CORRECTIONS & UPDATES: As several sharp-eyed viewers noticed, the animation on P/E around the 5:08 mark is showing a different formula from what Julia's saying. Julia is correct that you should divide the EPS into the Stock Price (Stock Price/EPS), but the animation shows dividing the EPS *BY* the Stock Price (EPS/Price). The corrected animation should've shown the formula to be Stock Price / EPS - thanks for bringing this to our attention!

That’s wild that Phillip had a mustache as a baby!

To get rich in life, you need to spend less and invest more. You don't expect to spend 90%, invest 10% and expect financial growth. there is a saying "what you eat dies but whatever you invest lives forever"

Picking individual stocks is usually too much excitement for me, I'll just stick to my "boglehead" approach of investing in diversified inexpensive index funds and que sera sera!

The main thing I tell people is to expand the date range on the graph. Most people only look at 1-3 months, change that to 5 years or max. You'll get a much better picture how it's actually doing right now.

I am an economics student at GWU and I absolutely love your videos! They explain concepts better than any of my teachers do!

Baby Philip *mustache included*, was not a mental image I was prepared for on a Wednesday. 😩

I'll just stick to a total stock market index fund :).

Low cost index funds are a recommended long term strategy. Trying to pick stocks still brings human emotions into it, and people are noticably bad at trying to time the market. #justmytwocents

Personally, I see nothing wrong with folks who want to learn about individual stock analysis, but after doing some of that myself, I came to conclude that the time spent and stomache churning from both FOMO and FUD wasn't worth it, esspecially when I can just contribute regularly to my 401K and IRAs through index funds and ETFs. I can then spend my time doing things I enjoy.

"Don't look for the needle in the haystack. Just buy the haystack!" -John C. Bogle

One thing that's important to keep in mind is share dilution. When a company releases more shares, your share becomes less valuable, because you own a smaller part of the company. Therefore, look whether they are diluting or buying back shares and add that to your consideration when considering buying.

BUILD YOUR FUTURE , SMALL STEPS, EVERYDAY SUCCESS IS A PROCESS , YOU WILL BE SUCCESSFUL!!!!

For the record, EPS and the P/E ratio are only minor parts of fundamental analysis. Frankly, they're about as basic as it gets. In my mind, fundamental analysis is really about Discounted Cash Flow (DCF) analysis. This means estimating a company's future cash flows and discounting them with an appropriate discount rate to arrive at an intrinsic look at its Enterprise Value (EV). From a company's EV, you can back into its equity value and calculate a price per share. If the market's price is below this intrinsic share price, you should buy the stock. If the market's price is above this intrinsic share price, you should sell it. That is what fundamental analysis truly is.

Been asking this question for so long. Thank you for doing videos answering the questions no one talks about 🙏🏼

Thank you for this video, I actually learned something new that I have been curious about for a while.

I like the way limitless put it. (Sure you can make a little by the number, but ultimately it is about mass psychology) A business could do very poorly, but still make big moves in the stock market as well as a good company could do poorly in the stock market. Look to where the people are thinking, and that is where the money is. Keep hustling out there! 🙆‍♂️

"Start small and do your own work to verify" best advice for new investors

You two are the best! Thank you!

I think you’re forgetting to include some important info/warning especially for a video targeted at beginners. Stocks have negative skewness, very basically meaning that most individual stocks have flat or negative returns, BUT stock returns are positive over time because a very small number of stocks have very large returns and those stock carry the majority of returns. There’s a great paper called, “Do Stocks Outperform Treasury Bills” that includes specific figures.

Long time viewer. Would be great to do a part 2 on this a dig a little deeper.

This was one of your most interesting & informative videos to date! Thank you!

Nice work giving an overview of different approaches.

At 5:01 the formula given for P/E is backwards. It should have price in the numerator and earnings in the denominator.

While the Buffet quote did have 3 "prongs", there was nothing technical about it. 2/3 Fundamental, 1/3 Qualitative

5:06 They turned it into an EP ratio instead of PE ratio.

Thank you Mr and mrs mustache guy, much appreciated 🙏

Gonna be real with yall and criticize this video for not really putting a warning out that single stock analysis and investing is mostly a futile and dangerous endeavor for the average retail investor. Not as bad as straight up gamlbing, put close enough. Long term buy hold of diverse single stock portfolios does work, but at that point you are just building an index fund with alot more trouble. There is an appeal, I get it, for the 'little man' to beat the market with math, however: 1) you are not the only one doing the math, and unless you have the infrastructure, someone is doing that math faster than you. You and your computer are not going to beat an investment bank with supercomputers and direct high speed connections specifically built for the task. Its NOT enough to discover an edge, you must exploit it before someone else does otherwise that edge is lost. 2) assuming the market is rational and will behave mathematically predictably is a very poor assumption. Math alone doesn't win poker games. THE most dangerous thing for an investor is for them to develop an ego or a sense that they "know how to time the market" or "know how to pick stock" (far better to screw up in the beginning and learn that lesson, rather than succeed a bit then fail when there are more zeros in your account). Remember, if you REALLY could do this for a living, even marginally better than the professionals or the market return, you should quit your job, do it full time, and end up rich enough to spend your days on yacht snorting blow off a hooker. Matter of fact, anyone who says they have the secret to stock market timing/stock picking... ask yourself "where is their yacht full of blow and hookers and why are they telling ME their secrets". The sad reality is most people are terrible stock pickers / traders / market timers. We talk about the mythical "7% average return inflation adjusted". That's a fantasy for undisciplined investors who succumb to thinking they know better and start trying to time/trade/pick the market. Very VERY foolish and financially devastating idea. One last antidote for the futility of trying to beat the market. Remember the guy who knew Madoff was crooked? He simply looked at his returns and discovered them to be fantastically good (about 1% a month) and concluded it was either a ponzi scheme or insider trading. www.chartr.co/newsletters/2021/4/16/mr-madoffs-marvellous-returns

This was a helpful guide thank for the knowledge.

Loved the video. Well done. Will be rewatching to take notes. I’m a individual stock type guy so the more stuff I can learn about risk management the better.

Qualitative and Essentials are good ways for me to aproach stock investing.

Thank you so much guys !!! Your the best :)

I been following you guy since the early beginning, now i save more money and have some to invest. This video also help me choose my first stock, thank you

Thank you quite easy to understand

Great to see you've been rocking the mustache since you were an infant!

I love this channel!!!!!!!

Amazing content, thanks!

You two are great! Frickin' luv ya'.

Really good episode

Interesting video! Thanks

Love you guys

Love this couple.May God bless them

1:11 and I took that personally.

Do you think you guys could do a video about health savings accounts? I think it could be a good video topic !

Really great explanation! The way I do it is a bit more complicated but it’s the same steps just more in depth.

I love this channel

i love you guys... greetings from Ph

Thumbs Up Way Up just for that RYU stage music !!!!

Good advice to do your own research, and whatever you do, don't invest based on a Motley Fool recommendation. Another thing that Warren Buffetz said is "Buy the rumor, sell the news" meaning by the time you read news about a stock, people are already selling it

I'm gonna need a link for that shirt. thank you.

I love how he was born already with his moustache

Good video

I still wonder how you manage to say "and that's our two cents" at the same time. Sounds so hard

"Stocks only represent the companys economic value, if you want the companys REAL VALUE, you look at its history!" ~ Warren Buffett.

Nice shirt and stache sir!

mutual and index funds are the way to go - you can do a few single stocks to try your luck, just put enough to where if it the stock doesn't work out it won't cripple you - i only put around 5% of my net worth in single stocks

Great Content! Keep it up!=)

6:05 this. it is much better to know and love the company's industry where they operate. For me, I have decent knowledge of semiconductor companies and their products. Loving a product also has small luck with it like those who bought Tesla shares because they like the car they bought or Apple shares because they love their iPhones. Only downside it is an emotional decision, making them it hard to sell when it is going down, missing the opportunity buy when it is low.

Good day to you More please! I’m learning with Ucademy, Pluto trading blg, Algotrader secrets blog, etc.

Love the video (all their videos!), but Philip at 5:45 suggesting DD has higher profitability than CQ because of its higher EPS is simplifying it too much because of the number of shares that each have issued. (And maybe the lower P/E was because the previous year, CQ's EPS was $2 and DD's was $6? To be fair, he did say that DD just "might" be a cheaper buy!)

This video is going to blow up!

Is there a way to do ecologic investing, can you make a video on that subject please?

Go for it 🙂

4:41 A missing letter n makes "earnings" become "earings". Now that is a huge profit!

Very surprised there was no mention of the Edgar tool D:

There is a difference between trader and investors, trader wants technical analysis and investors are fundamentalists.

personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!

Could you guys do a video about shopping online?

I would so invest in Too Scents!

I would like to see Two cents (Or Two Scents!) air freshener.

Too Scents might be better than the Febreeze Shitrus I use for the bathroom. Thanks Too Scents!

Hey! It's the CAPM !

Did the return of that stock include inflation?

Awesome

I miss 2 cents!!! Pleaaaase make an episode on Clothes shopping!!!

Why aren’t you guys 1M already!

You really called me out like that 😂, I just ask the guys over at wsb where to put my money and the apes give me suggestions

Indexed mutual funds are the way to go.

I was scrolling and i misread the title as “how to analyze a single sock”. I instantly clicked.

Wait! There is another type. An Emotionalist. And, that is me.

I just started watching your videos I’ve gained so much economic confidence thanks to you! I’ve been saving, investing and planning over the last year. However, how do we plan for something like a recession or economic crisis?? Even if I invest smart now and do everything right, what if the stock market crashes? or even something like hyperinflation? I know it sounds paranoid but what steps could I take today to remain financially sturdy during those times? I think this might make a great video topic and I would love your feedback! Thanks so much again!

These two are the high school governomics teachers we wish we had

0:40 that was nice of your grandmother.

I agree with everyone saying that it isn't a big deal. But I disagree with those saying that Paramore doesn't deserve credit. The similarities are blatant(or 'bright on the sleeve'). It's a good thing that credit was given. That said, this happens all the time in HipHop. If anything, having your sound influence others and show up in a new song years later just makes your music more iconic.

5:08 P/E = price/EPS, but it was flipped in the video

"The value of a company = the net present value of all future cashflow" This is the essence of modern value investing and this is how Warren Buffett values a company.

I like the stock.

The price of dinsey in 1984 or around there is $1,40 after all the stock splits. So that 50 shares you got in the account means that when the single share was bought. It costed $70. Therefore the return is 50 times as low. Basically it's already adjusted for so you can't just multiply it by 50. That's stupid to do

Around 3:09. I'm a bit confused. I don't think candlesticks are a type of pattern, they are a type of price chart (Line charts, bar charts, ... etc)?

shouldn't the formula for P/E = current price/earning per share?

1:37, Light Theme User Detected.

Do we save more when we buy a house or build a house?

show the actual analysis of a company income statement, balance sheet and cash flow.

Question: if you work for Company FGH, and you go on your stock trading app on your phone to buy/sell Company FGH's stock, does that qualify as insider trading?

Can you guys please do a video on crypto and your favorite projects for the long term?

Is it a good idea to take out your pension now before retirement? Just curious.

Fundamental = what stock to buy, Technical = when to buy it.

I prefer to outsource the work to acorn. They will pick the stocks for me.

Things are getting worse, it's so bad that having a job doesn't mean financial security

I wouldn't mind investing in Too Scents Inc. though. 😏