TFI008: How to Evaluate Company Managements

The Free Investors

What are the factors we should consider when evaluating a management team? How to figure out whether the management team is shareholder friendly? These are the questions I addressed in this episode. High insider ownership Owner operated? Shareholder friendly? How do they make use of the company money? (allocate capital well?) Dividend (Return to shareholders) Stock buyback (Return to shareholders) Pay down debt (De-risk) Capex (Invest in business - … [Read more...]

TFI 007: An Overview of Economic Moat and Competitive Analysis

The Free Investors

What is the moat of a business? In this episode, we explore Business life cycle Importance of qualitative analysis 4 different types of economic moat Pricing power as a key indicator of competitive advantage Right click here to download the MP3 Book on Spotlight: The Essays of Warren Buffett: Lessons for Corporate America Action Item: Subscribe to the Podcast on iTunes or Stitcher … [Read more...]

TFI 006: How to Analyze a Company

The Free Investors

Basic framework about how to analyze a company and the four pillars of analyzing a company: A. The Business: What do they do? Segment analysis Growth prospects Revenue drivers Cost drivers Power Paradigm Reliance on major customers Reliance on major suppliers Threat of substitutes Intra Industry Inter Industry Competition Barrier to entry Competitive advantages Experience in the industry Brand: Pricing power Management team Customer … [Read more...]

TFI 005: The Two Sides of Common Investing Strategies – Part 2

The Free Investors

We continue our deep dive into common investing strategies and rules of thumb and look into the flip side of those topics. In this episode, we take the following 6 commonly cited investing strategies or rules of thumb and discuss the two sides, the positives and the negatives/risks, of each of those ideas. Contrarian Stories Acquisitive Companies Momentum Stories "Good" Companies Growth Companies Patient Long-term Investor Stories Right click here to download the MP3 Book … [Read more...]

TFI 004: The Two Sides of Common Investing Strategies – Part 1

The Free Investors

So often people talk about common investing strategies and rules of thumb without adequate discussion about the flip side of the topic. In this episode, we take the following 4 commonly cited investing strategies or rules of thumb and discuss the two sides, the positives and the negatives/risks, of each of those ideas. High Dividend Companies Stable Earning Companies Low Price to Earning Ratio Companies Low Price to Book Value Companies Right click here to download the … [Read more...]

TFI 003: 8 Cognitive Biases that Every Investor Should Know

The Free Investors

In this episode of The Free Investors Podcast, I discuss 8 common cognitive biases in the context of investing. The cognitive biases I discuss in this podcast are: Anchoring Confirmation bias Endowment effect Gambler’s fallacy Hindsight bias Loss aversion Recency bias Survivorship bias Right click here to download the MP3 Book on Spotlight: The Most Important Thing: Uncommon Sense for the Thoughtful Investor Action Item: Subscribe to the Podcast … [Read more...]

TFI 002: Basics about Investing in Stocks for Long-term, Investment vs Speculation

The Free Investors

In this episode of The Free Investors Podcast, I am excited to talk about some basic concepts as it relates to investing in stocks for long-term and much more. I talk about: Basic concepts about investing in stocks for long-term Investment vs Speculation LT investor vs ST trader Edge that regular main street investors can have over large wall street firms Right click here to download the MP3 Book on Spotlight: Buffett: The Making of an American Capitalist Action … [Read more...]

TFI 001: Introduction | What to Expect | Show Format

The Free Investors

We are ecstatic to announce the launch of The Free Investors Podcast and this is the first episode of the podcast! You can download the podcast to your computer or listen to it here on our blog. We will be submitting the podcast feed to iTunes and other podcast directories soon, so you can subscribe there as well. But, that is probably going to take a couple of days. In this episode, we introduce the idea behind this podcast, explain what to expect from the podcast, and cover other … [Read more...]

Interesting Reads: Bubbles and Investor Behavior

Here are few interesting articles that I have been reading this week: Jeremy Grantham on Bubbles: ‘I Am Sure It Will End Badly’: He predicts the bull market still has plenty of room to keep rallying, perhaps for another year or two. But another move higher will be followed by an inevitable crash, one in which pain will be felt far and wide. (WSJ) Just How Dumb Are Investors?: A new study finds that the average investor in all U.S. stock funds earned 3.7% annually over the past 30 years—a … [Read more...]

Saturday: Interesting Reads This Week

Here are few interesting articles that I have been reading this week: Robert Shiller's Nobel Knowledge: A great interview with Robert Schiller - Nobel prize winning economist. I like his answer to the question about whether individual investors should go to an investment advisor or pick stocks themselves -- "...It's like some people can play in a chess tournament really well, but I'm not recommending you go into a chess tournament if you are not trained in that, or you will … [Read more...]