concise highlights that all make so much sense and are also act as a quick checklist of things to check when trying to understand how a business is performing 👍🏽
Great video! I only disagree with the dilution, if the company diluted you 50% but its net income grew 200% in an organic basis, maybe they only need capital in capex because they see opportunities to grow
Hi brian. Thank you for these beneficial vids. Im an engineer myself who has passion for smart investing I finished a few books & started in 2020. Still holding 25 wonderful companies & 3 ETFs My account performance is nearly 40%. However i like to widen my circle of competence into financial sector. Banks & insurance. Their fundamental analysis differs from normal sectors. Please make a vid on spotting red flags 🚩 for these companies. Also does your book cover these companies?
I saw one of your video and you were saying that negative retained earnings was bad. SBUX and DPZ have negative retained earnings. How bad and how important is that metric for us shareholders? Thank you
Yeah… this is why there’s so much nuance with accounting. It depends on WHY there are negative retained earnings. If it’s because the business struggles to make a profit, that’s a bad sign. If it’s because the company has bought back tremendous amounts of stock for years, thats a good sign. For Starbucks, Domino’s, and Lowe’s, retained earnings is negative for a good reason. But as a generic statement, it’s not a good sign if you see negative retained earnings.
@@BrianFeroldiYT Thank you for your reply. So buying back shares is lowering retained earnings figures? Is it because they are doing it while having lots of debt? Can you please explain it with SBUX? I sold it when I saw negative earnings but I still like the business model and MOAT Thank you for your help
This is all true but you can really miss out on some big opportunities by taking the time to look into why these red flags are occuring. For example: Chipotle when revenue dropped from 2015-2016 out of an ecoli fear. More recently, Target in the low 100's when everyone was so fearful about their margins being unable to turn around due to a temporary over inventory/shrink problem.
Thank you for this channel.
Thanks for watching & the good vibes
This video helps me understand better. Thank you
Glad it helped!
Thanks for your good education videos 🎉🎉🎉😊
Glad you like them!
Very good red flags to look for. Now, I can't wait to see your red flags for the Balance sheet and Cash flow statement. Thank you for sharing.
Coming soon!
Thanks again for this great video
Glad you enjoyed it
concise highlights that all make so much sense and are also act as a quick checklist of things to check when trying to understand how a business is performing 👍🏽
Glad it was useful
Excellent video Brian. Thank you so much for this.
Its invaluable information borne of experience. Love it 👍
Fantastic information! I will have to add a few new variables to my screener. Thank you!
Glad it was useful!
Thank you Brian.
Welcome!
I am a new investor .. what is the website you are using ? for analyzing ?
finchat.io/brian
Good information
Glad it was useful
Great video! I only disagree with the dilution, if the company diluted you 50% but its net income grew 200% in an organic basis, maybe they only need capital in capex because they see opportunities to grow
Sure… there are exceptions
@@BrianFeroldiYTspecialy NBFC AND BANKS
great video. please tlt stock how it works thanks for sharing your knowledge
Hi brian. Thank you for these beneficial vids.
Im an engineer myself who has passion for smart investing I finished a few books & started in 2020. Still holding 25 wonderful companies & 3 ETFs
My account performance is nearly 40%.
However i like to widen my circle of competence into financial sector. Banks & insurance.
Their fundamental analysis differs from normal sectors.
Please make a vid on spotting red flags 🚩 for these companies.
Also does your book cover these companies?
Short all these? Got it!
I saw one of your video and you were saying that negative retained earnings was bad. SBUX and DPZ have negative retained earnings.
How bad and how important is that metric for us shareholders?
Thank you
LOW also has been in negative territory in the last few years...
Yeah… this is why there’s so much nuance with accounting. It depends on WHY there are negative retained earnings. If it’s because the business struggles to make a profit, that’s a bad sign. If it’s because the company has bought back tremendous amounts of stock for years, thats a good sign. For Starbucks, Domino’s, and Lowe’s, retained earnings is negative for a good reason. But as a generic statement, it’s not a good sign if you see negative retained earnings.
@@BrianFeroldiYT Thank you for your reply. So buying back shares is lowering retained earnings figures?
Is it because they are doing it while having lots of debt?
Can you please explain it with SBUX? I sold it when I saw negative earnings but I still like the business model and MOAT
Thank you for your help
This is all true but you can really miss out on some big opportunities by taking the time to look into why these red flags are occuring. For example: Chipotle when revenue dropped from 2015-2016 out of an ecoli fear. More recently, Target in the low 100's when everyone was so fearful about their margins being unable to turn around due to a temporary over inventory/shrink problem.
Sure…still important to know how to analyze an income statement