Mastering Stock Market Investing | Consistently Profitable | David Eaves | Skillshare

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Mastering Stock Market Investing | Consistently Profitable

teacher avatar David Eaves, YouTube, Trading/ Investing, etc.

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

21 Lessons (1h 27m)
    • 1. Introduction

    • 2. What The Stock Market Is

    • 3. What is a Broker and Why You Need One

    • 4. Why Companies Go Public

    • 5. The Power of Compound Interest

    • 6. What are ETFs and Index Funds Part 1

    • 7. What Are ETFs and Index Funds Part 2

    • 8. How to Find Stocks

    • 9. What Stocks and ETF's to Trade

    • 10. Time in The Market vs Timing The Market

    • 11. Analyzing Balance Sheets

    • 12. Beta Ratios and Risk

    • 13. Question Marks, Stars, Cash Cows

    • 14. Dividend Payout Ratios

    • 15. Earnings Reports

    • 16. Rules of Thumb for Age Groups and Retirement Accounts

    • 17. Taxes and DRIPS

    • 18. Don't Get Scared

    • 19. Personal Debt and Investing

    • 20. Class Project

    • 21. Thank You!

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About This Class

In this course, I wanted to provide all the knowledge I have learned over the last ~4 years of investing and learning about companies and a basic level of how I identify value in a stock. Generally, I use a mix of technical and fundamental principles. I wanted to teach more of the fundamental aspects as I taught many of the technicals in my Mastering Day Trading course. Below I have placed all of the useful graphics within the course. If you have any questions feel free to reach out as I want to help as many of you as possible succeed.




Meet Your Teacher

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David Eaves

YouTube, Trading/ Investing, etc.


I've been creating content on YouTube for around 5 years now as well as actively investing and trading in the stock market. I've been creating content here on Skillshare for a little over a year as I think it's a great platform for my audience on YouTube to get more in-depth content as well as anyone else who is interested. Unfortunately, you do need a Skillshare Premium account in order to view them. 


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1. Introduction: welcome everyone to the mastering stock market investing course. By the end of this course, you should have a proficient level of knowledge for the sake of personal investing. Obviously, you're not gonna be a financial adviser by the end of the course or the next CEO of Goldman Sachs. That be a little ridiculous, But you should have a very proficient level of knowledge when it comes down to making investing decisions within the stock market for personal sake, if you guys don't know who I am. My name is David Eves. I run a personal finance based channel over on YouTube where I pretty much have at least one video per week about current events in the stock market or anything really to do with personal finance. If you guys want to check that out, feel free to do so. The link is in my bio, but with all that aside, let's go ahead and get into the first lesson of the course. 2. What The Stock Market Is: So in the first lesson, we're gonna talk about what the stock market is, and it's actually pretty simple. It's a market made up of multiple exchanges, where people go to buy and sell stock and other securities within companies or based around companies, and pretty much every developed country has one. But for the purpose of this video, we're gonna be focusing on the United States. So there is no one stock market per se. But there is quite a few exchanges that all kind of make up the term stock market. The two largest of these exchanges are the New York Stock Exchange and the NASDAQ. If you guys ever really watched the news, you've probably heard of these. But there are also dozens of smaller exchanges. But for the most part due to technology, you're not really gonna notice the difference between the New York Stock Exchange, the NASDAQ or you know any of those other smaller exchanges in these exchanges, their actual physical places within a lot of times, New York or other large cities throughout the country. But obviously, if you're a regular person and you want to go buy stock, you can't just walk onto the floor of the New York Stock Exchange and start purchasing shares right pretty much all of these exchanges. They're going to require you to be a member, which cost a large amount of money as well as there's a lot of regulation around being a member and how these firms are regulated. And that's exactly why you'll need a broker, and that's what we're gonna be talking about in the next lesson. 3. What is a Broker and Why You Need One: So what is a broker? If you watch sporting events like the NFL or sometimes MBA, you guys will probably have seen ads from one of my favorite brokers, and that is TD Ameritrade. Now. You also probably in and out from E trade. I know they also sponsor a lot of NFL events, but TD Ameritrade is really my favorite broker. However, there are tons of other options out there like we Bull, Robin Hood, Charles Schwab and so on. But in order to be a broker, they have to actually become a member of each exchange. But in order to become a member, they have to pay large membership fee as well as deal with all the regulation around stock exchanges. But they do all of this that way. They can provide services to customers in the form of buying and selling shares and really holding money for those customers. Up until recently, pretty much every broker charge their customers a fee in order to send shares to the market or buy shares from the market. However, over the last 20 to 30 years, commissions have become a much smaller percentage of brokers. Actual earnings in the case of Charles Schwab commissions counted for less than 10% of their actual revenue. Most of the revenue came from the UN invested cash that their customers had in their account that they would basically earn interest on. And they usually paid out very, very, very little interest to the investor, thereby netting the difference. And that's really what spawned Robin Hood there. Free brokerage. That doesn't charge you any fees to buy and sell stock, but they do make interest on your UN invested cash. And just recently, in late 2000 and 19 most of the large brokers like TD Ameritrade, Charles Schwab, E Trade Interactive Brokers all of these companies actually reduced their commissions to $0 in order to compete with Robin Hood. So now, as of recently, free has pretty much become the standard across the stock market. It doesn't really cost anything in order to buy and sell shares, and the brokers pretty much make most of their money from the UN invested cash that you have sitting in your account. However, there is another way they make money and we'll go over that in the bonus section of this course at the end But the real take away here is that brokers are the direct link to the stock market. And if you're an individual investor, you're gonna need a broker of some kind in order to buy and sell shares on the stock marke . 4. Why Companies Go Public: But at this point, you might be wondering, Why do companies go public? And it really depends. It's different for every single company. But when we're talking about startups like maybe Tesla or Facebook or one of these companies, if we look at a lot of the hot tech stocks, like maybe Snapchat, they went public recently about 2 to 3 years ago. The reason they went public is they needed a few $1,000,000,000 to continue operating their business since they were operating at a loss. And it's very hard to get billions of dollars from the private market. The private market is basically where you go pitch, you know, John on investing in your company or John's Hedge Fund or Johns Private Equity Fund. Eventually, when you get too big, like Snapchat or uber or Facebook, the private market doesn't really have enough money to give you, at which point you can take the company public and collect money from outside investors. I e. Me, you, John, your neighbor. You know, everyday people who decide to invest in this company because they see value another reason companies go public. In the case of maybe Macy's. Maybe they've always made money. They were making money when they went public back in the day. But the reason they went public was so that John the founder, maybe he wants to sell 20% of his Macy steak. He could actually just go to the public market and sell those shares right there, rather than having to find someone who would be willing to take 20% of his steaks that don't violate any kind of company agreements or anything like that. So eventually, when a company makes a lot of money, it eventually becomes necessary for the founders in the investors to pull their money back out of the company. And going public allows them to do that when you are operating at such a large scale, like maybe Macy's or Walmart er, one of these huge companies. So the main take away here is that companies generally will go public in order to give an exit strategy for investors or to raise money form or investors. That way, they can continue to operate in the case of Snapchat or Facebook or one of these companies 5. The Power of Compound Interest: This generally applies to pretty much any other type of investing as well. In that is compound interest. This is your friend when it comes down to investing, and what this is is essentially, If you invest $1000 this year and you make 10% on it, you now have $1100. Right now, let's say you keep all that money in your account, and then you invest another $1000 next year. Now your balance is $2100. However, if you make 10% this year, you've not only made the 10% on what you've contributed the whole $2000 but you've also made it on your earnings of $100 from last year, meaning that now you have an investment of $2000 in your account. Value is $2210. That $10 represents compound investing in over a 10 or 15 year period. Compound interest contributes a ton to your actual return. If you look in these pictures, we're going to see the value of $1000 invested monthly every single year, and you're going to see that after 22 or so years. You've got a $1,000,000. However, you've only invested about 1/4 $1,000,000. Part of that has to do with the simple interest. But a huge portion of this is your compound interest because it allows your money to grow at an exponential rate. So that's all I've got for this video. I really just wanted to point out the value of compound interest and just how important it is and why. When it comes down to investing, compound interest is pretty much everything, and it's what makes investing so powerful. And when it comes down to the stock market, compound interest is very important. Obviously, if you're investing in real estate or something like that, it might take five years for you to go ahead and reinvest your actual earnings to buy, say, a second property or something like that. But when it comes down to the stock market, your earnings are often times gonna be automatically compound it just because of the value of a stock. But any dividends that you get could also be rolled back into that stock. Or you could use those dividends to buy a different stock or different fund to compound interest is absolutely your friend, and it's really where a lot of the value of investing in the stock market comes from. So with all that being said, I will get you guys in the next video. 6. What are ETFs and Index Funds Part 1 : Now I get this question quite a bit. What's an E T F? What's an index fund? What? What are these things? So une TF is an exchange traded fund? What that basically means is it's a fund made up of a lot of shares of a lot of different companies that all trade together. So you buy one share of this and you'll have a small piece of a rise in a small piece of Walmart, a small piece of 18 tee, a small piece of waste management and so on for whatever positions are held within that E t f generally e T F two designed to spread risk across a specific section of the market. So sometimes you might find a health care e t f. This is going to invest in, you know, maybe the 10 largest healthcare companies. But they're all gonna be healthcare company, so you're highly exposed to healthcare itself. But you're also diversified when it comes to the actual amount of health care companies that you own. Or maybe they're a tech e t f where they're gonna hold Facebook, Google, Amazon, Microsoft and so on. You know, these are gonna be highly exposed to technology. But you can actually buy one share of this CTF and you're gonna get exposure to all of these different companies on index fund, on the other hand, is pretty much the exact same thing as an E T f. Except for it's gonna track an index. So something like the S and P 500 of the Russell 2000 or the Dow Jones these air funds that are going to track those because the actual S and P 500 you can't directly invest in it's just an index. It just tracks the prices of these companies you know you can actually buy in S and P 500 chair. In order to do that, you would need to buy an index fund for the S and P 500 like maybe sp y or bang guards. Vo these air what you would actually invest in if you wanted to have exposure to the S and P 500 as a whole or the Dow Jones as a whole. But you can't directly just go by the Dow or just go by the S and P. You have to buy an E T f like S P Y or something like that that basically tracks the S and P 500. Exactly. But you're not directly investing in it because it is just a benchmark or, you know, just a tracker. Really, it's not an actual asset. Where's the TFC are an actual asset? 7. What Are ETFs and Index Funds Part 2: So in the case of the SP Y, this is one of the highest traded E t. F on the market. This is actually mimicking the S and P 500. So here we are on the website for the S P Y e T f. And this kind of gives us a lot of information about the F and the things that are under management and so on. So this is essentially going to give us a lot of info about the fun. But I wanted to go and start down here, so this is basically gonna tell us what the fund holdings are. So obviously we have Microsoft here at the top in an apple Amazon Facebook on all the way down. And as I said, this is mimicking the S and P 500. And if we look over here, they conveniently provide us with the holdings of the S and P 500. And you know, the waiting that these companies contribute to the S and P 500. So you know, the actual index that this is tracking has the current weights, and then this is the weights of the E T. F. So this will give you an idea of how closely it's gonna track the index. In this case, this is very close. If you look pretty much, all of these numbers are the exact same. The only exception to that being Amazon at 3.3% waiting and the, uh, actual index having 3.29%. But for the most part, it's pretty much gonna be the exact same. Now, these are also just the top 10 holdings. In most cases, that's what's gonna be listed. And that's what's gonna be easy to find. You can, of course, download some data. I'm not exactly sure where it is, but that will tell you mawr of, ah, you know what's being waited into the, um, actually TF. But if you go down here, they go and give us sector weightings. So, you know, 24.43% 24.42%. So you know, this is very close. You know, it looks like there are little often financials there, a little bit heavier, and then they're probably lower in some other sectors. So if you look down here, let's see if we can find anything so they're higher in real estate by 0.1 but they're lower in utilities and let's see, that's the only discrepancy. I see there are a little lower in communications services as well. So, you know, they're a little bit higher in some sections, a little bit lower in other sections, but for the most part, they're pretty much gonna be the exact same is the index. So obviously some e t s will not track an exact index. They're gonna be, you know, maybe tracking the index, but also have another goal associated with them. So in the case of SPL V, that is he ticker symbol for any TF. I'm not gonna pull anything up here, but you're gonna notice that in that it's actually low volatility. So that one actually tracks the top 100 lowest volatility stocks within the S and P 500. So it's not gonna track the S and P 500. Exactly. It's gonna have the 100 lowest volatile stocks in it, rather than you know the exact stocks that are in the fund. And there's other types of E t f. There's dividend et efs. These are essentially gonna have some of the highest dividend payers or some of the best dividend payers that are within the S and P 500. Or maybe the Dow Jones or things like that, you know? So there's a lot of E. T s out there. A lot of them have different aspects. You can get internationally ts you can get the M g C. That is the Vanguard Mega cap E T F. That's pretty much gonna have every single thing possible in it. You know, there's video, which is the Vanguard version of the S P Y, um, things like that. So when it comes down to a long term investing, while this course is not really based on long term investing, I do want to go ahead and mention this because it is some useful information. If you are very new when it comes to funds, you know, premium discount. That means there's a discount on this. So this is actually trading at lower than what the core value of the fund is. So you're kind of getting 0.175% in free money on this now and other times this will actually trade at a premium. So it's actually trading at a little bit higher than the actual asset holdings. So you know that can happen is a slight discrepancy because it is a traded fund rather than just an exact index. But generally speaking, that's not gonna be something going to worry about too much. Obviously, it would be better to buy something at a discount rather than a premium. But you're talking about a very little amount of money, so it's not a big deal. But what's really important here is to go ahead and look at the expense ratio. If you are long term investing, you're gonna want to pay attention to the expense ratio. And generally speaking, you know, there's a lot of companies that offer an S and P 500 track E T. F. For the most part, it's not gonna matter. You're really just gonna want the expense ratio that has the lowest. So in this case, I believe the VT I or V 00 B t eyes the Vanguard Total Stock Market Index that's essentially gonna have a little bit more than just the S and P 500 and then v 00 from Vanguard is pretty much gonna be The exact same thing is SP Why here, except in the fact that Vanguard's expense ratio is a little bit lower. So here we are on bank guards site there. The management for the VO Fund Vanguard is generally known for having the lowest expense ratios, and we go ahead and look right here on V 00 We're going to see that the expense ratio is only 0.3 in comparison, 2.945 for the S P Y. Fund. That being said, SP, why is the highest traded and is generally regarded to be the best managed, So it is gonna be much more accurate to the exact market, as you can see. You know, they were very, very, very few discrepancies here. Where is the vanguard? You might seal, you know, maybe a little bit more discrepancy. But at the end of the day, it's really not gonna make a big difference If you are a long term investing for the most part, Vanguard is gonna have the lowest expense ratio when it comes to long term investing. So, you know, that's where I personally invest my money. But you're certainly welcome to do whatever it is that you would like if you see more value in the different companies fund than by all means. 8. How to Find Stocks: What's going on? Guys, welcome back to another lesson where in this video we're gonna be talking about how to find stocks and et efs to potentially invest in because it could be hard here and there. It actually just think about companies that you might want to invest in. I mean, there's plenty of companies out there that you might not interact with on a daily basis or think about that. You know, in general might have some great financials. It might become a great investment, and you just never heard of the company. But the first step, I would say, is to just look around in your surrounding, see where you buy your shoes, see where you buy your clothes. Who's your utility company? You know who takes your trash out? Look at all these companies, you know. Waste Management, for example, is a company that I actually don't interact with on a regular basis at all just because they don't really operate in my area. Waste Industries is a private company that operates in the area, but I was completely unfamiliar with waste management as a company. However, I found waste management by going and looking at Warren Buffett and Bill Gates is portfolios. So you know, that's one way that you can do. It is just go out there and look at some famous people. You know Jim Cramer from CNBC, Bill Gates, Warren Buffet. You know, all these big people just go and look at their portfolios, see what they see value in and see if there's anything in there that you might want to look into mawr and potentially invest in. So the first step to finding companies, I would say, is to really look at your surroundings for me. I'm sitting here staring at a canon camera. I hadn't thought about looking into Canon as a company, but as I'm standing here recording this video, I'm probably about to go look at Cannon as soon as I finish recording. Just because that's a company I've never thought off. Maybe they're a publicly traded company. Maybe they are not. I don't know. I haven't never really looked into Canon. So you know, as soon as I get off this video, I'm gonna go look at Cannon. My computer that's sitting to the right of me has a micron S s d I actually currently owned some shares of Micron. But it was only because of that is the reason that I actually thought about Micro and said , Hey, you know, why don't I go look at Micron stock? Have an Intel processor? Maybe I'll go look at Intel stock. Look at Intel's business. Go look at their financials. Go look all into intel and see what it is that Intel does, because some companies will have a big presence in a consumer's hand. But in reality, majority of their revenue and business comes from maybe business to business or, in the case of waste management, they might actually take trash out four people collected from their houses. But if you dive into their financials, you might see that you know that while that's the only interaction that you have with waste management, that might only be 3% of their entire business. And you know the other 80% in another 15% is the disposal of large quantities of waste from , you know, other companies on a local basis. That's just an example. I don't know if that's necessarily the case, but in a lot of cases you don't get married to a company just cause you use them because you know what you use might be a tiny little bit of their actual revenue. Personally, I use Windows on my computer, but Windows is becoming a very small segment of Microsoft, whereas Microsoft, as there is becoming a large segment as well as corporate level computing. So that's where a lot of their business really comes from. Even though I interact with them every single day. Not a lot of the actual money they make in a big portion of their business is really based on that. However, it is a great opportunity for me to look out and say, Hey, you know, Microsoft's a company that I interact with. Let's go look at Microsoft. And after looking at the company, maybe you decide at that point Hey, you know, this is a company that like to invest in based on criteria, you know, That's X, X and X. This is something that I will go over throughout the rest of the course as to you know, why you may want to invest in a company, But in terms of finding stocks, you know, I think that's one of the best ways the next video is actually gonna be a reuse. The video from my day trading course. If you guys want to check that out, you can. However, it's really going into the scanning of stock so you can use scanners. But I generally find that to be more effective when it comes to day trading. Rather than investing, However, I am gonna go ahead and throw that video into this course just so that you guys have the opportunity to look at that and kind of get some free information, basically. So if you guys want to watch that, go ahead and do so. If not, you can skip to the next lesson after that. 9. What Stocks and ETF's to Trade: what's going on? Everyone, welcome back to another lesson where we're gonna be talking about how you guys confined stocks to trade just because in some cases this is actually kind of difficult to do, especially when it comes down to trading penny stocks. Now, I don't generally trade penny stocks, but I am pretty aware of how to find some good penny stocks. So first off, we're gonna start on the TD, Ameritrade, think or swim platform, and we're gonna go up here to scan and then to stock Hacker once you're here. If you guys have these filters, you guys can set these different filters honestly, like a 1,000,000 options for different criteria. I generally like to just put 3% up on the day so far, as well as a market cap of at least a $1,000,000,000 just because that's what I look for. Obviously, if you were looking for penny stocks, you might want to put a max market cap of a certain amount. But that's not really what I do. So we're just going to go over what I generally will do when I'm just looking to see what's up big today in terms of blue chip stocks. So this is general what I'll do, and it's given us 920 results. If you're looking more so for large changes, you can go ahead up here. You can see you know, affiliated resource is Corp is up a ridiculous amount. Now, when it comes to looking for blue chip stocks, I'll actually generally leave my market cap on Max up here. But then my percentage change. I'll actually reduce this quite a bit oftentimes to 18% or so just because that's gonna take away a lot of stocks. And in some cases, most of the stocks that are up over 10% on the day are gonna be fairly unknown companies. You know, this company right here is only a $14 million company, which begs the question as to why it is showing up on this results. Just because I do have a filter off 1000 which should be $1 billion. But at the end of the day, it is showing up on this result. So we've gotten click here and refresh. You know, we still have stuff showing up that probably shouldn't be. And I'll tell you Right now, these scanners and things like this are not full proof. They're not always gonna work perfectly. But a lot of times you can just be pretty realistic with what you look for and you know, So now I've got 500 results. You know, we can keep looking, but most of the time I'll just go and click this toe. You know, look at the bottom. Look at the top and most of time that's gonna hit some of the companies you might want to look into, And you can just go right here and click copy and go ahead and paste it into a chart and just take a look at the company. This company, for example, is definitely a penny stock. I mean, it's down in the sense. And I believe this company was valued at $14 million so Okay, actually, this company was only valued at $360,000 so obviously a penny stock. And if you were able to buy $10,000 worth of this stock and it went up to, you know, even just a few cents here, you're looking at 1000% gains. So that's kind of the game plan here is just looking for stocks. It's kind of a very boring process. You just sit here and look through these and try to find things that look good. You can also go ahead and put on Mawr filters. So now one thing that's very useful is to actually go and click the volume filter. And I like to put this up. Um, usually somewhere around here just to go ahead and exclude some of these results. Um, sometimes you might want to go even higher, especially if you guys were trying to trade options. You're gonna want something with very high volume. So, you know, maybe we go all the way up here. You can play around with it some, but I'm really looking for to filter out some of these companies that I know are not something I would be interested in. So now it's starting to look like we have some decent results. Obviously, they're still companies like this and this they're showing up. But you know, this right here is a $1,000,000,000 company, so we can go ahead and take a look at this to see if it's something that is interesting. Um, yeah. So, you know, this is something that would be interesting. Especially if we could have caught it before this earnings and maybe done some research and figured out something, or if we even caught it intraday during the earnings, we might could say, You know, hey, this is pretty obviously overvalued. And, you know, this would have been great short opportunity of 4% on the max in. Now, I encourage people to be very realistic. You're probably not gonna buy this at the very top and sell it at the very bottom. So, you know, while it is close to 5% you're probably looking at maybe 2% of what you're actually gonna lined up catching. But at any rate, 2% in my opinion, is pretty good. But at any rate, this is definitely something I would have been interested in if I had caught it this morning before this giant drop. But overall, you can go and keep on playing around with scanner here. There's a Brazilian options you can choose, you know, and you really just have to figure out what it is that you want to do based on your criteria. whether you are not you're trying to trade penny stocks or you're looking for blue chip only, or you know things like that. So but outside of this, I actually also like to use the FINBIZ scanner, and what this is is basically generally what I'll use when I'm trying to find options. So if I'm looking for companies, that might be a good opportunity for an option straight. I'll come here, go appear to the scan, and then here we can set all of these. So when it comes to options, I like to go with over $10 billion. We need to find the option herbal filters optional, and we'll also you can play with these gap up filters and change from open and things like that. You can even set things for studies. Ah, lot of things like that. I generally won't play with that stuff too much, but I will definitely look for things that have options. They are at least $10 billion lastly, I will almost always set a current volume filter of at least 100,000. Sometimes I'll go even higher, so it just depends how many results we get. So Obviously, we have a ton of results here, so you might want to consider being a little bit more selective. So, you know, maybe we say over a 1,000,000 especially when it comes down. The options just because those or something that you definitely are gonna need a lot of volume and floats. What I also do is set a float filter, and sometimes I'll set a change filter of up 2%. You know, just toe potentially limit out some companies that aren't really incredibly volatile today or don't really have anything going on today. So I don't actually see the float filter anywhere on here, but there used to be a float filter that would tell you won't relative volume. We can actually set, um, over 1.5. It is generally good. That means it's gonna be a little more volatile today, So a BBV this one will almost always show up. I'm just gonna let you guys know A BBV almost always shows up on my scans. I'm not entirely sure why. It's a pretty good pharmaceutical company, in my opinion. But, um, we look here, you know that earnings today, So that's definitely part of the reason they are showing up. Um, you know, volume is definitely higher than it normally would be. You know, if you had to call this in the morning is definitely potentially. Could have been a good trade. As you know, there was almost 2% margin there. A swell is even higher if you were looking to hold it throughout the day. But if you look right here, you can actually see a chart of what the company is done over the last few months. So most of these companies are actually pretty known companies. And part of the reason for that is the relative volume of 1.5 as well as our market cap fielder. That means, you know, large companies are very rarely gonna have over 1.5 relative volume unless they've had earnings. So, you know, my guess would be that almost all of these companies have had earnings. Uh, you know, within the last little bit. Um, so you know, it looks like Kraft Heinz has not. But we did have this huge spike in volume. So that's why that's showing up. You know, I'm not entirely sure what caused that, but he must. That is Ah, T Mobile. I've invested in them in the past. Let's see. So they had earnings yesterday. So that's part of the reason they're Volume is quite high in comparison to normal. Um, you know, if we go look at the one day chart volumes definitely higher than it normally has been in the recent past. So overall, you can also play around with this. It's really not that big of a thing. I'm not going to use this every single day. It's actually pretty rare that I'll use this. Aside from swing trading here and there, I will definitely use some swing trading filters that all set. But, I mean, those generally look pretty similar to this, except for um, instead of using these filters, I'll keep these pretty much the same. Oftentimes, I will leave the optional on, even though I'm not looking to trade options just because companies that have options are oftentimes gonna be more so. Companies that I want to actually swing trade current volume. You know, I would definitely keep at over a 1,000,000 but at this point, you guys can actually for swing Trading can actually select patterns here, so maybe I want a TL resistance strong. Um, you know, that's gonna give us a pattern, and we can take a look at at these companies. And maybe there's some names that you recognize, like, uh, this company. I really don't have a say the name, but I'm very familiar with this company is one of the largest healthcare companies out there, you know, honestly. Looks like it might be a good bye right now if we take a look, let's see. Yeah, so, I mean, this is actually something I would be pretty interested in. Um, probably do some more research after I finished recording this video, but yeah, you know, this definitely looks pretty good. In my opinion, it looks like they had a bad earnings call. And that's the reason for this fall have being said That's definitely still on opportunity . And if we look on this 180 day simple moving average pretty much every single time, this comes down and touches this, it bounces. So, you know, if we look here, we're getting pretty close to this estimate again. You know, we could wait out for a confirmation to see if we think it's gonna do that again and potentially by in there and hold it for, you know, a month, two months and make close to 10%. That's pretty good. So that's really what I'd be looking for in terms off swing trading. And yeah, I think I pretty much covered everything there is that I do in terms of scanners. I don't personally use scanners too often. So that's why I don't have a ton of, ah information here for you. But scanners definitely can be useful here in there, regardless of your trading style. So just keep that in mind. And just remember, this website is called FINBIZ. You guys can just google it completely free. So with all that being said, I hope you guys did enjoy this video, and I will see you guys in the next lesson. 10. Time in The Market vs Timing The Market: So in this lesson, we're gonna be talking about time horizon personally when it comes to long term investing. I'm a very avid believer in the fact that you should never invest any money that you were gonna need within the next five years. Because short term speaking, if you are going into a position for the purpose of investing, you're not looking at it from a trading perspective. You're not looking at it from a short term perspective. And you know what happens in the short term can be very volatile, and you're not gonna have a guarantee of making money when it comes to that stock. So if you have $20,000 for the down payment on your house that you're gonna need in two years, what happens if you invest this money and the market goes into a small recession, or maybe a stock crash over the course of the next year or two and all of a sudden you're $20,000 is now 12 $13,000. Now you can't get that house or if you're gonna need this for rent in two or three months, Okay, Whatever the situation may be, you never want to invest any money that you were gonna need within five years. Because there is a significant chance that you know, if you do that something today, you might not make anything in the next five years. It's certainly possible long term speaking. Those 6 10 15 years out the likelihood of you making money, especially when investing in index funds or E T. F. S or anything like that. The odds of you making money go up substantially. There are only a few times in history in which the S and P 500 was down over a five year period. Obviously, if you go take a look at, like, 2003 and then go look at the absolute bottom of 2000 and nine is a little bit over a five year period. But the market probably was down. In fact, I'm almost certain it waas. But those are very handpicked situations that have only happened a few times in the entire history of the market. Generally speaking, if you invest something today, you can't expect to have a positive return in five years. Generally, no investment is going to carry a guarantee you're not guaranteed to make money anywhere. But if you are taking some low risk positions in, like Samiti Efs or or things like that, then the odds of you having a profit or at worst breaking even over the course of a five year period is very high. It certainly is possible to lose money, but you know, the odds are just not there. If you need $20,000 for the down payment on your house and you know, worst case scenario, you lose a little bit over a five year period. Now you've got 18. You know, that's probably not the end of the world in the outs of you losing 2000 are fairly slim in the outs of you. Making three or four, maybe even 5000 over that five year period is much higher. So that's generally just a great rule of thumb to use. Don't invest anything that you're going to need in the next five years, and no returns are guaranteed. Now also like to mention this, because I find this to be a very effective strategy, and that's not paying attention to the stock price. There are tons of things that can affect a stock price, stock buybacks or maybe stock splits or reverse stock splits. Warren Buffett always says it's much better to look at it as if you are buying a small piece of that company. And would you buy that small piece at X valuation? So in terms of X valuation, you would look at the market cap. So if you think American Express is worth $100 billion the current market cap is $70 billion then it might be worth going ahead and picking up some shares of American Express. However, it's not generally a great idea to just look at the stock price. The stock price doesn't even necessarily mean anything. Every company is gonna have different numbers of shares. Every company is gonna have different stock prices. The market cap is really what matters when it comes down to valuing a company for a long term horizon. Warren Buffett also says that if the stock market work to close tomorrow for the next five years, and you know, if you bought this share of American Express today, you couldn't sell it for the next five years. Would you still buy this share of American Express Do you still think American Express is gonna be a great company five years from now? If the answer is no, then you probably shouldn't buy American Express. If the answer is yes, then that may be a great company to go ahead and purchase shares off today. But just don't think of things in relation to the stock price. Think about the market cap in the long term horizon for it and then decide whether or not it is worth it or not worth it. So with all that being said, I will catch you guys in the next lesson. 11. Analyzing Balance Sheets: welcome back to another lesson where today we're gonna be talking about how to analyze balance sheets. Look through really all the aspects of Yahoo finance in terms of financials and things like that, and try to really pick apart from companies and see whether or not they're potentially a good company to invest in. So when you first start out, I'm gonna go over here and when you first pull it like stock, we've got Carnival Corporation pulled up here. We're going to see you know, all this data here. Some of this is relevant. Some of it isn't gonna matter that much. But if you take a look down here, we're gonna be fair value. Generally, I wouldn't pay attention to this, and you have to be a premium user to actually see what you know they're looking at and what they're basing this fair value on. Generally, I don't look at this incredibly hard That being said, you know, I will take a glance and see, you know, what do they think? You know, we'll just take a look and see what they think. Sometimes if they have fair value, negative, 80% return and I'm coming up with the complete opposite. And I'm saying, Hey, you know this This looks like a fantastic company to me. Then, you know, maybe there's something there seeing that not. But aside from that, that's all I really use that for is really just to see what are their analysts seeing. You know, Are there gonna be really far off what I think? Or are they gonna be pretty close? But some of the first few things that are very important to pay attention to is the market cap. As I stated in one of the previous videos, market cap is really what you want to focus on. You know? How much is this company worth? Don't worry about the share price. Market cap is what matters. If you think $9.7 billion this fair valuation for carnival, then you know they're currently trading at a fair valuation. But it's also gonna be important for something we're gonna talk about in just a minute as well. So, you know, I like to take mark of what the market cap is. In this case, we have 9.7 billion, which, if you're not aware, what market cap means It's basically all of the outstanding shares times the current price per share multiplied together, and that gives you the market cap. So in the case of Carnival, we could take 9.715 billion and divide that by the current share price of roughly $12.70 and we'll see that they probably have somewhere around 764 million outstanding shares. You can also just Google how many outstanding shares they have. But regardless of that, another thing that's very important to pay attention to is the P E ratio. Now P E ratio stands for price to earnings, so this is generally calculated how much earnings they have per share. That being said, it's also, you know, you can look at it on a market cap standpoint and say, Hey, you know, over, You know if we get on here and look at the financials. If they made 2.9 billion, A 10 p e ratio would mean 10 times 2.99 billion gives them a market cap of 29.9 billion. So if that's what they were trading at, they would have a 10 p Currently they're looking at a 4.56 though, and this number is probably slightly off just cause. I believe it is based off of the share price to the earnings per share, which are gonna change slightly in comparison to overall earnings for the company versus overall market cap for the company. But that's essentially what P E. Means, so companies with a lower P e with theoretically have a higher return per share. That being said, not all P ratios are built equally. In fact, they're all pretty much built. Ah, very unequal. And that's because if you go and look at a company like Apple, we're going to see that they have a P ratio of 21. In this case, you would say, Hey, you know, uh, carnival looks like a better deal. You know, the P ratios less than 1/5 of apples P ratio. The thing here is that Apple is a much more stable company. An apple is also likely projected to grow at a faster rate than carnival is those air two things that have a huge Barents upon P E and in what appear ratio is Amazon, for example, I think has a 60 or 70 p e right now, so you know, theoretically would take 60 or 70 years for them to make the amount of money that your shares are currently trading at. That being said, Amazon's expected to grow very, very fast, so the price to earnings ratio is going to be much higher. It's gonna have a much higher multiple on the company, so just keep in mind P E ratios. You know, if you're looking at two companies like Carnival in Norwegian, these air to companies that are very similar if one of them has a one P ratio R two P e ratio, and one of them has a eight p ratio with one or two maybe a better deal. That being said, in the case of one or two, if a company has a one or two P e ratio, something's going on, and that's kind of what's going on right now. We're currently sitting in a giant stock market crash as I'm filming this so some of these companies are actually on the verge of bankruptcy. In the case of Carnival, you know, they're definitely throwing around words that they may go bankrupt in the next 60 to 90 days. That's gonna lower the P ratio a lot. So, you know, generally speaking Norwegian, my trade at a 10 or 11 p and carnival might be it 13 or 14 making Norwegian a better investment if they are exactly the same. Which is also never the case. Never, exactly the same. But point, being a lower P is generally better. Unless there are some, you know, high risk of things going on, like a potential bankruptcy or anything like that. Then you know, obviously that's gonna affect it. But outside of this, I like to go ahead and look at the financials tab. And here we're going to see it starts off on the income statement. I don't generally pay attention to this A lot. When I will glance at is down here on the right. The financials just take a look and see. You know, Are they your on their revenue? Are they growing? You know, their earnings. Um, you know, what are their quarterly earnings look like? So, in the case of this, everything is shut down right now due to the pandemic going on. So the cruise lines actually lost money in the last report. That being said, you know that isn't normally the case. Normally, they make quite a bit of money over $2 billion a year, in most cases for Carnival Cruise Corporation. But you know, when comes to this, you know, currently we're sitting in a unprecedented time, and, you know, they did wind up losing money in this quarter, but I do like to go and look at that. But next, what I like to look at, and what's very important to me is the balance sheet. So currently, first, I'd like to go down and just look at stockholder equity. Carnival has 25 billion in stockholder equity. That is quite a bit. Almost never will you see a company trade at a lower market cap, then the stockholder equity in the company. The only time that happens, for the most part, is when there is a potential for a bankruptcy, which there is. Currently, Carnival is currently running through about $16 million a day. So you know this stockholder equity is going down by $16 million per day that they stay non operational, and it's been weeks now that they've been non operational, and we go up here and change this to the quarterly tab. We're actually going to see the stockholder equity reduced by quite a bit, almost a $1,000,000,000 quarter over quarter. So and that's really accounted for here, where they lost almost $800 million. So that's something to consider. Another thing is to consider the nature of the company. So if we go back to annual and we look, you know, this is a is a cruise line operator. We're looking at a black swan event. Something that came out of nowhere was unforeseen. And you really hurt this company. But generally speaking, cruise line operators and airlines and things like that aren't gonna need a lot of cash on hand just because they always have money coming in. This is this is a rare occasion in history in which their revenues have dropped to pretty much zero. But we're gonna go and look and see that they have. And this is what's very important to me is cash. Okay? Carnivals got 518 million in cash as of last filing for the year. Now, if we go and look at quarterly we're gonna see that that numbers way up because they took on more investment. But, you know, if we go ahead and look back on annual and we're just going to use this for the example, they had 518 million in cash against current liabilities of $9 billion. Now that doesn't mean they're automatically going bankrupt or anything like that. It really just means they don't have a lot of cushion in the event that revenues dropped significantly or currently $0 because revenue is is pretty much nothing for Carnival right now. So you know, that's why they are in a little bit of trouble because they didn't have a ton of cash. And that's why you've seen cash now Goto almost three x because they took on more investment and added more long term debts. It also appears that quarter over quarter they sold about 1000 shares. I'm pretty sure they sold far more than that, but you know, that's what it's saying here right this second. But regardless of that, you know, stockholder equity has dropped by over $1 billion quarter over quarter, which is quite a bit. I mean, you think about that in a year's time. That's over $4 billion lost. That's, you know, 15% of the company lost in one year. Regardless, though, you know, in this case, I do own some carnival shares. Carnival is a company that I think they're gonna be able to make it out of this. And once they do, you know, the current P ratio off five is incredibly low. And, you know, I think I'm getting these shares at a big steel. That being said, you know, there is a potential for a bankruptcy in which I would lose pretty much all of my money. But right now, this is a very high risk, high reward play. Next. If we go over here to this example Footlocker, this is one of my favorite companies by far. I would love to purchase some more shares of this as soon as possible. Just because, you know, if we first go ahead and looking of 48% estimated return, they've got marked as undervalued. Go and look at the P E ratio. We're looking at five. And currently speaking, this is a company that has revenues that have definitely been affected. Just because a lot of their stores are shut down. However, things change a little bit over here, so if we could look down here in earnings, we're going to see that revenue continues to increase pretty slowly. But revenue is increasing. Earnings are increasing for the most part, you know, obviously they've been down overall since 2000 and 17. But you know, generally speaking, earnings have been pretty consistent and, you know, they have been doing fairly well. Um, you know, overall, I really like this company in terms off earnings. You know, they're not setting any records, not doing any huge innovation. They're not the next Amazon by any means, but their P E ratios very low. I mean, a company that isn't the next Amazon should. Ideally, in my opinion, on a P starts to get pretty low for a company that isn't doing that much innovating. And we'll get into this idea later on in the course. The idea around cash, cows, stars, question marks, things like that as it pertains to companies. But this P ratio was very low, in my opinion, especially when we go over here and look at the balance sheet and on a pullup by summering here. If we go and look as of January 31st 2020 which was about three months ago, two months ago, you know they've got almost a $1,000,000,000 in cash, with about $1 billion in current liabilities. Having said if we go ahead and look at current assets, they've got 2.3 billion against current liabilities of 1.1. And what's more important to me is total long term debt is $122 million. That is not a lot of money at all to be in debt, especially when you're a company of this size. There are 2.6 billion valuation. And, uh, here's what I really love about this company is not only did they have plenty of cash to cover all liabilities, but the total stockholder equity is 2.4 billion total market caps, 2.6. So there's a very small multiple between, you know, the net intrinsic value in this company versus the actual market cap that is trading at so very little difference. You know, if we don't look at Apple, we're going to see a whole different picture currently trading at $1.173 trillion. But if we go over here and look at the finances for the company, we're going to see that total stockholder equity is less than 100 million as of right now. So they've got almost a 10 X between their stockholder equity versus what they're trading at now. Part of that reasoning is these explosive earnings in huge numbers. I mean, we're talking, you know, $15 billion more in revenue year over year, $35 billion more in revenue year over year, five billion less this year. But, you know, in terms of earnings, they're going to some transitioning. I mean, some of this is pretty expected on, and they pretty much beat all earnings calls. You know, Apple is a company that's innovating and creating the next big thing. They're gonna traded on a much higher P E, as we will speak about later on in the course. But generally speaking, you know, the multiple here on Foot Locker is very low, and it makes it really one of my favorite companies. And if we go look at some technicals, that's not really what this videos for, But I'm before this big drop. They were trading it closer to 40 and I think that's more figure. But realistically, I mean, I think this company's worth Ah, good. Bit more than that, I would say in the sixties, because the sixties put them at about a $6 billion valuation, and I find that to me much more fair. So you know, when it comes to Foot Locker, that's kind of what I'm seeing in the company is that the multiple is is very small. They have plenty of cash to cover any debts. Generally speaking, I see this is a low risk, high reward company, and this is by far one of my favorite positions in my account. And, you know, I will likely continue adding to this quite a bit. And lastly, we're gonna finish this video off on Apple's balance sheet, where we're gonna look and see they have 100 billion in cash against long term debt of Let's see here 16 billion and current debt long term debt of 91 billion. So they've roughly got enough cash to cover pretty much all of their debt, which going into a big, risky situation like this current pandemic that's going on. That's what I love to see. I love companies that have plenty of cash to cover all debts and continue operating. So you know, that's what I like in generally, I like companies with a lot of cash anyway, whether we're going into any kind of big situation at all, if they've got more cash than they do debt, I like the company. Sometimes I won't like the valuation on the company, and I still won't buy. But generally, if they're trading at a low valuation or a low P ratio and they have a lot of cash on their books, there's a good chance I'm gonna find that to be a favourable company. Now I know I said Apple was gonna be the last stock we looked at, but I want to look at Skyworks Solutions here just to make this point as well. $1,000,000,000 in cash and if we go ahead and look, they don't have any long term debt or current debt, there's pretty much no debt and they've got a $1,000,000,000 on the books. Four billion in stockholder equity. If we go back to summary, they're looking at a $15 billion market cap. So it's about a three X, which gotta consider they got over a 1,000,000,000 in cash and no long term debt. So, you know, in terms of balance sheets, Skyworks has an excellent balance sheet, and I really like it. Lastly, I want to take a look at Google. They have $120 billion in cash, against four billion in long term debt and pretty much no current debt. So when it comes down to Google, Google is my opinion, has the best balance sheet out of pretty much any company of I've ever seen and going into a big recession or, you know, potential recession like we are right this second. You know, Google's balance sheet is phenomenal, and that's going to give them a lot of bargaining power survivability. And you know there's there's almost no chance who goes bankrupt, even during a huge recession, and they've got the cash to buy out some of the companies that do go bankrupt or fall on hard times. So you know, Snapchat starts doing a little worse because they don't have as much cash and they're much smaller. Google's got the money to buy Snapchat. All of a sudden step check could be a great investment for them over the next 56 years. And you as a shareholder would reap the benefits of that. So with all that being said, I hope this video did help you guys out in terms of, you know, looking at fundamentals and balance sheets and things like that. And, uh yeah. So with all that being said, I will get you guys in the next video. 12. Beta Ratios and Risk: our guys. So in this video, we're gonna be talking about beta. So this is this number that you'll see right here in it. Ah, for this case is 1.5 And what this essentially is, how volatile a company is in comparison to the overall market. And it could be used as a little bit of a measure of risk. Just because a company that has a beta very close toe one is gonna trade very close and provide returns very close to the overall market. But if we go and look at this company, Pfizer there, Betas 0.6. Now you're probably wondering, what does beta mean? Beta essentially means that for every 1% that the market goes up, this company is going to go up. In this case, since its 10.6, it's gonna go a 0.6%. In the case of Google, it was 1.5 If the market were to go up 1% Google would go up 1.5%. Facebook's very similar at 1.7 If you need any more additional help with Beta, I would pretty much just Google beta on investor PD a and just read the page. It'll pretty much tell you anything that you might have a question about, but it's pretty self explanatory. It's It's generally used to measure risk and volatility within a company in comparison to the overall market. So so with all that being said, I hope you guys did learn something from this, and I'll get you guys in the next lesson. 13. Question Marks, Stars, Cash Cows: what's going on, guys. So in this lesson, we're gonna be talking about the idea of dogs. Question marks, stars and cash cows. Now this graphic kind of explains what that is. If you look over here to the left, we're going to see market growth low and high, and then market share low and high. So generally this is used to describe products, but in a lot of cases, it can also apply to companies. In fact, in pretty much every case, I would apply it to a company based off of their products. Now, some companies that are very, very, very diversified, like Johnson and Johnson. You know, it's a little bit hard to say exactly where they land in here just because they have products that are stars. They have products that are cash, cows, dogs and question marks, Stepping said. In the case of Johnson and Johnson, I would almost certainly put them in the section of cash cow for sure, and this is really what you want to think about. You know, in the case of Facebook, pretty much all of their revenue comes from facebook dot com and instagram, and when it comes to Facebook. There's pretty much no question that they are a star there in a high growth market, and they have a huge market share. Twitter is starting to become a little bit more of a star, but for a while was definitely a question mark. They had a low market share in a very high growth market. Like social media, Snapchat is kind of in the middle of a dog and a question mark that they're definitely in a fast growing market, but their market shares just so low. I mean, if you're all the way over here in the question mark area, then are you really a question mark? But you know, there's a potential for Snapchat to kind of move into the question mark area and eventually a star. And I would say it's almost a guarantee that the Facebook marketplace will eventually move from being a star. Once social media has kind of had its time in the spotlight and still kind of being this brand new thing that's Onley existed for 15 years. 2030 years from now, social media will be a known thing. There's no riel innovation and social media, and they'll almost certainly at that point become more of a cash cow. And while this explains what companies are in terms of being, you know, cash, Cal versus a star essentially someone like Facebook, they're growing really fast. And there you have a huge portion of the market. Someone like Apple. If we go ahead and look at the iPhone, for example, which is a huge portion of their business right now, for a long time it was a star. I mean, that thing from day one kind of was huge and, you know, they had a huge market share and they were growing very fast. Just by increasing the price of the phone, they get fuel growth for the entire company for the last 10 15 years. Now that's really been the bread and butter of Apple. However, the opportunity to increase the price on the iPhone has kind of started to slow down at this point, and the iPhone is kind of maxed out. I mean, there's there's no riel, new things. They're gonna be able to do the iPhone to get more money for it. And pretty much everybody who's going to get an iPhone has an iPhone. Obviously, it'll probably grow a little faster than the band aid industry. But generally speaking, the iPhone is starting to not really be a star per se and turn a little bit more into a cash cow, something that just turns out revenue and profits for the company on Repeat, you know, pretty much for a very long time. If we were to look at something that's very commoditized, like toothpaste, toothpaste is a cash cow. There's X amount of profit margin that Johnson and Johnson and Procter and Gamble and the companies that generally make toothpaste. That's what they're gonna make. They're going to sell toothpaste. Everybody's gonna buy toothpaste and you know it's it's solidified itself as a cash cow. It has a huge portion of the market, but at the end of the day, there's not a lot of growth opportunity to turn into a star. And generally things do kind of going a clockwise rotation here. Sometimes they'll start off his dogs. Then they'll move into a question mark. Then they'll move into a star in the night cash cow. Now that's looking at it. From a product standpoint, If we look at a company standpoint, companies can involve based on their products. So in the case of Apple, for a while they were really more of a cash cow company and even a dog, really. In the late nineties, iPhone comes out, turns them into a more of a star. And then here recently, they've turned a little bit more into a cash cow just because so much of their revenue was based off a product that was turning into more of a cash cow. That being said, they've now started to put a lot of effort into service based businesses and things like that. So you know those air question marks right now, and that has a potential to turn Apple as a company back into a star. Microsoft is another great example Windows came out in, I believe the eighties in the eighties. Microsoft, you know, might have been a question mark company. It became a star in the nineties, and I mean, Microsoft is doing fantastic throughout the nineties and early early two thousands, and then in around 2004 or five, they kind of missed the wave in terms of the mobile market, and that kind of started to turn them into more of a cash cow. Almost all of the revenue was coming from a product that was essentially 10 20 years old, nothing new about it. And they were having a hard time really coming up with any new products or features. However, in the last 10 years they have expanded what originally, I think, was called Microsoft. Oh, no, it was called office Web, something I don't know. But whatever it was called, it was turned into Microsoft Azure, which now accounts for a huge portion of their revenue. And, you know, when they first started that product, it was by far a question mark for the company. Nobody knew if it was really gonna be huge. It is by far a star. They have a huge portion of the market, pretty much Microsoft and Amazon Web services pretty much control that market believe combined. They have around 80% of the market share of cloud computing and things like that, and that is definitely a star for the company. If Microsoft as zero revenue is really the main thing that people are looking for, because it's growing very fast and they have a huge market share, if we go to TD Ameritrade and we go ahead and look at Amazon. Amazon Web services was a question mark back in 2000 and seven, I believe when they started it and they didn't release any numbers until 2000 and 13 or 14 maybe maybe was 15 didn't release any numbers from Amazon Web services, but when they did, people found out this was a huge market with huge growth. And it's now actually bigger than any other single segment of Amazon. If we go ahead and look Amazon, North America's 37% of the company Amazon internationals 14.6 based on these ah analyst recommendations and estimates. So obviously this isn't exactly this is really just the opinion of somebody. But they put the value here of all of amazon dot com in terms of the retail sales and things that people generally associate with Amazon at somewhere in the neighborhood of 52% 45.2% of Amazon is Amazon Web services. That's mostly a B two B business, so the average consumer doesn't even really know about Amazon Web services. But it is a huge market for Amazon when it comes to Microsoft if we go ahead and look. The intelligent cloud counts for about 35% of their business, which is a good chunk when you consider the largest is only 37. So you know this is a little bit more than 1/3 of Microsoft's entire business, and part of that is actually cash as well. So this is a little bit more than 1/3 of their entire business, probably around 38% of their actual non cash business. And this is all kind of grown in the last eight or so years. So Microsoft, as you're and, you know, intelligent computing and things like that is very much so a star right now. Whereas the Windows operating system is just a cash cow, it just spits out money pretty much every single quarter. Nobody asked any questions, and you know it's doing fine. But there's no riel, huge growth there, you know. It's just making money. They've got a huge portion of the market share, and that's all there is to it. Point being here. Microsoft, which when they first went public, was probably a question mark of a company and then throughout the nineties turned into a star on Wall Street, eventually turned into a low growth cash cow who has now switched back into a star. So it's possible to kind of, as a company, kind of turn around and, you know, kind of fly all over the start. Really. Boeing, for example, was probably a question mark. Maybe when they first started 100 years ago, they were a star for a very long time than they were a cash cow. And as it sits right this second, Boeing is a little bit of a dog. Same thing with Sears Before they went bankrupt, Sears was a little bit of a dog, you know, even though at one point they were a question mark. When they you know, back in maybe the 18 hundreds when they were doing catalogs, they might be kind of considered question Mark. Maybe, maybe not. And then they turned into a star when that business took off and they were, you know, doing amazing. Then in the in the late nineties, two thousands, they kind of started to turn into more of a cash cow. There wasn't a ton of growth opportunities they weren't really doing any kind of innovating , and then they turned into a dog. That doesn't always have to happen, But in the case of Sears, that's that's what happened. So I like to use this analogy to really think about a product and think about what a company is doing to kind of see where they're going to go next on this chart. Are they here and are they going here? Next? Are they here? Are they going here? Next? Are they a star right now? And they're going into a cash cow or they cash cow that's gonna turn around like Microsoft and has some huge growth even more in the future. I like to really use this to think about what a company has going for it over the next four or 5 10 years and kind of see where I think they're gonna be on this chart. So that's kind of what I use this for. That's what you know. The idea of question marks, stars, dogs, cash cows. And that's pretty much how I assessed the outlook on a company when I kind of create my own thesis for a company. After analyzing a balance sheet and doing all those things. So with all that being said, I hope this video was helpful and I will see you guys in the next lesson. 14. Dividend Payout Ratios: Alright, guys. So this is gonna be a very short lesson. But essentially what I'm gonna be showing here is the dividend payout ratio of some companies and kind of explaining why this is important to look at just because it could give you some signs about a company as to why you might not want to invest in them or potentially be a ah, thumbs up as toe. Why, you may want to. So, in terms of Microsoft, we've got a payout ratio here. I'm on dividend dot com. I just checked in my purse off sticker. We got a payout ratio of 36%. So generally, I like companies that are under 50%. Sometimes here and there I will invest in a company above 50%. But for the most part, I love companies that are below 50%. Just because if they're paying out all of their earnings, then they have no money to reinvest into the company and grow. So you know, I don't love companies that are paying out 80 90%. They're pretty much just giving away all the earnings back in the form of dividends. And they have no money to reinvest back into the company. In the case of Microsoft, they have the 36% payout ratio. So they're still retaining quite a bit of earnings pretty much every single quarter that they can then reinvest into new products that might grow at 2030%. Whereas if I take that dividend and reinvested into the S and P 500 or something, that I'm probably gonna get around a 10% return, whereas Microsoft is probably be able to invest that money much better and grow my overall position much better than I would just in the broad market. Apple is another great company at 24% so they have over 75% of their earnings are retained , which gives them plenty of money to continue to reinvest an ideally earn a higher return there. Then I would be able to return myself in the broad market. This is also important because a lot of times when it comes down to dividend investing, people will look at the yield. And generally speaking, the yield isn't even what you want to look at the payout ratios what you want to look at, because if a company is paying out 90 95% or even. Sometimes they'll pay 100 140% if they're paying out. You know that much money, there's a good chance the annualized payout is gonna get cut or potentially even pretty much dropped to nothing. If the company were to fall on hard times, so even though they might be paying in 8% yield right now in three months, they might not be paying anything at all. So that's something to really pay attention to is, you know, if it's above 50% they're not gonna have money to reinvest in the company and potentially make more money for you in the future. But they also may have to wind up cutting that dividend. Where is a company like Apple at? 24% shouldn't have any problem maintaining this dividend and even increasing it in the future as earnings increase. Carnival is a company that I am currently invested in. I was invested in it far before this, you know, big situation that's going on right now happened, but because of that, they're payout ratio. As of last earnings, which were just two weeks ago, their payout ratio now is 141.89%. This yield is going to get cut. This $2 annualized payout ratio is not gonna be maintained. I will just about guarantee it. You know, we got GPS of 1 40 They can't lose money on the dividend, especially when they're burning through cash right now. Unless things turn around for carnival big time here soon, this dividend yield will be cut. So, you know, long term speaking, I wasn't worried about the dividend. I wasn't, you know, investing for the dividend. It was really more so. I felt the company wasn't great by at the time. And until this whole situation happened, I mean, this is a black swan event that comes out of nowhere. They were a good company, that being said, you know, you look at it now and this is kind of hurt them quite a bit. I'll maintain my position as it is right now, and eventually this yield probably will go back up to this $2 annually. But, you know, currently speaking, this yield is almost definitely gonna be cut because 16% is not maintainable, especially at 140% payout ratio. Anything over 80 or 90 is usually not gonna be maintained. Anything over 100 There's almost no way it's gonna be able to be maintained long term. Now, this E P S of 1 41 is pretty low. Generally, it's higher than that. So, you know, in the future that will probably go back up, and it's a good chance the deal will go back up. And I've still got these shares at a very low price. So, generally speaking, you know, long term I still like this company. But in the short term, this dividend will be cut. This company is gonna be hurt. But I'm already in the position at much higher than $12. There's no point in me jumping ship at this point now that I've already kind of written through a lot of losses and, you know, overall speaking, 20 years out, 10 years out, I love this company. I still think they're gonna be doing fine, but that is what I wanted to highlight in this video. Just take a glance at the payout ratio, see if you know the company's paying out or, more importantly, overextending themselves for their dividend because if they are, they're probably gonna run into some other problems, like potential dividend cut or in general, whatever it is that's causing them to not make enough money to support their dividend, they're probably gonna have to, you know, resolved that. So with all that being said, I hope you guys did get some value from this lesson and I will see you guys in the next one . 15. Earnings Reports: are you guys? So in this lesson, we're gonna be talking about earnings reports and more. So the idea of trading them generally you're not gonna want to trade a, uh, earnings report on, and you're generally not gonna want to buy a company before the earnings just because you have no idea what that earnings is gonna gonna be the company could shoot up, like in this guy's, or it could shoot down in other cases. So generally speaking, you have no advantage when it comes to buying before earnings. There's no reason to unless you're planning on purchasing the shares for the long haul. But, you know, if you bought right here, it could shoot up, they could shoot down. It's probably gonna move in a direction. But you have no insider knowledge that technically be illegal. Um, so you know, you have no advantage when it comes to earnings reports, and therefore there's really no point in going ahead and buying before earnings. The only place in which you could have an advantage is if, you know, analysts are expecting, you know, a dollar, and it just doesn't make sense to you for some reason. Maybe right now WalMart sales, I would think, would be up quite a bit. You know, if analysts were projecting a loss for Walmart or, you know, even even a low quarter for Walmart, I might think, you know, just from from browsing Walmart myself going in the stores that it's pretty difficult for them to have a a bad quarter. You know, maybe that makes me wanna invest before earnings. But at the end of the day, that's still not really any true information. It's really more so a hunch, and you really have no advantage to buying before earnings. And I wouldn't particularly suggest it in most cases. So don't think you're gonna be able to buy the shares right before earnings and then sell them the next day. That doesn't really work. Most of the time. You might win 50% in time, lose the other 50% of the time. It's not gonna make a big difference. Um, generally speaking, just by whenever you see value and sell, whenever you think a company is overvalued or continue to hold for much longer. If it's company you want to hold for 10 20 years, then you could certainly do that as well. But there's really no advantage to buying before earnings or, you know, doing anything like that. Sometimes what I will do is sell right after earnings just because sometimes, especially if you look right here earning shot almost of the 75. But then we pull all the way back down. Sometimes I might sell right at this open in the day and then buying back lower here. A lot of times there might be some overhype when it comes to earnings, and you can kind of do a little bit more of a day trade and, you know, potentially profit a small spread. But generally speaking, you don't really have a lot of advantages to trading earnings reports. So with all that being said, I will get you guys in the next lesson. 16. Rules of Thumb for Age Groups and Retirement Accounts: our guest. So in this lesson, we're gonna be talking about rule of thumb for age groups. So what I'm mostly going to be talking about is the traditional rule of thumb that most advisers will tell you. And that is, if you're saving for retirement than you know, when you're younger, you're gonna wanna have around 80% stocks and then 20% bonds. And then at around 30 years old, you might want have around 70% stocks, 30% bonds, 40 years old, you might wanna have 60% and 40% and so on. It kind of changes based on your age group, and everyone kind of has some slightly different recommendations. But I'm gonna go ahead and put up a graphic just so you guys can get an idea of what it is for each age group, and you guys can go ahead and use that to your advantage. But I will say that it also depends on your unique situation. If you were solely investing for retirement and you don't have any plans to make any big purchases other than maybe a house or a car or you know the typical things, then these rules, films are really gonna apply to you in a big way. That way, by time you get to age 50 or so. A lot of your money over 50% is probably in bonds. And then that is gonna allow you to kind of protect a lot of the money that you're going to need right when you get into retirement at around age 65. However, if you are investing in a Roth IRA or something like that for retirement. But at the same time you're looking to purchase seven or eight rental properties or say you have 10 or 15 rental properties right now and you know you're not necessarily gonna have to have this money the day you turn 65 then the rule thumbs don't exactly apply to you the same way. Just because if you don't have to touch that money at 65 then if the market were to take a huge dive and fall 30 40% the day you turn 65 well, you could kind of ride that out if you were in mostly stocks. You have the ability to ride that out since you have rental property or you know if you made a song when you were 27 you still make $4000 a month from it, or whatever it may be, anything like that is kind of give you a little bit more flexibility and is going to allow you to invest Maurin stocks at an older age. But as a quick shortcut, their actual mutual funds set up by pretty much every single mutual fund company out there , and they basically have target retirement years. So you just buy this fund if you're planning on retiring in 2065 that will essentially be handled for you in terms of being able to retire 2065 and it's fairly full proof that being said, you know that might not be the best option. If you do have more flexibility in when exactly you're gonna need this money or if you're just saving this money and you plan to give it to your kids one day or you plan to give it to them when you die or something to keep it all in stocks, it doesn't matter. But that's essentially what I wanted to make. The point of in here is pay attention to that graphic if you are a regular person. But if you do have a lot of income aside from or your earned income that could allow you to be a little bit more flexible as toe when you would need this money, then you know that rule of thumb really isn't going to apply to you as much and might not be the best option. And next in this video, I wanted to talk about Roth IRAs, IRAs and 401 case. So when it comes to 41 case, this is essentially an investment account that if you contribute a certain percentage of your income, your employer will match up to a certain percentage and basically give you free money. So I believe the numbers 59 a half years old. So if you are not that old and you won't be able to take any money out of this account without paying a penalty, however, there is a lot of free money that your employer is gonna give you. And pretty much I and every other person you will ever hear about investing says that you should absolutely take advantage of a 41 k and contribute the absolute maximum amount that you can, but you generally have to have an employer to go ahead and get a 401 K So if you're self employed, or if you already maxed out your for a one K and you know you still have an additional 5 $6000 a year that you would like to put away for retirement, then you also have the option of a Roth IRA or a standard IRA. There's no free money like there is with the 401 K But if you're self employed, you still have this option. Unless you make more than $127,000 I think it is. You have to look this up. But all this information is somewhat changing here and there, especially over the long term. So, you know, some of this might not be entirely accurate, but I want to say it's 100 and $27,000. If you make more than that, then you actually cannot get a Roth Ira. You will have to get a backdoor Roth IRA, which is a whole. Another thing I'm gonna assume that doesn't apply to anyone here. But, you know, if you do find yourself with the need of getting a backdoor Roth IRA, I believe you need to contact a lawyer, and you probably should get a financial adviser and things like that just because they're gonna know how to set this up that will essentially give you a place where you can still invest. But when it comes down to a Roth IRA, you can essentially contribute to this account, and the money is not tax free. But anything that you pull out in the future is tax free. So if you contribute $5000 today and then it grows to 10,000 by time you retire. That $10,000 is tax for tea, and with this account you can actually take out any of your contributions. But it's very important to know that you cannot take out any of the gains without a penalty as well, like with the 41 K So if that account you put in $5000 it grows to 6000 you can take the 5000 out at any time. He cannot take out the $1000 of gains without paying a penalty of, I think, 10%. However, if you do take money out of this account, there are limits per year for pretty much both of these retirement accounts, and I believe it's $6000. That's the maximum amount you can put in per year. So if you take $5000 out, you cannot put that back in. Obviously, you can put that 5000 back in, but that year you can only contribute one more $1000 so you can't borrow the money from the account for two months and then just throw it back in there and then still make a $6000 addition. This year, only $6000 can go into the account this year. So on the flip side we have an IRA, which a lot of the same rules apply. Except for any contributions that you make. You can actually write off your taxes each year, but you cannot withdraw all this money tax free at any time. I could be wrong about this, but I think you can still actually take out the contributions at any time. You'll just have to pay the tax on them and you don't have to pay a penalty on anything other than the gains in the account. However, when it comes down to retirement, this money is still not tax free. So you know when you're 72 years old, if you have a $1,000,000 you take 20,000 out you to pay taxes on $20,000 instead of just getting $20,000 in tax free money like you would with the Roth IRA. In the end, neither of these really make a big difference. I think the Roth IRA comes out a little bit ahead of the IRA, generally speaking, but we're talking tiny, tiny, tiny little pieces of a percent, so it's not gonna make a big difference which way you go. And I would highly recommend talking to a tax professional as well as a financial planner before deciding on account. But I didn't want to make you guys aware of these things for your long term investing goals . So that's all I'm gonna cover in this lesson, and I will see you guys in the next one 17. Taxes and DRIPS: our guys. So in this lesson, we're gonna be talking about some tax tips and things like that. So to start off, we're gonna be talking about capital gains. Verse is regular income. So generally, when you buy an investment, if you buy a share of something for $10 you sell it for $15 you would have a capital gain of $5. However, when it comes down to taxes, they consider any short term capital gains to be ordinary income. And therefore, instead of being taxed at the current 15% tax rate, you would be taxed at your regular income, which is generally going to be higher. That being said, if you were to buy this in January 1st of 2000 and 20 and you sold this January 2nd of 2000 and 21 you held it for more than one year, at which point it is considered a long term capital gains where it would be taxed at the standard capital gains rate of 15%. That being said, I think there actually is a 0% capital gains tax if you are, you know, on a very low income threshold and I think it actually goes up to 20% if you make over, like, $400,000 a year or something. So, you know, some of these numbers might not be right in the tax laws, definitely subject to change. So, you know, I'm definitely not a tax professional or anything by that means. So you should certainly consult a c p. A or something like that in your state. So, you know, you know exactly what it is to do and not only your state, but also what the unit current status is for the federal tax rate. But I did want to highlight that. This is one of the advantages toe holding an investment for more than one year and really long term investing in general, you do get a tax break, whereas if you were day trading or if you were holding these investments for any time under one year, then you're probably not gonna have any kind of tax benefit, and it's just gonna be treated as ordinary income. Now. Also want to say that if you're day trading or taking a lot of trades in one year and you follow your own taxes, that's gonna be a real issue for you, and it's very difficult, and I don't entirely recommend it. It's a real pain when tax season comes just speaking from personal experience. But next, what I want to talk about is a dividend reinvestment plan, and what the's basically do is allow you to reinvest your dividends from a stock back into that same stock without you ever coming in contact with that money. Because if you come in contact with that money, then you have to pay taxes on it, at which point you would actually wind up paying your regular income rate on those taxes. Not the capital gains, because dividends are taxed as ordinary income, whereas a dividend reinvestment plan will allow you to basically automatically invest those dividends straight back into that stock without you ever coming in contact with it and therefore never having to pay taxes on it. And then you can actually be text as capital gains very long time in the future. Lastly, I want to talk about managed portfolios. If you guys use any kind of company like anyone finance or a corns or you know any of these companies, they're every now and again going to re balance your portfolio, basically meaning they're going to sell some sections of assets, and they're gonna buy more of other types of assets when they do this. This is going to cause a tax action. So most of the time, they won't do this more than one time a year just because you don't want to have a bunch of , you know taxable actions in your account. But this also works if you have a financial planner. Or I believe some mutual funds also work like this, where you'll essentially have to pay tax for something that you might not have even been aware was gonna happen. So it might be worth reading into that to make sure that you don't have any taxable actions that are gonna happen and kind of create more taxes for you, Really. But this was a little bit of a short lesson just because I am not a C p a by any means shape, form or fashion. And I really don't have so much tax advice for you guys, really, just stuff that I know from experience and having done my own taxes in regards to trading and investing and it's not fun. So if I could save you guys any time or money when it comes to taxes, then I think this video was a very helpful. So with all that being said, I will get you guys in the next lesson. 18. Don't Get Scared: our guest. So in this lesson, we're gonna be talking about one of the absolute, most important aspects of long term investing, and that is not getting scared out of the market. You hear so many people talk about how they lost money in 2000 and eight or 2009. Or really, any of these big financial collapse is the problem. Here is when it comes to the stock market or even real estate. The only people who lost money in 2008 in 2009 were the ones who sold when the market was down. Now, when it comes to something very risky, assets like options or even if you were trying to flip a house, then obviously you might have to sell at which once you would kind of have to take on some losses if you were in the middle of flipping a house when the housing market crash, we're still planning on selling that house. In the short term, you probably don't have the ability to hold it for 45 years. You have to sell it and take a 30 $40,000 loss. And if you're doing that with 56 houses at a time. All of a sudden, you find yourself with, you know, maybe 152 $100,000 in losses in one year. Options have an expiration date on them, so you only have so much time to make money on that option before it expires. So, you know, if you were trading options or something like that, she could definitely take some short term losses. Or even if you were investing in some very long term options. You know, one or two year expiration dates out, you still could easily end up losing money on those options. But when it comes down to stocks, there's no expiration date. And unless you need that money for some reason, then there's nothing forcing you to sell those shares. Just cause you bought them for $80 they're trading at $8 right now doesn't mean you took a 90% loss. It just means you have a 90% loss. Currently, lungs you hold onto their shares. Maybe in five years there, 120%. So this is really the main point that I wanted to make in this video is the only people who lost money are the ones who sold the bottom, and the people who bought at the bottom were even held their shares through the bottom and added a little more. They made two or three times their money. So when it comes down to big economic collapses or, you know, huge stock market selloffs don't sell at the bottom, it's just that simple. As long as you don't do that. The stock market is a very safe investment. But you hear a lot of people say they're never gonna invest in the stock market again because they lost all their money. You only lost all your money because you got scared and he sold out at the bottom. Or occasionally you needed that money and you had to sell out at the bottom. But that's pretty rare to see in the stock market. So if you're investing for the long term 5 16 years out, you shouldn't really be worried of any large collapse or anything like that. In fact, you should somewhat welcome a large collapse just because it creates a great buying opportunity. Most of the time when the market falls 30 40% in one year. It's back up 20 plus within the next year, usually back at zero within 2 to 3 years. And often times you have huge gains going in 45 years if you were to have bought at the bottom of that huge drop. So generally speaking, I invite giant drops or even Pullbacks or any kind of drops like that. I invite them. I love them. I continue to buy more of, you know, pretty much all of my positions throughout times like that. Currently, we're going through a large stock market dropped due to the Corona virus pandemic. I've bought over $10,000 worth of stocks in the last week or two. I'll hold those for five years if I need to. I'll sell them in a month if I want to, and if it makes sense. But at the end of the day, I am buying throughout the bottom of this and pretty this I was actually piling up a lot of cash because I kind of was expecting something like this. In fact, I don't mean to call myself a real market wizard or anything, but I did sell off about half of my entire portfolio the day after the peak of the most recent bull market. And then the market started to drop very large about three days later and were now sitting at about 20% losses. But we were sitting at one point. In fact, when I started filming this course, we were sitting at closer to 35% losses. But point being, I was buying all the way down. I'm still buying right now, and as of filming this right now, I think we're actually going to see another drop. But only time will tell on that. But you know, if that happens, I'll probably drop another $10,000 into the market. So that's kind of old point here is. Do not get scared out at the bottom. If the stock market has fallen a lot, that is the worst time to sell your shares. In fact, you should probably be buying Maura if it is at all possible. So with all that being said, I hope you guys did get some value from this lesson and I will see you guys in the next one 19. Personal Debt and Investing: our guys. So in this lesson, we're gonna be talking about debt when it comes to investing, so you'll see a lot of brokerages offer margin, which is essentially where you and a lot of cases can double your account value. So there's a lot of brokerages out there, which will allow you to buy up to your current account value in margin. So if you had $2000 in your account, you could buy up to $4000 worth of stocks, 2000 of it being on margin, and you would pay a interest rate of I've seen the lowest as two or 3% and a lot of brokerages or closer to eight or 9%. But they will essentially allow you to take debt out, which you can then use in order to invest in stocks. I think this is an absolutely terrible idea. Do not do it almost, ever. I mean, they're very, very, very, very few scenarios in which I would say this might be a good idea, because a lot of people have this idea that ate the market returns 10% a year from only paying eight. Then I could make 2%. I can basically make the difference in the interest rate and the 10% that the market generally returns. The problem with this is that debt has pretty much a zero standard deviation. That debt is gonna be there, whether you make money or not, that 8% is every single day. That 8% is constant and it's 8%. It's a defined cost is going to be there. Where is the 10% the market returns? Might be 20 this year Might be negative. 20 might before might be. Three Might be negative. Five might be 12. The market is very sporadic. Sure, on average, over a long period of time, it returns 10% a year. But when it comes to short term, it does not. And you could find yourself very easily in an overly leverage position, at which point you'll have margin calls and you'll have to sell out sometimes at the bottom , which you do not want to do as we just spoke about in the last video. So I would never use margin from one of your brokers, pretty much ever. There's only one scenario in which I personally may use it. And I'm not gonna tell you what that is on this course just because it's not something I would recommend to really anyone you know, I do my own research, and that's my own money that I worked hard for. I'm not going to give you guys a thesis or basis of you know, when I might do it. Just because you worked hard for your money, you shouldn't invest it or take out debt against it based on the opinion of someone else. However, if there is a scenario that you you want to go against this advice and use margin than by all means, you do have the ability to do that. And I am telling you that there is a scenario in which I would use margin, but it's pretty slim and very, very, very, very rarely happens. So you know, for the most part, stay away from margin. Do not use it because it is a defined cost. Where's your return eyes not guaranteed or defined, especially in the short term Now, this also applies to taking out debt on something else in your life so that you can use the cash that you would have had from that to invest. So, you know you want to go buy a $30,000 car, you've got $30,000. Should ugo and take $30,000 worth of debt on the car and then take that 30,000 and invested in the market, or just pay 30,000 for the cash and not invest in the market. You know the specific scenarios a little hard. You know, it depends. I mean, if you're trying to build credit for some other reason, some larger purchase than sure, maybe you take a few $1000 with the debt on the car or, you know, something like that. But in this scenario, you probably shouldn't be buying a $30,000 car if that's all you have. And I generally recommend paying off most debts that are not a mortgage before you start investing. That being said, you know, it doesn't make sense here and there. You know, if you want to take out a small amount of that on something in order to invest, I mean, maybe, I mean, it's it's a case by case basis, you know, car loans aren't that expensive. I mean, if you have good credit. You can get him for 3 to 4%. So I mean, this is something you have to decide on your own. But generally speaking, I would never recommend taking out debt on any other thing. That way you could use that money to invest pretty much for the same reason I wouldn't use margin. That being said, mortgage debt is a little different. The interest rates are very, very, very little, and a lot of times that assets gonna appreciate it close to the same rate in which your interest is so sometimes it can make sense to go ahead and, you know, invest while you still have a mortgage. But cars probably not. And credit cards. You should always pay off before investing, because the interest rates are much higher than you're gonna make for many investment. And it's a guaranteed and defined interest rate. So always pay off any kind of interest rate over, I'd say 6% always pay off before you start investing anything under 6% you're going toe kind of Think about yourself. Maybe you want to pay it off. Maybe you don't you know if it's under 3% then it's probably a mortgage, and it's by a very large amount of money. So you know that I can't say for sure in your specific scenario. Maybe you want to pay it off. You know, some of this is all going to depend on your scenario, but generally speaking, anything over 6% pay it off before you start investing. Anything under six is questionable. Anything under two, it's probably fine because it's probably a mortgage. With all that being said, that's really my opinions on debt. So I hope you guys did get some value from this lesson and I will see you guys in the next one. 20. Class Project: Alright, guys. So we're pretty much done with the course here, but I don't want to go ahead and get you guys a video about the class project. So what I want you guys to do for the class project is go out and research. Three companies go and find three companies. Maybe you shop at one of these companies often. Maybe you just sit on the computer and look up random ticker numbers. Maybe you go on the motley fully and look up. You know someone's top picks for the week or you go to YouTube and look at someone's topics . Whatever it may be, go look up and find three companies analysed the balance sheet. Look at the outlook on the company and posted in the discussion board as your three companies that you would like to consider investing in and explain why it is that you would consider investing in these companies. I generally find this to be a very effective exercise just because there could be a lot of communication between people, and I can help you guys out as well and kind of explain many why I don't think that's a good investment or why it might be a good investment. So, you know, at the end of the day, it's your heart on money. You're gonna make that investment decision, but getting the opinions of others might be helpful to your own decision. So with all that being said, I look forward to checking out your class projects and yeah. 21. Thank You!: I guess they were at the end of the course. I just want to say thank you guys for enrolling in the course and watching it all the way to the end. If you guys need any kind of additional help, feel free to reach out to me. I'm usually available on Instagram pretty easily at David Eves official or you guys can write me a message here. Either one of those waves are pretty effective ways of getting in contact with me. You can also get in contact with me on Twitter at Riel David Eves. You know, that might be a little bit longer response time than Instagram, but you know, if you guys do need any kind of additional help at all, feel free to reach out completely free. I could even set up a call with you guys and kind of go over some finer points if you need that help. So with all that being said, thank you for watching the course. And I will see you guys later. Peace