vice versa?
Wow
I understand multiples and their roles now.
college was a rip off, ten minutes in this channel and I can discuss more intelligently than my peers in any field
@@davidluong8370 nah, top tier universities dont teach you anything. I’d learn wayyyy more if I went to a shitter school. My university is just concerned with research and the teachers are here for mainly research purposes and couldnt care less about what we learn
@@davidluong8370 « if you don’t got any hustle, it wouldn’t matter what university you go to »
I think we’re saying the same thing. Universities don’t teach you anything. You teach yourself. I never said I went to a top tier university, but it’s the best in Ireland - Trinity College Dublin. It’s just id have learned way more in a lower tier university.
You go to higher level institutions, not to learn more, but to have a better looking CV despite learning the same amount, to network and to mature.
Best P/E ratio explanation video yet
Thank you for posting this video, but it's still clear as mud. What has always amused and amazed me are tools such as Yahoo Finance. For many stocks and mutual funds a recommendations chart is provided showing where the experts stand. There's usually 1 to 4 experts that will say "buy or strong buy", 10 to 16 "hold" and 6 to 4 "sell". After I look at all of the charts, the data, info, advice, etc., it usually comes down to my gut.
And this is exactly why you do not have anything to gain by having someone invest on your behalf at a fee. It has been proven time and time again that "experts" cannot even consistently beat the market. It is approximately a 50% chance whether they will be able to do it, and when they do it is because of luck and not their ability to do it consistently.
You are much better off investing into a few index funds in such a diversified way, which gives you exposure to capitalism's growth as a whole.
@@orestispalampougioukis6043 like which index funds are you looking at now?
@@itanimulll look at the etf vids I posted
Really great explainer this one nearly 3 years later :)
First of all you're fricken adorable which made watching this video tolerable versus other poorly explained explanations of P/E ratios from non-adorable people. Shallow, yes but I'm owing it! Since you've made P/E ratios crystal clear as one of many multiples when considering stocks, you're earned my trust and I'm now following your channel. Thanks for being adorable!
My girlfriend wants to do multiples. Now I know what she means.
can i be one of the multiples lol
Ha! 🤣
Im in! Lol
This was exactly what I needed to know at my current level as a developing investor. Can’t thank you enough for this.
Darcy Fitzpatrick glad you found it useful!
This channel is excellent, and you’d have ten times the viewership with more relevant branding. Just a free tip from me in exchange for all the ones I’ve learned from you.
Great animations, straight to the point, very informative. Keep doing what you do!
"The Flaming Bagel"💥💥💥......my favourite part of the video.
Good work Richard. I really enjoy your videos.
Useful video. Have you also done one on understanding the fundamentals you mention en passant? And I'd like to know what the story is for non-dividend stocks, eg small caps. How do you know if a non-div stock price is fair, or a south sea bubble?
It's clear that you have a good handle on this subject. It's clear that you did your homework. That's all that's clear tho. Because understanding something and being a teacher are two very different animals.
Thank you!!! I may quit eating bagel but not this channel!
Peter Griffin You’re gonna stop eating this channel
Peter Griffin 'rrrrrrrrrrrrrrroad house'
THANK YOU! I've been considering doing some investing, but I have had zero clues on how to go about it. This is helpful.
Thanks Rich every time listen to one of your podcast’s I learn a little bit. Your P/E one was very good.
I have watched three of your videos now on stock market fundamentals. Solid advice, easy to understand language, and great editing. Subbed!
Thank you!
Thanks! Do you have a video on how to in depth evaluate a company?
Most financial experts and advisors consider foreign stocks to be a healthy addition credit to an investor’s portfolio account.
Most developing stock traders tend to think in terms of how much they can earn from a trade while professional tend to think in terms of money management. Literally it is best to be an investor with an expert trading account it saves a lot in your course.
I'd be pleased with a 50% increase in my account at the end of the month. How can one certainly profit more in this business, does it mean to minimize the risk by trading with an expert advisory?
the gain in stock market, depends on the knowledge and capabilities of trader to produce consistent profits
Trading with someone experienced has changed a lot in my approach and instincts. I now see things clearly from my advisory perspective, Jim oddain uses certain trading techniques that’s proficient in his portfolio account.
Use telegram
In summary, they don’t know, we don’t know, I don’t know, you don’t know, your uncle doesn’t know, if we knew, then the analyst would be right, an analyst is always wrong, what makes you think you’ll be right, this is all based off of hopes and a little bit of historical info, hence why analyst are trending with topics like *Analyst shocked with the results of *insert company that did the opposite of what the analyst predicted* after it sky rocketed* we don’t know anything, so just pray to God you’re right and don’t over exaggerate a call or trade, bless up, keep your hopes up.
Wow no one have ever experienced pe ratio like you did thank you 👍👍👍
Hi , I am a beginner in stock market analysis and I am just covering the theoritical part right now .
Here are my questions to you-
Suppose you see a company's average p/e is 10x and its current p/e is 7x
There can be two reasons why it is what it is
1) the price of the stock decreased and the earnings per share remain the same lengths . Which is a good sign , I guess
2) the earnings per share decreased i.e the net profit of the company is on decline . Which is potentially a bad sign . But as deemed by the 2nd case in the video , i.e when potential buyers buy the stocks even more and price of it increases knowing the fact the EPS is decreasing .
These are my conclusions that are taken of the examples that plane bagle gave in the video . The two graphs shown by him mean the same two cases .
I doubt it , alot , is this how it really works?
Ok , I can now see the bigger picture , in the 2nd case , he mentions the profits being decreased but the stock price still being increased . That means the buyers see a potential in the business to grow . A bang for the buck , in a good way , should I be investing in those type of companies then? Should I follow the flow , or should I just follow my own path , own path seems more safer though .
Thanks for another great video. Is the value that's reported on earnings day an EPS value? And if so, why does it seem to be different from EPS when I compare them?
Thanks for making it clear that P/E ratios aren't everything. I'm a new investor and you explain this so well! Thanks for the vid and ez subscribe :D
Honestly I feel it goes beyond how to tell if a stock is cheap or expensive, other things come into play before placing a trade. Pattern recognition, stock picking, when to buy or sell, entry and exit points? A few must knows for every newbie before getting around to placing a trade, Don't rush the process. I started profiting from the market when I discovered a better and more effective way to trade and make money. I'll be on to seven figures by years end. Kudos
Truth be told I'm yet to find a video that breaks down the whole process to a newbies level. When I solve one challenge another pops up. What's the general solution to losses. How have you been profiting? I need a better way to trade
Through the decades stock trading has proven to be profitable to several individuals around the world
But personally you'll never understand how profitable stock trading is until you start investing in the share market
I got into the trade market with a 6k deposit, today I’ve more than 6 figures saved in just seven months.
You just have to brace yourself for this rollercoaster ride because it gets real freaky
And if you aren't properly locked in you'll fall out and incur great detriments to yourself
Lol my friends didn’t believe me either when I told them I’d began making good figures off the trade market while in retirement,they thought I did it myself but it was working with a pro risk analyst and trader Noud Mika, he trades on my behalf in the market and generates profits on my behalf his services has been gold to me.They do shout - outs about his services on MarketWatch as he also trades for newbies with difficulties generating profits themselves
Having professional minds guide you isn't much of a bad idea as I find it pleasing and intriguing,Coming from someone who has placed so many trades all gone down the drain is there anyway I could get to your trader ,or at least peruse through his bio..I'm greatly in need of help man
His mail is
@
If you look at GE, last time i checked was $9ish per share but the PE ratio was whopping nearly 400 (399.some)
So what does that mean
Hi! Would it be possible for you to do a video about the efficient market hypothesis? I’d like to know your opinion on this as it is kind of controversial. Thanks
Your channel has been an absolute lifesaver for me. I was really struggling with binary options before I found your videos, but your strategies and insights have given me a whole new level of confidence when it comes to trading. Thank you so much for all the hard work you put into your channel
The world needs a TPB/Benjamin collab on basic finance.
Great video. Stock picking is hard, which is why very few people beat the market in the long term.
Until I can pick stocks with certainty, i'll stick to passive indexes with low fees.
hey, could you give me please some example of Indexes with low fees and good returns? Tx
@@andreasmadaj1716 s&p 500?
I’m a big fan of PEG price to earnings growth and the PS ratio for growth stocks that are still in/near their infant stages. Good way to gauge relative valuation, top video mate!
I came here to learn how to value a company, but now I have even more to learn :0
7:30 scared the shit out of me, its night time when I was watching this and that noise literally made me shat my bed. Thanks :D
It's really stuff I already know but it's still very nice to have it repeated so coherently. Thanks.
I've watched this video so many times throughout the years sometimes just for entertainment.
But until just now I don't feel like I fully understood everything. Three years of compounding down the drain.
Oh well 😅
For anyone else who doesn't wanna waste their time it surely helps to have a platform where you could get reliable numbers from. Btw great video 👍
Best video I've seen on this by far!
Brilliant. By far the best video that I have seen to explain this concept. Keep up the great work and thank you!
One thing to consider is how the P can change based on how banks and funds view an industry. I can buy shares in oil-related companies in Norway for lower multiples than some years ago, since some banks and funds no longer invest in those industries.That limits the potensial upside in share price. But make it easier to get a good dividend, since I can get in at a lower price.
These videos need to be shown in public and private school systems everywhere.
I know a lot of people are scared of the market crash. Trust me it won’t last forever, we should be expecting an upsurge anytime soon. I will drop some few stocks my portfolio manager suggested i add to my portfolio…. Good luck everyone (VIAC, USMV, SQ)
I’m grateful for those picks especially USMV and VIAC which seems to be moving up for the past 3Days. I think i should buy them now. Thanks so much
Who is your Portfolio Manager, what platform does he/she use in trading?
My P.M (Mrs Lilian Wan) is an affiliate of TD Ameritrade, she uses her expertise in maximising the profits in my portfolio
I’ve lost a fortune on trading and i don’t think i can go on trading for myself. Robin hood has trusted me this past months, at this point i need professional help. I will really appreciate if you can link me up with your Portfolio Manager.
I have got SQ in my handpicked ROTH IRA, it is dropping but there’s no harm in buying when low because it won’t stay LOW forever i’m expecting upsurge soon too!
“Youre not even sure if thats beef anymore” - that made me laugh haha 😆
Buffett has said that pe ratio has nothing to do with value. Think about it.
explain
It is just one of the tools that can be used to measure a company's valuation. There are margins of safety, free cash flow, debt to equity, current ratios and a lot more. Value investing. 😍
It's to do with sentiment on future earnings based on current information. That's it, a stock with a P/E of just 3 times earnings could be very expensive if it turns out they are over optimistic and the earnings go negative. Heres a stock in the UK with a P/E of 3 www.investing.com/equities/intl-prsnl-fin ...looks cheap right?, half price to book, rising net profit, ratios all look good...except regulators might destroy their business model which is sub-prime lending. While they are earning they can pay out a 11%+ dividend...but for how long? low P/E is often as much of a gamble as very high P/E.
That's cuz of the accounting earnings, can be manipulated
Thanks good understanding of P/E I learn every time I listen to your podcast
This content is invaluable! Thank you for putting multiples and P/E into perspective!
Great video, clean animation, expertly explained. 💯
EPS(& therefore P/E) isn't my favorite metric for gauging a company. Can't stand companies slipping extra things into their reported eps to bolster the number. It's a great place to start when searching for an investment opportunity though.
Highly informational and quality video which explains very briefly, and concisely about the PE ratio and it's other prospects. I am an engineer but watching your videos made me grow interest in finance. Can you please provide resources where I can get more information about market analysis and factors?
Read finance books,
The Intelligent Investor, and Security Analysis, Ben Graham; Peter Lynch; Common Stocks, Uncommon Profits, Philip A. Fisher, etc.
I would really love it if you would start a podcast. If you were down to do something like that maybe try a poll to see if viewers are interested!
Thank you for another great video! Multiples are a concept I've had trouble with in the past, but your explanation makes it very clear.
Glad to hear that this helped!
Your ideas and strategies are always interesting and effective. Thank you for sharing your experience and knowledge with us.
Why'd you get away from this style of video? It reminds me of the old British Moneyweek videos from over a decade ago that got me interested in accounting in the first place. Some really good basic info here. P/E is one of my preferred metrics, mostly because it helps ask the right questions about a company.
I hear bagel so many times that I actually want a bagel now..
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Thanks for your excellent explanation on this matter. I look at this video many times and I start to buy stocks. Have a great day.
Didn't know Tesla was in the steak business too, till I saw their logo on the steak at 7:01!
Hirad Khakipour you have achieved comedy
So good, easy for me to understand thanks.....also fun video to watch, thanks again
As a forex trader it's almost inevitable that you're going to experience some ups and downs along the way, alertness and decisiveness are both fundamental ingre yupdients in the recipe for a successful forex trader.
Woah I found actually good investment advice on TH-cam! Subscribed!
PE ratio is like a cap rate for commercial RE it’s meaningless without context, value add, future prospects, etc
Very true!
Great videos, man! keep up the momentum. A question: is ENPH (Enphase Energy Inc) overvalued at the moment?
This sounds like a classic, being in business for 16 years, this video is about 30% accurate. I strongly advise anyone that sees this video to not just go off of this perspective without having a very good understanding of how reality in the business realm works. There is much more to be explained.
The only guy I'd buy a course from.
Haggle Bagel , Sesame Sam's LOL Those names are amazing
Learning something new in 3-4 mins 🔥🔥🔥
Its all the more important now to take charge of our own financial situation !
“we’re out of time”
dang it, youtube - let the man speak!
If a stock has a rise in its stock price but it’s fundamental financials stay the same, could that prove to be a problem due to the amount of money they’d have to pay shareholders at the inflated stock price and not having enough capital since their fundamental financials haven’t changed much?
I might be totally off base but it crossed my mind with this whole GME craze.
"Chasing low multiples without an understanding of a company's core business and future prospects may leave you with something called a value trap, a stock that looks cheap compared to its historical prices, but continues to fall even further because of the deterioration in the firm's fundamentals."
This knowledge is still very relevant to this day
Recently discovered your channel and it's epic. You're going to be huge 👍
Where else would you get good animations and good content st the same time? You are awesome!
Wonderful! every education my friend! love it !