Happy Friday everyone! The first 100 people to go to www.blinkist.com/theplainbagel will get unlimited access for 1 week to try out Blinkist. You'll also get 25% off if you want the full membership.
In my opinion, you are the absolute best financial educator on UA-cam. I truly encourage you to keep up this amazing channel, and I hope for you to get more subs!
Sometimes I revisit your videos that I already watched. You cover good stuff that needs to not be forgotten. You're also a better man than most. You don't need to talk about any of my stocks to be relevant to me and offer more than anyone who does
I like to use current ratio, debt to equity and see if the free cash flow covers the long term debt. That way I can take a quick glance to see if a company's balance sheet is healthy or not.
The Icelandic Investor : Well let’s hear from others if there is anything like this compiled, cause doing it manually would be daunting task to apply quick filters for identifying likely candidates
I love your videos ! You’re a UA-cam hero compared to the so call stock gurus out there. Love how you don’t sell your videos but just deliver informative content to your viewers !
William you are one incredibly intelligent man! I’m lucky I discovered your videos here on UA-cam and I’m learning a lot from you. You define terms in plain English and you don’t act cocky or smug like others uploading videos. Thanks!
Thanks for putting this together. It’s great to know how long of a runway a company we want to own has. It’s intimidating to see a bunch off numbers in the financial statement and not know what to key in on. Great video!
Dude thanks for the content. I started following you when covid 19 started cuz i have extra $ figured it better to invest then sit on it in a bank account. Your content is priceless. Thanks.
10:04 investopedia had a slightly different formula: EBIT + Fixed cost before tax ‐----‐----------------------------------- Fixed cost before interest + interest I am now confused and I don't know who to believe. Also shouldn't it be EBIT/Fixed cost before tax? Why are we adding payments to EBIT?
Great easy to understand overview. It covers all the basis keep up good work. No investment is free from risk but it is always better to do your homework before you put a single dollar into stock market / company etc.
Excellent work man! My suggestion for a future video is "is there a performance difference between larger index funds vs smaller sector specific index funds?" For example, VUN vs VRE.
Can you do a video on how to read a financial statement? The biggest thing I get lost on is cash on hand. Trying to get a actual number seems hard to pin down
could you elaborate on where to find the "Available line of credit" in the 10K statement. (I was using the SEC EDGAR to look at Deltas 10k but could not find the available line of credit)
In their 10K for 2019, you can find the number under the "Financial Condition and Liquidity" section (there's a subsection titled "Undrawn Lines of Credit" on page 39). As of fiscal 2019 year end, Delta had $3.1 billion available in credit from its revolving facility.
i love watching your videos. Even though im already a CFA Charterholder, i love having someone more knowledgable reminding me of the fundamentals to keep my brain fresh.
Stupid question is there a way to see all this information in a non pile of papers via a massive PDF? Is there a summary of company of financials service or site?
It sure is beautiful to look at and fast to see but I don't think they are that spot on some of their data seems misleading especially their recommended values of the stock price. I gave up using them . Good if your beginning tho.
with reits look at NAV and gearing ratio. what might also be relevant is the field of real estate invesment; offices and residential probably isn't going to perform as well as commercial (think distribution warehouses/server banks) moving into the post covid environment.
A company that i had been following (but have no stocks in since I am just learning) has had their Current Assets and their Current Liabilities decreasing for the last 3 years while their Non-current Assets and Non-current Liabilities have been increasing for the last 3 years. Could you give an overview as to what this means and why would a company do this? I understand that Non-current is for the long term but would this not compromise short term operations? Would love to hear your thoughts on this.
Jireh Goh Current simply means obligations (liabilities) or an inflow of assets that are expected to affect the company within 1 year. Long-term is anything greater than a year. If you’re seeing a shift in current liabilities to long term liabilities, it could mean that they have fewer debt repayments due within the next year when compared to a greater amounts more than a year from now. Sometimes you’ll find that management - in order to free up cash for other purposes - restructures their debt so they have less due within the next year and the maturity date of the debt is pushed further into the future. Ultimately your best source for information is in the notes to the financials that are contained within their financial report.
Great video, Richard! -Richard (Ok, being serious now- I see you're in good shape with a bachelor's in finance. If I have a bachelor's in another field, what avenues could a master's in finance open for me? Thanks in advance!)
Depending on what your bachelors is in you could still find some jobs in the finance field; computer science is a particularly popular degree at finance companies. Aside from that, a masters is something that could really help you get in most finance fields: it's a popular choice for investment bankers and executives. That being said, if you're interest in analysis and portfolio management, the CFA is a good alternative to a masters. It's a lot cheaper and is a well respected designation that should open up a lot of the field to you. Hope this helps!
@@ThePlainBagel I'm a 15 year old in high school, going into college next year, I am capable of passing my series 66, 7, and SIE and love finance (specifically the stock market) I generate alpha consistently. How do I get a job/internship at my age? Can I? It seems closed off to -18 year olds
The liquidity ratios make sense but I'm always confused when I see large businesses that had carried current/quick ratios less than 1 years after years. Can an expert give some insight ?
Have a look at the cash flow statement, specifically the financing section. Usually you’ll either find them taking on more cash by way of long term debt (example, tapping into their lines of credit) or raising additional shareholder capital to pay their current liabilities. They also may defer certain current liabilities such that they become long-term liabilities. Lastly, it’s important to remember that the financials simply reflects the company’s finances at a specific given time, while the current ratio may be negative at the time of the financial report, it very well could swing to the positive a week later with an influx of additional cash or discharge of current liabilities.
Ductie94 Happy to! Otherwise have a look at their income statement to see how profitable they are. If based on their net income they’re making healthy profits, then they may choose to not keep much cash on hand (a current asset) as they are confident that they will bring in enough steady cash throughout the year to pay their current liabilities as they become due. So despite the balance sheet not reflecting enough current assets to cover current liabilities, they may be comfortably covering their current liabilities with their steady stream of revenues. Definitely more risk in doing this, but this is not atypical for a company that’s pushing growth as a priority.
CocolinoFan nothing wrong with that. Learning about stocks and the market is all about taking baby steps. The longer you do it, the more you pick up. The rabbit hole goes deep!
Ask away about any particular thing you didn't understand! Plenty of commenters here who are working in this space and already fully aware of these but enjoy the neat organised video lessons here. We all started somewhere!
I wouldn’t worry too much about all the ratios if you’re just starting out. First get an understanding at a high level on the types of typical line items you’ll see on balance sheets, income statements, and cash flow statements. Then it’s all about attrition, reading through many annual reports and the notes that accompany the reports that explain these line items. Over time by doing this you’ll get an understanding at what you’re looking at, how the three main financial statements interact, and Investopedia is a great resource for looking up what you don’t understand.
It all depends on whether consumers retail purchasing habits significantly change post-Social Distancing, and whether those consumers all choose Amazon as the retailer of choice. Amazon may have a couple of great quarters of sales, but then a couple of underperforming quarters as consumers may have a pent up desire to purchase at physical retail stores. As well, if more and more people are out of work, consumers have less money in their pocket to buy nonsense on Amazon. Time will tell on whether they will come away stronger, and this crisis may have the unintended effect of spurring more online retail competition going forward.
Can you make a video about the speculations of what will happen to the market when all of the boomers pull out their retirement money? I have heard people speculate that the same thing that happened in Japan and Europe will happen in America with our markets peaking and being unable to produce significant returns in the future. I worry that once my generation gets into the government they wont care about propping up the market like todays fed does for the boomers. Thank you for your videos!
It takes effort and time to make summaries (and write books) and those folks need to pay their fixed costs. Nothing free will ever come close to blinkist, with current technology. Maybe AI summarizers will bring the cost down.
Happy Friday everyone! The first 100 people to go to www.blinkist.com/theplainbagel will get unlimited access for 1 week to try out Blinkist. You'll also get 25% off if you want the full membership.
Blinkist has been a big part of my daily routine!!! :)
In my opinion, you are the absolute best financial educator on UA-cam. I truly encourage you to keep up this amazing channel, and I hope for you to get more subs!
Sometimes I revisit your videos that I already watched. You cover good stuff that needs to not be forgotten.
You're also a better man than most. You don't need to talk about any of my stocks to be relevant to me and offer more than anyone who does
I like to use current ratio, debt to equity and see if the free cash flow covers the long term debt. That way I can take a quick glance to see if a company's balance sheet is healthy or not.
Is there any data service which provide this dataset consolidated on periodic basis? That may help to weed out/weight average to shortlist
@@Prasad_California I'm not sure, I just look at the balance sheet and the cash flow statement.
The Icelandic Investor : Well let’s hear from others if there is anything like this compiled, cause doing it manually would be daunting task to apply quick filters for identifying likely candidates
@@Prasad_California don't be a lazy bum. There's your filter
Make a video analyzing a 10-K or 10-Q !!
Yes id love that, 8-K too JAJAJA!
Been a subscriber since you had 8k subs - real quality vids all the way!
Randeep loyal! I’ll take some of that, but you’ll be before I hit 150!😂
I love your videos ! You’re a UA-cam hero compared to the so call stock gurus out there. Love how you don’t sell your videos but just deliver informative content to your viewers !
Congrats on your 69th video
aayooooo
heheheh you said 69 :)
William you are one incredibly intelligent man! I’m lucky I discovered your videos here on UA-cam and I’m learning a lot from you. You define terms in plain English and you don’t act cocky or smug like others uploading videos. Thanks!
Thanks for putting this together. It’s great to know how long of a runway a company we want to own has. It’s intimidating to see a bunch off numbers in the financial statement and not know what to key in on. Great video!
Thank you for all your videos! I have seen them all and you've made me a wiser, more rational (and less emotional) investor! Don't stop creating.
Dude thanks for the content. I started following you when covid 19 started cuz i have extra $ figured it better to invest then sit on it in a bank account. Your content is priceless. Thanks.
you can donate it to me, I know how to compound it daily ;)
@@Xanderboof suuurreee
Awesome video Bagel! Love how technical your videos are
Your channel is awesome, please keep up the work!
10:04 investopedia had a slightly different formula:
EBIT + Fixed cost before tax
‐----‐-----------------------------------
Fixed cost before interest + interest
I am now confused and I don't know who to believe.
Also shouldn't it be EBIT/Fixed cost before tax?
Why are we adding payments to EBIT?
Tesla Stock Is Overvalued, IMO 😆
Honestly
Musk thinks so also :-)
How much for anime Bitcoin?
Yes it is
He probably said it to devalue the Tesla stock and by it back :p I assume that's the reason
*Thanks for sharing your thoughts on this!* 👍
This is such an informational video for how short it is! Great video.
Great easy to understand overview. It covers all the basis keep up good work. No investment is free from risk but it is always better to do your homework before you put a single dollar into stock market / company etc.
:@The Plain Bagel can you do analyses of TLRD (tailord brands) and walk us tru the 10-k. Thanks and amazing job!
Excellent video.
Simply excellent.
Excellent work man! My suggestion for a future video is "is there a performance difference between larger index funds vs smaller sector specific index funds?" For example, VUN vs VRE.
Can you do a video on how to read a financial statement? The biggest thing I get lost on is cash on hand. Trying to get a actual number seems hard to pin down
could you elaborate on where to find the "Available line of credit" in the 10K statement. (I was using the SEC EDGAR to look at Deltas 10k but could not find the available line of credit)
In their 10K for 2019, you can find the number under the "Financial Condition and Liquidity" section (there's a subsection titled "Undrawn Lines of Credit" on page 39). As of fiscal 2019 year end, Delta had $3.1 billion available in credit from its revolving facility.
@@ThePlainBagel yup found it, thank you so much :)
i love watching your videos. Even though im already a CFA Charterholder, i love having someone more knowledgable reminding me of the fundamentals to keep my brain fresh.
You just wanted to say you have a CFA 😂😂😂. Jk I have my level 2 next year good job on getting it
Thanks for the video! Some very good information.
So... you're saying I should put everything I have in Tesla?
Lol
Well if you did, you made a lot of money...
Thanks for sharing your knowledge, greetings from Peru
Thank you Richard
clear and to the point, thanks!
Awesome video. Thank you.
Great video thank you!
I really enjoy your videos.
Love your Videos!
Any quick reference guides for the formulas and how to use them on the balance sheets
Subbed. Excellent channel 👌
Covenants is a great tip!
Stupid question is there a way to see all this information in a non pile of papers via a massive PDF? Is there a summary of company of financials service or site?
Good video Plain Bagel
*drops by 25%*
guess it's time to buy.
Is there a central place to look up public company filings and earnings?
Yes! In the U.S. it's EDGAR, in Canada it's SEDAR. They aren't very user friendly but that's where the government puts all public filings.
Can you do an example analysis of a company. Let's pick SQ or any other company of your choice.
Emergency! Fed rates just went negative today. Can you make a quick video on the effects? What to expect tomorrow?
I like how Simply Wall st condenses all the data and makes it easy to look it. Anyone else uses it or have an opinion on it?
It sure is beautiful to look at and fast to see but I don't think they are that spot on some of their data seems misleading especially their recommended values of the stock price. I gave up using them . Good if your beginning tho.
Great informative video
How about ETFS or REITS?
with reits look at NAV and gearing ratio. what might also be relevant is the field of real estate invesment; offices and residential probably isn't going to perform as well as commercial (think distribution warehouses/server banks) moving into the post covid environment.
If i could listen to you daily id be happy with life
How do find a company's covenants?
The video is a gold mine, specially for some one that is new in the market and trying to learn ASAP. Thank you!
Me on Apartment Reits,Utilities, and Non-Cyclical
Love me some stable dividends
A company that i had been following (but have no stocks in since I am just learning) has had their Current Assets and their Current Liabilities decreasing for the last 3 years while their Non-current Assets and Non-current Liabilities have been increasing for the last 3 years. Could you give an overview as to what this means and why would a company do this? I understand that Non-current is for the long term but would this not compromise short term operations? Would love to hear your thoughts on this.
Jireh Goh Current simply means obligations (liabilities) or an inflow of assets that are expected to affect the company within 1 year. Long-term is anything greater than a year. If you’re seeing a shift in current liabilities to long term liabilities, it could mean that they have fewer debt repayments due within the next year when compared to a greater amounts more than a year from now. Sometimes you’ll find that management - in order to free up cash for other purposes - restructures their debt so they have less due within the next year and the maturity date of the debt is pushed further into the future. Ultimately your best source for information is in the notes to the financials that are contained within their financial report.
money is free, balancesheets don't matter (ie. amazon, aapl, etc..)
How do you edit your videos? c:
Adobe premiere pro :)
Have you heard of the Australian professor Steve Keen and how do his views fit in your perspective if at all.
Hi my friend,
Could you make a video on "What if the entire world follows the same currency?"
That would be horrible as corrupt countries would print infinite money...
RanEncounter lol
Great video, Richard! -Richard
(Ok, being serious now- I see you're in good shape with a bachelor's in finance. If I have a bachelor's in another field, what avenues could a master's in finance open for me? Thanks in advance!)
Depending on what your bachelors is in you could still find some jobs in the finance field; computer science is a particularly popular degree at finance companies. Aside from that, a masters is something that could really help you get in most finance fields: it's a popular choice for investment bankers and executives. That being said, if you're interest in analysis and portfolio management, the CFA is a good alternative to a masters. It's a lot cheaper and is a well respected designation that should open up a lot of the field to you.
Hope this helps!
@@ThePlainBagel I'm a 15 year old in high school, going into college next year, I am capable of passing my series 66, 7, and SIE and love finance (specifically the stock market)
I generate alpha consistently. How do I get a job/internship at my age? Can I? It seems closed off to -18 year olds
The liquidity ratios make sense but I'm always confused when I see large businesses that had carried current/quick ratios less than 1 years after years. Can an expert give some insight ?
Have a look at the cash flow statement, specifically the financing section. Usually you’ll either find them taking on more cash by way of long term debt (example, tapping into their lines of credit) or raising additional shareholder capital to pay their current liabilities. They also may defer certain current liabilities such that they become long-term liabilities. Lastly, it’s important to remember that the financials simply reflects the company’s finances at a specific given time, while the current ratio may be negative at the time of the financial report, it very well could swing to the positive a week later with an influx of additional cash or discharge of current liabilities.
@@akaman85 That makes a lot of sense. Thanks for the insight !
Ductie94 Happy to! Otherwise have a look at their income statement to see how profitable they are. If based on their net income they’re making healthy profits, then they may choose to not keep much cash on hand (a current asset) as they are confident that they will bring in enough steady cash throughout the year to pay their current liabilities as they become due. So despite the balance sheet not reflecting enough current assets to cover current liabilities, they may be comfortably covering their current liabilities with their steady stream of revenues. Definitely more risk in doing this, but this is not atypical for a company that’s pushing growth as a priority.
Is there some site to quickly check on those stats at first glance which also highlights critical stats?
Your channel is cool
Misspell at the end of section one. Statemennt
A fortress balance sheet the likes of goog,fb and apple.
Hey guys anyone got any good value stocks to add to my watch list ??
This video kinda went over my head.
CocolinoFan nothing wrong with that. Learning about stocks and the market is all about taking baby steps. The longer you do it, the more you pick up. The rabbit hole goes deep!
Ask away about any particular thing you didn't understand! Plenty of commenters here who are working in this space and already fully aware of these but enjoy the neat organised video lessons here. We all started somewhere!
I wouldn’t worry too much about all the ratios if you’re just starting out. First get an understanding at a high level on the types of typical line items you’ll see on balance sheets, income statements, and cash flow statements. Then it’s all about attrition, reading through many annual reports and the notes that accompany the reports that explain these line items. Over time by doing this you’ll get an understanding at what you’re looking at, how the three main financial statements interact, and Investopedia is a great resource for looking up what you don’t understand.
who else think Amazon might be the biggest winner out of this crisis?
It all depends on whether consumers retail purchasing habits significantly change post-Social Distancing, and whether those consumers all choose Amazon as the retailer of choice. Amazon may have a couple of great quarters of sales, but then a couple of underperforming quarters as consumers may have a pent up desire to purchase at physical retail stores. As well, if more and more people are out of work, consumers have less money in their pocket to buy nonsense on Amazon. Time will tell on whether they will come away stronger, and this crisis may have the unintended effect of spurring more online retail competition going forward.
Trading at 100 times earnings is a risky stock
Now show us where to find that info.
I wonder why people don't just ditch their stocks when they start falling and pick back up if they begin to rise?
Bankruptcy is a powerful tool. If used properly.
Dangg is it just me or do you actually look like Nix from Cambridge Analytica
Can you make a video about the speculations of what will happen to the market when all of the boomers pull out their retirement money? I have heard people speculate that the same thing that happened in Japan and Europe will happen in America with our markets peaking and being unable to produce significant returns in the future. I worry that once my generation gets into the government they wont care about propping up the market like todays fed does for the boomers. Thank you for your videos!
If it's stock price approaches zero it's not looking good
This video is pure alpha
Nice vieo, however, should be better if you use a real company numbers like an example.
Would you like to know investing boy
Crypto has made me numb to drops of 40%. Bring it on stock market.
🙂
Just buy tsla
I disagree. People should buy ETFs during a downturn. That is the maximum diversification anyone can get.
Can you do this same type of explanation but for ETFs/Mutual Funds which are 100's or 1000's of companies?
Anyone knows any free app like Blinkist to listen to a summary of books?
It takes effort and time to make summaries (and write books) and those folks need to pay their fixed costs. Nothing free will ever come close to blinkist, with current technology. Maybe AI summarizers will bring the cost down.
I make shitty stock market videos ppl (audio gets better I promise) ps: ily plain bagel
first
Who gives a fuck
long term investment is a short term investment that failed
You say you should look at bla bla bla but you dont show example how to interpret those numbers.
It varies with industry, it only generalizes between similar businesses
Fantastic info, thank you.