How To Make Money By Avoiding This Common Investing Mistake | FAST Graphs

[@Atlassian.]

Good, wholesome comments section thus far. Good job gentlemen.

[@daveyvane]

Wholesome???😂. Yeah, that’s so important.

[@coocoocachooglin]

When Chuck talks, I listen!

[@jaybirdsupercarpenter100]

I literally say you are my mentor to other investors

[@bryanmclaughlin1048]

Same, along with some others.

[@dutchcourage433]

As always, a very clear and important lesson. Tnx CC!

[@willydear4906]

I would like to see a video on regional bank stocks. After the March scare I see value for several of the stocks. You love to see your highly respected opinion. Thanks.

[@serenacoronado7276]

I learn so much from your educational videos, thank you Chuck.

[@zohahs5276]

Chuck makes it so easy for beginner investor with his Fast graph analysis even my Dog can pick up some stocks now thanks Chuck!

[@SamuelRDemers]

Thank you Chuck for your consistent videos ! Another excellent video and valuable lesson.

[@Mannykeri]

Very helpful, thank you! Could you please do an update on Medical Properties Trust (MPW)?

[@FASTgraphs]

Nothing more to say about MPW except give it time.

[@pholda]

Thank you Chuck! You really know how to make it simple.

[@dieterfrommunich758]

Great, thank you

[@henrik4438]

Awesome content. Thank you

[@SamuelRDemers]

Chuck, as a second part of these lessons, it would be interesting to obtain your thoughts on how to evaluate and position yourself with a business with negative forecast revenue growth. I am thinking companies like WBA which was undervalued but fundamentals changed negatively. Other examples are ABBV, UPS, RHI and others. Thank you as always!

[@chuckdiezel7652]

Excellent video thanks Chuck!

[@oukastoukast]

Chuck is the real Top G

[@land7776]

excellent, thanks !

[@brandonrich4956]

Have you ever done a video on valuing airlines? From a purely PE perspective they are arguably cheap. But PE ignores the debt which makes a significant difference. AAL for example has so much debt that the book value is negative. Curious what your perspective on this is given the recent plummet in airline stocks.

[@FASTgraphs]

Airlines although similar to automotive companies with slightly better have a great deal of trouble sustaining earnings growth over the long run. They occasionally have spurts like Delta or Southwest, but typically the operating results are very sketchy. American Airlines is a classic example. So to answer your question I don't spend too much time evaluating airlines because I find it an exercise in futility. They tend to be long-term losers rather than winners. FAST Graphs clearly illustrates that. Regards, Chuck

[@martinithechobit]

Thanks uncle Chuck!.

[@daniell6303]

Hi Chuck, im not sure if this has been addressed but the prices / dates arent being updated at the same time, both american and international stocks have that issue. With this I mean some stocks show the price from a day before.

[@thankyouchris2831]

Thank you 😊

[@nstevens81e]

great video

[@dieterfrommunich758]

Mnst, no debt, nice

[@martinkural961]

Chuck, as always great lesson! I really love your passion and style, how you show things. I just would like to follow up on my comment concerning you or Colton to show us how to read 10-K / 10-Q your way in a serie of videos or longer deep dive video. I think all investors no matter level of knowledge would appreciate it. What is your opinion about it? Thank you very much for your reply and thank you for all your work.

[@FASTgraphs]

Here are links to our fast graphs value you Academy videos: kzbin.info/www/bejne/jGm6pWuFnMyrqNE&ab_channel=FASTgraphs kzbin.info/www/bejne/fZSyYWOPmLmmeas&ab_channel=FASTgraphs kzbin.info/www/bejne/ooK7lnaMmquia6M&ab_channel=FASTgraphs kzbin.info/www/bejne/jHTMmpihjrWcpLc&ab_channel=FASTgraphs kzbin.info/www/bejne/jHTMmpihjrWcpLc&ab_channel=FASTgraphs

[@TheLove1Makes]

Thanks

[@JM-sw5ql]

I took a trial of your service and tbh I was somewhat confused. Every stock I looked at seemed to have a fair value P/E of 15. I wasn't sure if I was doing this right; every stock is undervalued with a P/E of less than 15?

[@FASTgraphs]

"Never pay more than a 15 PE to buy a stock" legendary investor Ben Graham. Here is a link to an article I wrote on the subject in 2019: fastgraphs.com/blog/why-a-15-p-e-ratio-is-fair-value-for-most-companies/ furthermore, the proof is in the pudding as they say. For most companies but not all you will note that the 15 P/E ratio (the orange line) is extremely relevant to valuation reference line and level for most companies. Additionally, the 15 P/E will apply for companies with growth rates above 5% but less than 15%. Slower growing companies will often command P/E ratios less than 15 and faster growing companies will be drawn utilizing Peter Lynch's famed formula P/E ratio equal to the company's growth rate. To be clear, a 20% grower will be fairly valued with a PE of 20 etc. Finally, a 15 P/E ratio represents an earnings yield of 6.67%, earnings yield is the inverse of the P/E ratio (E/P) and that is a minimum earnings yield that an investor should expect when investing in stocks. The article explains this in greater detail. Regards, Chuck

[@markanderson980]

Chuck, for relatively high-growth companies the P/E ratio may not be the best measure of valuation. Were the growth companies profiled on this video over-valued according to the other metrics more applicable to high growth companies?

[@FASTgraphs]

The P/E ratio formula for high-growth companies is different than average growers. FAST Graphs utilizes the formula made famous by Peter Lynch PE equal to earnings growth rate like companies that grow over 15%. With that said, the P/E ratio calculated at these higher growth rates works extremely well. Look at Monster Beverage with the P/E ratio at 30 or equal to its growth rate. Global payments P/E ratio on the orange line was 17.44 again equal to the earnings growth rate. FISERV has a P/E ratio of 15.68 on the orange line once again equal to the growth rate and slightly above the 15 P/E ratio for slower growing companies. My point being that the P/E ratio equal to the earnings growth rate on the fast growing companies provided an extremely relevant valuation reference. However, it always pays to evaluate a business utilizing the other metrics as well for added insights. Regards, Chuck

[@svenhonkomp749]

no one want Paypal anymore. Good news for me and thats why i buy it!

[@AnthonyLauder]

same here - I keep buying more paypal. I now have a very large PayPal holding, with an average price of $65.27 - as the price keeps dropping, I feel pain because it is well below my average price, but after that feeling passes, my head takes over and I buy more.

[@jaybirdsupercarpenter100]

I'm trying g my best to spread the message about you and your son. Everything money and all these other 🤡 are nothing compared to my mentor fast graphs.

[@Martin_Kitahara]

Totally agree!

[@nationalnotes]

I believe the $10K in MNST in '03 would have grown to $11 million today.

[@FASTgraphs]

Actually 12.4 million

[@FASTgraphs]

MNST 12:46

[@atmavictu2995]

You might wanna upload a video in which you admit you were recommending investing on T and Wba 4 years ago. Companies are doing terrible and stocks even worse.

[@FASTgraphs]

I still own them and I'm patiently collecting dividends as these were bought as income vehicles. Capital appreciation will come in due time. Thanks for asking

[@rd9102]

Personally i don't believe in paying MORE than the historical average of the S&P, i just won't look at it, it's paying too much per $1 of earnings. That removes many companies i would like to own but when the P/E is just in ridiculous territory then what is the point, there are many many MANY stocks still available to purchase to achieve my goals without paying exorbitant amounts for a particular name.

[@FASTgraphs]

Check out my latest video posting sometime today. Regards, Chuck

[@jimjackson4256]

Growth out to 2 decimal places. Yea right.

[@FASTgraphs]

It is simple mathematics, how many decimal points would you suggest? More importantly, what was the purpose in your comment? Regards, Chuck

[@jimjackson4256]

@@FASTgraphs The fact that my comment got zero likes or responses shows to me that most of the viewers don’t know squat .That is not a personal comment about you though sir.

[@FASTgraphs]

@@jimjackson4256 okay, I did not take your comment personally, I simply did not understand what you were getting at. I'm still not sure. Regards, Chuck

[@jimjackson4256]

@@FASTgraphs What happened to my comment about Warren buffet not taking it out to 2 decimal places?

[@FASTgraphs]

​@@jimjackson4256 sorry, but I do not know what your asking?

[@deeJAYdayVEEpark7878]

Ty Chuck & FG squad 😌🤝🏼🫡💰💥🚀🌜