Latest / Earn Your Leisure / Study Hall: HOW TO ANALYZE A STOCK

Transcript

Study Hall: HOW TO ANALYZE A STOCK · 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: So talk about what's the most important thing to look
• 1:03
  Speaker 3: for in looking at a company and start. I mean,
• 1:07
  Speaker 3: so anytime you analyze in the company, I look at
• 1:10
  Speaker 3: it the same way, the same way Steph Curry shoot
• 1:12
  Speaker 3: the same free throws. It's like building a repetition, right.
• 1:15
  Speaker 3: And it's like I always say, start out with a
• 1:17
  Speaker 3: holistic view. Right, holistic view, Do I like the management team?
• 1:20
  Speaker 3: Do I like how they are putting this company in
• 1:23
  Speaker 3: the right path? But then I'm like, what's the opportunity
• 1:25
  Speaker 3: set of this sector?
• 1:26
  Speaker 2: Right?
• 1:26
  Speaker 3: If we're talking about retail companies at the time, right
• 1:29
  Speaker 3: twenty twelve or even now for that matter, we understand
• 1:31
  Speaker 3: because at that time, not only was they losing out,
• 1:34
  Speaker 3: but they had price match. So like you could literally
• 1:36
  Speaker 3: go to Jake, you could go to Jcpenny or Target
• 1:39
  Speaker 3: or whatever. You'd be like, Yo, you pull up on
• 1:41
  Speaker 3: your phone, your Walmart got the same TV for one
• 1:44
  Speaker 3: hundred dollars less. They got to match it, right. Price
• 1:46
  Speaker 3: match started coming out at that and so you're looking
• 1:48
  Speaker 3: at holistic view, management team, opportunity set is this business?
• 1:52
  Speaker 3: Is it cyclical? Is it declining or is it expanding? Right,
• 1:55
  Speaker 3: So we talk about you know, electric vehicles, that business
• 1:58
  Speaker 3: is growing, Right, It's a big oportunity set and we
• 2:01
  Speaker 3: still haven't reached this full potential. So my holistic view
• 2:04
  Speaker 3: is like, is this company or one is this in
• 2:06
  Speaker 3: a sector that's growing or declining. And then is this
• 2:08
  Speaker 3: company does the how much market share do they have
• 2:10
  Speaker 3: and do they have the ability to get more or
• 2:12
  Speaker 3: do they have the ability or I'm sorry or is
• 2:14
  Speaker 3: it other companies that are actually coming in and taking
• 2:17
  Speaker 3: market share? So if you look at Apple versus BlackBerry back,
• 2:20
  Speaker 3: I remember the ticker, I think black Beerry was like
• 2:21
  Speaker 3: rim or something. And if that's the case, you looking
• 2:24
  Speaker 3: like man rim. They can't compete. Right At the one
• 2:28
  Speaker 3: time BlackBerry had you know, they had a the type
• 2:33
  Speaker 3: of software that you couldn't crack. So that was the
• 2:35
  Speaker 3: thing all Wall Street people had, they Blackberries. But then
• 2:38
  Speaker 3: Apple ended up getting the same thing. They took all
• 2:39
  Speaker 3: their market share. So you're looking at saying does this
• 2:41
  Speaker 3: company have that moat? I know shut out in he
• 2:43
  Speaker 3: say mold a lot or that do does this have
• 2:46
  Speaker 3: a moat? But also you know you're saying is their
• 2:49
  Speaker 3: business growing? Is that profitability growing? Is it more opportunity set? Right?
• 2:52
  Speaker 3: What are they saying in terms of future guidance? Are
• 2:54
  Speaker 3: they able? Is their business? You know what's the margins
• 2:57
  Speaker 3: on their products?
• 2:58
  Speaker 2: Right?
• 2:58
  Speaker 3: You look at Apple, one thing they make a lot
• 3:00
  Speaker 3: money own is their cessories, Right, Okay, phone is one thing,
• 3:02
  Speaker 3: but then it's accessory. So I always take a holistic view.
• 3:05
  Speaker 3: Also say who owns the stock? Right, I go on
• 3:07
  Speaker 3: Yahoo Finance and look at the holders, because it's important
• 3:10
  Speaker 3: to know if people smarter than you, who have a
• 3:12
  Speaker 3: dedicated research team that are following this day in and
• 3:15
  Speaker 3: day out, Like we don't have the ability to call
• 3:17
  Speaker 3: the CFO of Apple, but you know Berkshire does, Vanguard
• 3:23
  Speaker 3: does Fidelity does. I always look to see who those
• 3:25
  Speaker 3: top ten holders are. That always gives me an understanding too.
• 3:28
  Speaker 3: If people are smarter than us, then you're looking at
• 3:30
  Speaker 3: the charts, right. So I always start off fundamentals before
• 3:32
  Speaker 3: I get into the technicals. Fundamentals is everything like everything
• 3:36
  Speaker 3: we was just talking about, But the technicals is you know,
• 3:39
  Speaker 3: where's the price trading? So like fundamentals are saying why
• 3:42
  Speaker 3: I should buy this company? Right once again, opportunity said
• 3:45
  Speaker 3: is growing. Technicals is like an in shout out in
• 3:47
  Speaker 3: he always say like it's it's you know, you can
• 3:50
  Speaker 3: batter right company, but just at the wrong time. So
• 3:52
  Speaker 3: the technical is gonna say, yo, you know RSI is here.
• 3:55
  Speaker 3: You know RSI is under thirty. Now might be a
• 3:58
  Speaker 3: good time to buy it, and I think so, I
• 4:00
  Speaker 3: think anybody that's trying to say, you know, to develop
• 4:03
  Speaker 3: the repetition, it's the same way like you shot free
• 4:06
  Speaker 3: throws different than you would shoot free throws right. You
• 4:08
  Speaker 3: might dribble three times spin the ball, but you know,
• 4:10
  Speaker 3: like your end goal. And I think that's the same
• 4:12
  Speaker 3: thing when it comes to picking a company, right, it's like, okay,
• 4:15
  Speaker 3: opportunity set, holistic view. Is this company growing? Also? Are
• 4:18
  Speaker 3: they sales growing? Is their profitability? Are they able to
• 4:21
  Speaker 3: maintain margins because a lot of businesses are getting pressured
• 4:23
  Speaker 3: into margins, especially in that retail space because for the
• 4:27
  Speaker 3: most part Amazon had no overhead, where Toys r US
• 4:30
  Speaker 3: and JC Penny got none. But overhead you're looking at
• 4:32
  Speaker 3: how much their rent is, right, And so I kind
• 4:35
  Speaker 3: of look at it that way.
• 4:36
  Speaker 4: So when you obviously when you started you didn't even know,
• 4:39
  Speaker 4: like when you got to war and you said that
• 4:40
  Speaker 4: you saw somebody day traded, obviously you start working on
• 4:43
  Speaker 4: Wall Street. How fast is the learning curve?
• 4:45
  Speaker 2: Right?
• 4:45
  Speaker 4: Because if you don't learn pretty quick, you're gonna get
• 4:47
  Speaker 4: left behind in that space.
• 4:48
  Speaker 2: I'm pretty sure. Boy boy, what was that like?
• 4:51
  Speaker 3: Learning curve? Crazy? Once again, at the time, I was
• 4:56
  Speaker 3: trying to live life like TV bro. I'm trying to
• 4:58
  Speaker 3: get on the phone and talk to Van. I don't
• 5:01
  Speaker 3: like because I but I needed to know that. And
• 5:03
  Speaker 3: so what I would say the learning curve was very
• 5:05
  Speaker 3: hard because you had to It's almost like if you're
• 5:08
  Speaker 3: taking the SAT and you're doing the reading part, like
• 5:12
  Speaker 3: if you I was talking to somebody the other day
• 5:14
  Speaker 3: and they was like, Yo, I'll teach kids how to
• 5:16
  Speaker 3: do good on ACT or SAT or whatever. He's like,
• 5:18
  Speaker 3: Y're gonna read the first and the last paragraphs and
• 5:20
  Speaker 3: skim the middle right. And I say that to say,
• 5:22
  Speaker 3: like when you talk about the learning curve, when you're
• 5:24
  Speaker 3: looking at that earnings report, right, just they publish an
• 5:27
  Speaker 3: earners report, then they'll put out the ten Q in
• 5:29
  Speaker 3: ten k annually, right, but the earners report it might
• 5:32
  Speaker 3: be ten twelve pages. You got to know what to
• 5:33
  Speaker 3: look for quick as well. And so that was the
• 5:35
  Speaker 3: biggest thing on a learning on a on a learning
• 5:38
  Speaker 3: curve because it's like, what am I looking for? And
• 5:40
  Speaker 3: then it's like, Okay, what are the numbers that you know?
• 5:43
  Speaker 3: Because this is a like the models are leaving. I
• 5:45
  Speaker 3: look at it like a living, breathing organism, because once
• 5:48
  Speaker 3: you plug it in, it's gonna spit out something else
• 5:50
  Speaker 3: that's saying, these bonds is worth this, this stock is
• 5:53
  Speaker 3: worth that. And so the learning curve was hard and
• 5:56
  Speaker 3: you're sitting there right in bro Wall Street is one
• 5:58
  Speaker 3: of them things where it's a blessing to be on there,
• 6:00
  Speaker 3: but it's you know, it's very subjective, right, like the
• 6:04
  Speaker 3: only black person in there, you know what I mean?
• 6:06
  Speaker 3: If I come around, you know, make a joke or something,
• 6:10
  Speaker 3: or small earners, what's up.
• 6:12
  Speaker 4: You ever walk into a small business and everything just works, Like,
• 6:15
  Speaker 4: the checkout is fast, the receipts are digital, tipping is
• 6:19
  Speaker 4: a breeze, and you're out the door before the line
• 6:22
  Speaker 4: even builds odds are they're using Square. We love supporting
• 6:26
  Speaker 4: businesses that run on Square because it just feels seamless.
• 6:29
  Speaker 4: Whether it's a local coffee shop, a vendor at a
• 6:32
  Speaker 4: pop up market, or even one of our merch partners.
• 6:35
  Speaker 4: Square makes it easy for them to take payments, manage inventory,
• 6:39
  Speaker 4: and run their business with confidence, all from one simple system.
• 6:43
  Speaker 4: If you're a business owner or even just thinking about
• 6:46
  Speaker 4: launching something soon, Square is hands down one of the
• 6:49
  Speaker 4: best tools out there to help you start, run and grow.
• 6:53
  Speaker 4: It's not just about payments, It's about giving you time
• 6:56
  Speaker 4: back so you can focus on what matters most ready.
• 6:59
  Speaker 4: To see how Square can transform your business, visit Square
• 7:02
  Speaker 4: dot com backslash, go backslash eyl to learn more that
• 7:07
  Speaker 4: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.
• 7:12
  Speaker 4: Let's Square handle the back end so you can keep
• 7:15
  Speaker 4: pushing your vision forward. This episode is brought to you
• 7:21
  Speaker 4: by P and C Bank. A lot of people think
• 7:23
  Speaker 4: podcasts about work are boring, and sure they definitely can be,
• 7:28
  Speaker 4: but understanding of professionals routine shows us how they achieve
• 7:31
  Speaker 4: their success little by little, day after day. It's like
• 7:35
  Speaker 4: banking with P and C Bank. It might seem boring
• 7:38
  Speaker 4: to save, plan and make calculated decisions with your bank,
• 7:41
  Speaker 4: but keeping your money boring is what helps you live
• 7:44
  Speaker 4: or more happily fulfilled life. P and C Bank Brilliantly
• 7:48
  Speaker 4: Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty
• 7:53
  Speaker 4: five is a service mark of the PNC Financial Service Group, Inc.
• 7:56
  Speaker 4: P and C Bank National Association Member.
• 7:59
  Speaker 1: Fdie an illegal alien from Guatemala charged with raping a
• 8:05
  Speaker 1: child in Massachusetts. An MS thirteen gang member from Al
• 8:08
  Speaker 1: Salvador accused of murdering a Texas man of Venezuelan charged
• 8:13
  Speaker 1: with filming and selling child pornography in Michigan. These are
• 8:17
  Speaker 1: just some of the heinous migrant criminals caught because of
• 8:21
  Speaker 1: President Donald J. Trump's leadership. I'm Christy nom the United
• 8:24
  Speaker 1: States Secretary of Homeland Security. Under President Trump, attempted illegal
• 8:29
  Speaker 1: border crossings are at the lowest levels ever recorded, and
• 8:33
  Speaker 1: over one hundred thousand illegal aliens have been arrested. If
• 8:36
  Speaker 1: you are here illegally, your next you will be fine
• 8:40
  Speaker 1: nearly one thousand dollars a day, imprisoned and deported, you
• 8:44
  Speaker 1: will never return. But if you register using our CBP
• 8:48
  Speaker 1: home app and leave now, you could be allowed to
• 8:51
  Speaker 1: return legally. Do what's right. Leave now. Under President Trump,
• 8:56
  Speaker 1: America's laws, border and families.
• 8:58
  Speaker 2: Will be protected. Sponsored by the United States Department at
• 9:01
  Speaker 2: Homeland Security.
• 9:02
  Speaker 3: Allan too much, shorty, too cocky. He needs to tone
• 9:04
  Speaker 3: it down. So you know. The biggest learning curve was
• 9:07
  Speaker 3: culturally over the actual academia part of it. The academy,
• 9:11
  Speaker 3: I felt as though coming from more and I can
• 9:12
  Speaker 3: grasp anything. The biggest learning curve was learning how to
• 9:15
  Speaker 3: act right, Like I got pulled aside. I got pulled aside,
• 9:20
  Speaker 3: And anybody that's working on Wall Street, Bro, they understand
• 9:22
  Speaker 3: what I'm talking about. It's a way you got to
• 9:24
  Speaker 3: carry yourself and it's a way to dress right. At
• 9:27
  Speaker 3: one point they told me I was too flashy because
• 9:28
  Speaker 3: I got a paragam on tie on. Right. They telling
• 9:31
  Speaker 3: me I got too much swag because I walked different.
• 9:34
  Speaker 3: So and I'm a person pulled me side. Bro, you
• 9:35
  Speaker 3: gotta walk like you in a hurry. See what the
• 9:38
  Speaker 3: hell does that mean? Bro? Like you know what I mean? Like,
• 9:40
  Speaker 3: walk like you in a hurry, walk with your head down,
• 9:42
  Speaker 3: keep acting, because it's all perception, bro, perception reality. And
• 9:45
  Speaker 3: when you come from a ivy league as a black dude,
• 9:47
  Speaker 3: they already think, you know, kid thinking cocky and I
• 9:51
  Speaker 3: was swagged out. I ain't gonna hold you. But at
• 9:52
  Speaker 3: the same time they was hold They were trying to
• 9:54
  Speaker 3: hold me in the sense of like he was too cocky,
• 9:58
  Speaker 3: right he you know he and oh he's not doing
• 10:00
  Speaker 3: the grunt work. And so the biggest thing was the
• 10:02
  Speaker 3: cultural part of being in a different It's a fraternity
• 10:05
  Speaker 3: to write, these guys all play lacrosse country club, living Connecticut,
• 10:09
  Speaker 3: you feel me like Westchester and all that, yeah, role
• 10:12
  Speaker 3: and one of those people playing basketball on them desk for
• 10:14
  Speaker 3: the most part, right, it was lacrosse row you feel me,
• 10:18
  Speaker 3: field hockey, all that stuff. And it's a different culture,
• 10:21
  Speaker 3: different country club.
• 10:22
  Speaker 2: Right.
• 10:23
  Speaker 3: They got their vest song, the vineyard vine vests and
• 10:26
  Speaker 3: all that, you know what I mean. So that the
• 10:29
  Speaker 3: academia part, it was hard at first, but you understand
• 10:31
  Speaker 3: that because if you know how to study, you can
• 10:32
  Speaker 3: get that. But the cultural thing was one that was
• 10:34
  Speaker 3: very difficult. And I remember I was sitting at the
• 10:37
  Speaker 3: dinner table with you not that long ago, and we
• 10:39
  Speaker 3: was talking about, you know, a potential client, and this
• 10:42
  Speaker 3: is how we come in, right, I'm wraw right now.
• 10:44
  Speaker 3: Either you like it or you don't. But when I
• 10:46
  Speaker 3: was twenty two at the time, it was one of
• 10:48
  Speaker 3: them like I had to get down and lay down
• 10:49
  Speaker 3: or I had to really conform to that life. So
• 10:53
  Speaker 3: why'd you leave? So I ended up So when I
• 10:58
  Speaker 3: left Morgan Stanley, I ended up getting the best job
• 11:00
  Speaker 3: at a hedge fund where I was able to move
• 11:03
  Speaker 3: back to my hometown Chicago, and the reason I left was,
• 11:08
  Speaker 3: you know, I just wanted more, right. So at the
• 11:10
  Speaker 3: same time, you know I was making music, right, I
• 11:12
  Speaker 3: make music. I'm nice, Right, I need you to have
• 11:16
  Speaker 3: my vinyl back here one of these days on god
• 11:19
  Speaker 3: On want kids. We need that. But so one thing
• 11:22
  Speaker 3: I'm going to work. I have my music on the radio.
• 11:25
  Speaker 3: So I'm already feeling it. But one thing about moving
• 11:28
  Speaker 3: back to Chicago is, and I think y'all are the tests, right,
• 11:31
  Speaker 3: is when you going and you trying to do something,
• 11:34
  Speaker 3: you got laser focus, you got your horse blinders on.
• 11:37
  Speaker 3: And as a result, I really wasn't that in tune
• 11:40
  Speaker 3: with the community as much as I could have. Right
• 11:42
  Speaker 3: where at Margan Stanley show, I did some community service,
• 11:44
  Speaker 3: but like the people that I grew up with, I
• 11:45
  Speaker 3: wasn't in tune with them. But me going back to Chicago,
• 11:48
  Speaker 3: I really got to realize, like yo, when you look
• 11:51
  Speaker 3: at the wealth gap and the information gap, it really
• 11:53
  Speaker 3: boils down to the exposure gap. So what you exposed to. Right,
• 11:56
  Speaker 3: So being at Morgan Stanley, I'm walking by, I see
• 12:00
  Speaker 3: MD on the desk, right, a managing direct on the desk,
• 12:02
  Speaker 3: checking a retirement account, checking a four on one K.
• 12:05
  Speaker 3: You got two three million in there, right, most people
• 12:08
  Speaker 3: that look like us don't even got four one K's
• 12:09
  Speaker 3: the retirement plans in general, right, they holping social security still, right,
• 12:13
  Speaker 3: And so once I started understanding that and looking at
• 12:15
  Speaker 3: other people, Oh, I got an LLC for this. Oh,
• 12:17
  Speaker 3: this is the type of accounts I have for my kids,
• 12:19
  Speaker 3: I realized. One of my best friends at the crib,
• 12:22
  Speaker 3: he like, bro, you ain't really my friend, bro if
• 12:24
  Speaker 3: you ain't teaching me how to get a bag. So
• 12:27
  Speaker 3: that's what made me say, yo, I want to start
• 12:29
  Speaker 3: making content. So that's when I develop economics, which you know,
• 12:33
  Speaker 3: very similar to what y'all do, is making learning about
• 12:37
  Speaker 3: finance cool, making it more digestible so the average person
• 12:40
  Speaker 3: could understand it because we take a full step back.
• 12:43
  Speaker 3: It's like, you know, they think this is an old
• 12:45
  Speaker 3: white man's game. Historically it was, but now this stuff
• 12:49
  Speaker 3: been democratized. Right, we got podcasts about it, we got
• 12:52
  Speaker 3: social media about it. Now it's apps that allow us
• 12:55
  Speaker 3: to buy stocks for free. I remember when I got
• 12:57
  Speaker 3: e trading. Oh wait, it cost me thirteen dollars buying
• 13:00
  Speaker 3: thirteen dollars to seal. So if I'm putting one hundred
• 13:02
  Speaker 3: dollars to work, I got over. I got thirteen percent
• 13:05
  Speaker 3: and over in costs to buy that. So at that moment,
• 13:08
  Speaker 3: I'm already lost. I need to stock to go over
• 13:11
  Speaker 3: thirteen percent for me to you know what, I mean,
• 13:12
  Speaker 3: to make money. So at that moment, it's like, all right,
• 13:14
  Speaker 3: but now democratization of everything, right, Like we swimming in knowledge,
• 13:19
  Speaker 3: but we yearning for wisdom. And now it's like, how
• 13:21
  Speaker 3: do we give everybody the right wisdom? And so one
• 13:25
  Speaker 3: of the things I did was like, man, I want
• 13:26
  Speaker 3: to start putting out content right Because I went by
• 13:29
  Speaker 3: the Moniker Wall Street rapper, I was talking to somebody,
• 13:31
  Speaker 3: She's like, Okay, what the hell does Wall Street mean?
• 13:32
  Speaker 3: So it's like, let me bring main Street. Let me
• 13:34
  Speaker 3: bring Wall Street to Main Street. And so one of
• 13:36
  Speaker 3: the things I was able to do was while I
• 13:38
  Speaker 3: was working, I was always had a hustles right shout
• 13:41
  Speaker 3: of my dog Ja. We used to throw parties, we
• 13:43
  Speaker 3: had to drill. Then I also opened up a restaurant,
• 13:45
  Speaker 3: and then I had the content and I had the music.
• 13:47
  Speaker 3: So I'm like, bro. One of the things I said,
• 13:49
  Speaker 3: if I can make a fraction of what I make
• 13:52
  Speaker 3: while working on Wall Street while only dedicating call it
• 13:55
  Speaker 3: four or five hours to the side hustles. Then if
• 13:57
  Speaker 3: I gave it twenty four hours, then it's over with
• 13:59
  Speaker 3: and so I was able to leave while having other
• 14:01
  Speaker 3: investments right still trading and developmentcanomics.
• 14:12
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 14:15
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 14:19
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 14:24
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 14:28
  Speaker 1: some of the heinous migrant criminals caught because of President
• 14:31
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 14:35
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 14:40
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 14:43
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 14:47
  Speaker 1: are here illegally, your next you will be fined nearly
• 14:51
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 14:55
  Speaker 1: never return. But if you register using our CBP home
• 14:58
  Speaker 1: app and leave now, you could be allowed to return legally.
• 15:02
  Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
• 15:07
  Speaker 1: border and families will
• 15:09
  Speaker 2: Be Protected, Sponsored by the United States Department of Homeland Security,