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Cliff Notes: HOW TO READ STOCK FUNDAMENTALS WITH WALL STREET TRAPPER · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: We talk about like the core analysis a lot in companies.
• 1:04
  Speaker 3: But you you're you're real big on breaking companies down, right,
• 1:07
  Speaker 3: So can you just take a couple of minutes and
• 1:09
  Speaker 3: just kind of explain your process as far as and
• 1:11
  Speaker 3: shout out to my guy jose We gotta get him
• 1:13
  Speaker 3: on head the Millennial money mentor. He's a really dope
• 1:16
  Speaker 3: dud yea should follow him on Instagram and he had.
• 1:18
  Speaker 2: A dope jose Man. Yeah that's what yep, Yeah, he had.
• 1:24
  Speaker 3: A dope post. But he kind of broke down how
• 1:26
  Speaker 3: to look at the company's balance sheet. Talked about like
• 1:28
  Speaker 3: dead assets, liabilities. So can you just talk about like
• 1:32
  Speaker 3: a few things that you might look at when you're
• 1:36
  Speaker 3: evaluating a company.
• 1:38
  Speaker 4: All right, So for me, the first thing I want
• 1:41
  Speaker 4: to do is I look at the company profile. I
• 1:43
  Speaker 4: need to know everything that I can understand about that
• 1:46
  Speaker 4: business before I even look at the numbers. Because what
• 1:49
  Speaker 4: happens is we have this, we have this thing that
• 1:51
  Speaker 4: where when we see the numbers, the numbers swear us
• 1:53
  Speaker 4: one way or another. Right the numbers. We can look
• 1:56
  Speaker 4: at the numbers a little bit like oh, a million dollars,
• 1:58
  Speaker 4: a billion dollars, you go to we go to putting
• 2:01
  Speaker 4: this idea in our head already we look at the
• 2:03
  Speaker 4: stock price. The first thing we see about it is, oh,
• 2:04
  Speaker 4: I'm a way with the stock price to fall, not
• 2:07
  Speaker 4: even understanding the value of a business. So for me,
• 2:10
  Speaker 4: what's important for me is understanding not only what the
• 2:12
  Speaker 4: business is, what they do, understanding their core business and
• 2:16
  Speaker 4: their core asset.
• 2:18
  Speaker 2: The next thing is actually seeing financially.
• 2:21
  Speaker 4: How have they grown? So I'm looking for financial growth.
• 2:24
  Speaker 4: So now one of the things you're going to look
• 2:26
  Speaker 4: at is that balance sheet. Right, fundamental analysis. Right, No
• 2:30
  Speaker 4: matter what business you are, no matter where you are
• 2:32
  Speaker 4: in business, the objective of your business is to make money.
• 2:36
  Speaker 2: That's the way you can survive. Right.
• 2:37
  Speaker 4: So and looking at a company's balance sheet, we want
• 2:41
  Speaker 4: to look at the balance sheet tells us about assets
• 2:44
  Speaker 4: and liabilities that a business has. Right, So you'll see
• 2:47
  Speaker 4: four factors on it that's really important. You'll see current assets,
• 2:51
  Speaker 4: current liability. So what current assets and current liabilities mean?
• 2:55
  Speaker 4: Money that's due to the business or money that's owed
• 2:58
  Speaker 4: out to the business between now twelve months current the
• 3:01
  Speaker 4: word current right Now, When you take the current assets
• 3:05
  Speaker 4: and the current and you take the current liabilities away,
• 3:08
  Speaker 4: that give you what's called working capital.
• 3:11
  Speaker 2: Right.
• 3:12
  Speaker 4: Working capital is the money that the business has on
• 3:15
  Speaker 4: hand on deck are due to them within a twelve
• 3:18
  Speaker 4: month timespan.
• 3:19
  Speaker 2: Think about this.
• 3:21
  Speaker 4: A lot of businesses that are going bankrupt now had
• 3:25
  Speaker 4: negative working capital. Right, It's kind of like somebody telling
• 3:30
  Speaker 4: you have an emergency fund.
• 3:32
  Speaker 2: It's equivalent to that. Businesses operate the same way.
• 3:35
  Speaker 4: They have to have money that they can use in
• 3:38
  Speaker 4: case something happens within a twelve month time span.
• 3:40
  Speaker 2: They need that.
• 3:42
  Speaker 4: Then you'll have total assets total liabilities. You want that
• 3:47
  Speaker 4: to be positive. When you take all a we a
• 3:51
  Speaker 4: companies total liabilities from the total assets, you want that
• 3:56
  Speaker 4: to be positives.
• 3:57
  Speaker 2: Overall that the company is ain't good financial.
• 4:00
  Speaker 4: So also we look in that is we can go
• 4:03
  Speaker 4: to the actual income statement.
• 4:06
  Speaker 2: On that income.
• 4:06
  Speaker 4: Statement, we'll see we'll hear what's called top line and
• 4:10
  Speaker 4: bottom line group.
• 4:12
  Speaker 2: Right.
• 4:12
  Speaker 4: Top line equals the revenue that comes into a business. Right,
• 4:16
  Speaker 4: so all the money that comes in through sales is
• 4:18
  Speaker 4: called revenue. Bottom line again is the profit net gross
• 4:24
  Speaker 4: is everything net is once you take everything away, this
• 4:26
  Speaker 4: is left over, right, So what we want to look
• 4:29
  Speaker 4: at is when we're looking at the revenue, there's this
• 4:31
  Speaker 4: thing called cost of revenue.
• 4:34
  Speaker 2: So now we need to see how much did it
• 4:36
  Speaker 2: cost the business to make bring this revenue in.
• 4:41
  Speaker 4: So that's marketing, that's advertising, that's whatever they had to
• 4:44
  Speaker 4: do to bring that in. So you're gonna take that cost,
• 4:47
  Speaker 4: the revenue from the revenue, and then what's left from.
• 4:50
  Speaker 2: There, we'll see where the gross, where.
• 4:53
  Speaker 4: The net isn't there, and then we'll go to the
• 4:57
  Speaker 4: income statement, I mean the balance sheet, and we'll look
• 5:00
  Speaker 4: that the assets and liabilities and we can get into
• 5:04
  Speaker 4: cash flow statement because that's what's important to me. What's
• 5:06
  Speaker 4: important to me is cash flow. I want to also
• 5:08
  Speaker 4: see the balance sheet positive. I want work in capital
• 5:11
  Speaker 4: be the positive, but I want to see cash flow positive.
• 5:15
  Speaker 2: Cash Flow is the money that's going in and out
• 5:16
  Speaker 2: of a business.
• 5:18
  Speaker 4: We want that to be positive because if the if
• 5:21
  Speaker 4: the business is not investing money right, if the business
• 5:24
  Speaker 4: is not loaning money right, if the business isn't investing
• 5:28
  Speaker 4: shareholder capital right, there's some metrics that we look at.
• 5:32
  Speaker 2: We look at all o I S, return on invested
• 5:35
  Speaker 2: capital right.
• 5:36
  Speaker 4: Businesses are actually just like banks, right, because a business
• 5:40
  Speaker 4: is like, yo, we got all this money. We need
• 5:42
  Speaker 4: to do something with this money. So a business will
• 5:45
  Speaker 4: literally go to another business and be like, look, you
• 5:47
  Speaker 4: got one hundred and twenty billion dollars.
• 5:49
  Speaker 2: On you on your on your book.
• 5:52
  Speaker 4: That you ain't doing nothing with Instead of me getting
• 5:54
  Speaker 4: a bank loan, let me get a loan from you
• 5:57
  Speaker 4: a business like okay, cool, we'll give you that.
• 5:59
  Speaker 2: We'll give you that loan. Businesses do this all the time, right,
• 6:02
  Speaker 2: and so what.
• 6:02
  Speaker 4: Gets some business is called up and it's getting into
• 6:04
  Speaker 4: something a little different is a lot of businesses will
• 6:08
  Speaker 4: have these share buy backs. This is another thing that
• 6:10
  Speaker 4: can cause businesses to go bankrupt because what happens is
• 6:15
  Speaker 4: a share buy back is when the business takes.
• 6:18
  Speaker 2: And buy some of it shares off the market.
• 6:21
  Speaker 4: So when a business buys some of it shares off
• 6:23
  Speaker 4: the market, this increases the stock price. So one of
• 6:27
  Speaker 4: the most important things in business and investing. People always
• 6:31
  Speaker 4: say that the customer is always right.
• 6:36
  Speaker 2: You only earners. What's up?
• 6:38
  Speaker 5: You ever walk into a small business and everything just
• 6:41
  Speaker 5: works like the checkout is fast, or seats of digital
• 6:45
  Speaker 5: tipping is a breeze and you're out the door before
• 6:48
  Speaker 5: the line even builds. Odds are they're using Square. We
• 6:52
  Speaker 5: love supporting businesses that run on Square because it just
• 6:55
  Speaker 5: feels seamless, whether it's a local coffee shop, a vendor
• 6:58
  Speaker 5: at a pop up market, or even one of our
• 7:00
  Speaker 5: merch partners Square makes it easy for them to take payments,
• 7:04
  Speaker 5: manage inventory, and run their business with confidence, all from
• 7:08
  Speaker 5: one simple system. If you're a business owner or even
• 7:11
  Speaker 5: just thinking about launching something soon, Square is hands down
• 7:15
  Speaker 5: one of the best tools out there to help you start,
• 7:18
  Speaker 5: run and grow. It's not just about payments, it's about
• 7:21
  Speaker 5: giving you time back so you can focus on what
• 7:24
  Speaker 5: matters most ready. To see how Square can transform your business,
• 7:28
  Speaker 5: visit Square dot com backslash go backslash eyl to learn
• 7:32
  Speaker 5: more that Square dot com backslash, go backslash eyl. Don't wait,
• 7:38
  Speaker 5: don't hesitate. Let's Square handle the back end so you
• 7:41
  Speaker 5: can keep pushing your vision forward. This episode is brought
• 7:47
  Speaker 5: to you by P and C Bank. A lot of
• 7:49
  Speaker 5: people think podcasts about work are boring, and sure, they
• 7:53
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• 8:01
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  Speaker 5: Member FDIC.
• 8:28
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:32
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 8:36
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 8:40
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 8:44
  Speaker 1: some of the heinous migrant criminals caught because of President
• 8:48
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 8:51
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 8:56
  Speaker 1: crossings are at the lowest levels ever recorded. Over one
• 9:00
  Speaker 1: hundred thousand illegal aliens have been arrested. If you are
• 9:03
  Speaker 1: here illegally, your next you will be fine nearly one
• 9:07
  Speaker 1: thousand dollars a day, imprisoned and deported, you will never return.
• 9:12
  Speaker 1: But if you register using our CBP home app and
• 9:15
  Speaker 1: leave now, you could be allowed to return legally. Do
• 9:19
  Speaker 1: what's right. Leave now. Under President Trump, America's laws, border
• 9:24
  Speaker 1: and families will be protected.
• 9:26
  Speaker 2: Sponsored by the United States Department of Homeland Security give.
• 9:28
  Speaker 4: That term inside of a store on the management supervisor level.
• 9:35
  Speaker 4: Once you get into the investment level, the number one
• 9:38
  Speaker 4: rule is add value to shareholders. How can we add
• 9:44
  Speaker 4: value to shareholders? One of the ways we add value
• 9:47
  Speaker 4: to shareholders is by buying that shares increasing the stock price.
• 9:52
  Speaker 4: That's how we add value. Right, So now check this out.
• 9:57
  Speaker 4: You're supposed to take money that you make and have
• 10:01
  Speaker 4: it set on side for a rainy day. But instead
• 10:05
  Speaker 4: you have greedy CEOs and what they do is every
• 10:09
  Speaker 4: time they have money, they're buying back shares. They're consistently
• 10:13
  Speaker 4: buying back shares. So if you consistently buying back shares,
• 10:17
  Speaker 4: true enough, you are adding value to shareholders. But when
• 10:20
  Speaker 4: times like this, something that comes out of nowhere, now
• 10:24
  Speaker 4: your business can't float because you've now bought share buy
• 10:29
  Speaker 4: back three years in a row and you have no
• 10:33
  Speaker 4: money on the side. While you have companies like Berkshaw
• 10:36
  Speaker 4: have to weig, Microsoft, Google, Facebook. They literally have one
• 10:41
  Speaker 4: hundred billion dollars eighty billion dollars. Larn Buffet has one
• 10:45
  Speaker 4: hundred and thirty two billion dollars money sitting right there.
• 10:49
  Speaker 4: Microsoft has one hundred and forty eight billion dollars. Apple
• 10:52
  Speaker 4: has one hundred they had one hundred and ninety billion
• 10:55
  Speaker 4: dollars sitting there not doing nothing with it. These are
• 10:59
  Speaker 4: the type of big is we want to deal with.
• 11:01
  Speaker 4: So those are some things that I person to look
• 11:03
  Speaker 4: at without going too too deep.
• 11:05
  Speaker 2: It is keeping on a you know, on a level.
• 11:07
  Speaker 2: We often dissect this.
• 11:09
  Speaker 4: You want to look at working assets, I mean current assets,
• 11:12
  Speaker 4: current liabilities.
• 11:13
  Speaker 2: Take those away, you'll get working capital.
• 11:15
  Speaker 4: You want that to be positive, and then you'll have
• 11:18
  Speaker 4: total assets, total liabilities.
• 11:21
  Speaker 2: You want to take the assets from that.
• 11:22
  Speaker 4: You want that to be positive, and you want to
• 11:24
  Speaker 4: cast go from the business to be positive.
• 11:25
  Speaker 2: I hope I ain't go too deep. I try to that.
• 11:30
  Speaker 2: I just I just had one follow up.
• 11:31
  Speaker 3: So everything you said was was free jewelry. I hope
• 11:33
  Speaker 3: everybody paid attention put them put them houses up on YouTube.
• 11:40
  Speaker 2: Shot like I once again shout to my gout host.
• 11:41
  Speaker 3: He had a post and he said, like he goes
• 11:43
  Speaker 3: to Yahoo finance to find out this stuff, like do
• 11:46
  Speaker 3: you use y'aho find Like what what website do you
• 11:48
  Speaker 3: use to actually look to see information?
• 11:51
  Speaker 4: Yahoo finance is good, but out right it's it's twenty
• 11:59
  Speaker 4: twenty right now. We've into the second quarter.
• 12:03
  Speaker 2: For some businesses.
• 12:04
  Speaker 4: You'll go to Yahoo Finance and it'll still say twenty eighteen.
• 12:08
  Speaker 4: You know what I'm saying. So you can use that.
• 12:10
  Speaker 4: Somebody put it in there. You can use SEC dot
• 12:12
  Speaker 4: gov or edgar. But for me personally, I'm going straight
• 12:17
  Speaker 4: to the company website. I'm going straight to the website.
• 12:20
  Speaker 4: I'm gonna straight to the investor relations page.
• 12:21
  Speaker 2: I'm gonna talk my talk. I'm gonna see, I'm gonna
• 12:24
  Speaker 2: look at transcript. See. I'm an avid reader.
• 12:26
  Speaker 4: I'm a learning machine, right, So I would look at
• 12:29
  Speaker 4: I'll look at an SEC dot gov all day.
• 12:32
  Speaker 2: I'll look at investor relation report all day.
• 12:34
  Speaker 4: I'll look at ammal reports from four years ago, to
• 12:37
  Speaker 4: see how the revenue has consistently grown, how the income,
• 12:41
  Speaker 4: how the earnings have consistently grained.
• 12:43
  Speaker 2: As it's great as a I'll say this like as
• 12:47
  Speaker 2: a quick, as like something quick to go to.
• 12:50
  Speaker 4: But if you go there and it's twenty twenty and
• 12:52
  Speaker 4: they still got four quarter twenty eighteen, now you're gonna
• 12:56
  Speaker 4: be stuck.
• 12:57
  Speaker 2: You don't know what to go to now. So now
• 12:59
  Speaker 2: you gotta go to so again, SEC dot up.
• 13:01
  Speaker 4: And I'm gonna be real too, that site can't confuse
• 13:04
  Speaker 4: a lot of people SCC DOC. If you don't know
• 13:08
  Speaker 4: what you're going on to look for, where you get
• 13:11
  Speaker 4: lost there.
• 13:12
  Speaker 2: So the next best thing.
• 13:13
  Speaker 4: Is to just go to the investor relations phase of
• 13:15
  Speaker 4: any company, right and just and they'll tell you everything
• 13:18
  Speaker 4: you need to know there. So for me, I'll use
• 13:20
  Speaker 4: the SEC. I'll use it, I'll who finance. But it
• 13:24
  Speaker 4: ain't my goal to it ain't my goal. There's a
• 13:27
  Speaker 4: whole lot, whole lot of houses going up there.
• 13:31
  Speaker 2: Real quick, even on the back side. Like remember like
• 13:35
  Speaker 2: in the mid two thousand and early two thousands.
• 13:37
  Speaker 6: When the artists will come out and they'll be like, yo,
• 13:39
  Speaker 6: he sold six hundred thousand, and you're like, I don't
• 13:42
  Speaker 6: hear anybody playing this record though, right, it's a corporate
• 13:46
  Speaker 6: version of universal and depth sham and buying.
• 13:48
  Speaker 2: All them records facts, and like you said, when.
• 13:51
  Speaker 6: You get it now you have no real money to
• 13:53
  Speaker 6: invest into the actual business and to piggyback off what
• 13:57
  Speaker 6: Trump saying, Like when you're looking at those numbers, when
• 13:59
  Speaker 6: you go to the technical side, go look at Ford
• 14:02
  Speaker 6: and see how their balance sheet was. Ford's been in
• 14:05
  Speaker 6: trouble for a long GM been in trouble for a
• 14:10
  Speaker 6: long time, and that's why we try to keep it
• 14:12
  Speaker 6: simple with the analogies and the comparisons, like if you
• 14:16
  Speaker 6: would not want to drive a Ford or a GM,
• 14:19
  Speaker 6: then why would you want to put your money there?
• 14:21
  Speaker 6: And that's why I asked them what kind of phone
• 14:23
  Speaker 6: you have? Most people have iPhone. It's an easy way
• 14:26
  Speaker 6: to say into that. So those buybacks be careful because
• 14:29
  Speaker 6: if the company is doing well, you're going to have
• 14:32
  Speaker 6: enough institutions, hedge funds and retail investors that buy on
• 14:36
  Speaker 6: their own and they don't have the records back to
• 14:39
  Speaker 6: get these things up in the market.
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