The Investing for Beginners Podcast - Your Path to Financial Freedom
IFB122: Analyzing the Growth of a Stock, Pt 2
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Dave: 00:35 All
right, folks, we’ll welcome to the Investing for Beginners podcast, episode 122
tonight we’re going to do part two of analyzing the growth of the stock. And
one of the things that are going to be a theme tonight is appearances can be
deceiving. Not all growth is equal, so you never know what you’re going to get
until you get into it. So like Forrest Gump used to say, life has a box of
chocolates; you never know what you’re going to get. So tonight I think, you
know, worst you’re going to get, but Andrew and I are going to talk a little
bit. So Andrew, once you go ahead and start us off and then we’ll chat a little
bit.
Andrew: 01:11 Yeah,
sounds good. I’m excited to hear about the example that we talked about off
air. I think that kind of ties it in nicely, and it’s, you know, we’ve been
talking about growth and, you know, if you haven’t listened to the last
episode, I would recommend doing that. But bottom line, you know, a business
grows, a stock goes higher in the stock market because it’s able to grow
earnings and profits over time. And so as an investor, there are so many
different ways, and like a box of chocolates, I guess. There are different
flavors of ways that you can try to reevaluate a stock’s growth. And what’s
frustrating is there’s never one perfect way. And you know, one, if you have
some indicator that you found this year that’s worked to help you pick stocks
that grew, maybe that, that indicator doesn’t work next year.
Andrew: 02:06 ...