I just uploaded the spreadsheets I used in this video to my Patreon. My Patreon is where I will be uploading all of my analysis tools and spreadsheets. Check it out here: www.patreon.com/user?u=38414104
@Longtack55 Жыл бұрын
AAPL holder here, and thanks for the refresher. I'll make some comparisons for the last few years.
@genius_idiot76183 жыл бұрын
Thanks. Came across your videos over the weekend and was curious if there would be a BS video soon. Great content. Keep up the good work. These videos are extremely important us little investors.
@InvestorCenter3 жыл бұрын
You may be a “little” investor now, but I’m trying to make you a big time investor!!!
@yomi0013 жыл бұрын
Great explanations! I love that you use real-world examples to help us understand the concepts.
@InvestorCenter3 жыл бұрын
Thank you! Glad you found the video helpful!
@singhmaster42 жыл бұрын
That was good. I couldn't wrap my head around some of it because of the terminology but if I brush up on it I will understand it 100%. I will save this video in my list. Thanks!
@InvestorCenter2 жыл бұрын
Glad you enjoyed the video! Watching it a few times and you will learn more each time
@singhmaster42 жыл бұрын
@@InvestorCenter Is there a video you can refer to where I can learn this in depth? Should I look for videos focused on accounting? I have also subscribed to your channel.
@yeswecan43122 жыл бұрын
I would be very interested if you could do a benchmark analysis. What is a “good” ROE in different industries, What’s a good net margin? What’s a good, gross margin, etc.
@ethanstraight33312 жыл бұрын
I would recommend doing this yourself for practice. Fairly simply math here and also good practice looking at different firms balance sheets.
@FutbolHeritage2 жыл бұрын
You are really teaching people true investing and not just ‘good to ear’ statements
@ponzianomanning30712 жыл бұрын
Fantastic explanation! I can't Waite to watch Income statement.
@InvestorCenter2 жыл бұрын
Thank you!
@manylch796410 ай бұрын
Excellent clear and concise explanation ... bravo
@dbsk06 Жыл бұрын
11:43 is this a large net debt figure or not (compare with EBITDA, proxy for CFO) and look at peers in same industry
@BBFletcher42022 жыл бұрын
Can listen to you all day. Thanks again. 🙌🏾
@InvestorCenter2 жыл бұрын
Glad you enjoyed the video!
@Redeemed_marine_696 ай бұрын
Thank you so much for the videos! All this stuff finally makes sense to me now! I’ve always been daunted at everything i start out in so that’s not saying much but really thank you for showing me this isn’t rocket science. Actually looks like it could be pretty fun 😄
@focusrelax88382 жыл бұрын
Really good, I like what you considered most important to look at the balance sheet and the ROE and also ROC. This kind of metrics on what’s worth looking at, what’s the most important and how to calculate and also if the higher the better or the lower the better it’s really good info you share for those who are self learning 🙏
@focusrelax88382 жыл бұрын
Peter lynch had something about it should be 70% at least , I think he talked about debt to equity that equity should at least be 70% higher than debt to consider it good, I think it was in his book beating the street, I need to reread it .
@amitparikh83402 жыл бұрын
Excellent resource. TY.
@simon693213 күн бұрын
Very informative! Can you recommend a website that provides the balance sheet information used in this video in a simple and easy to digest way?
@GustavoSN Жыл бұрын
9:49 Why do you ignore accounts payable and other current and non current liabilities when calculating the "true debt" of the company?
@garrettwilliams69082 жыл бұрын
Nice video. A bit of an add-on, I do feel ROA is generally a better path to analyzing a firm's profitability over ROE, as it shows how efficient today's assets are at generating returns and avoids the potential manipulation of a firm buying back shares to improve ROE
@Solopreneur-f5q2 жыл бұрын
Spot on.
@MuhammadRafiuddin9 Жыл бұрын
Your are the symbol of perception Too good 👍
@giannismns Жыл бұрын
Incredible job. Just a question on 5:17. By true cash you mean free cash flow ?
@bhs08002 Жыл бұрын
Instant subscribe. Great video!
@fresh2def9733 жыл бұрын
Awesome educational content. You're killing it.
@InvestorCenter3 жыл бұрын
Thank you, Jonathan!
@MoneyMathai5 ай бұрын
Thank you so much for this. Really helpful
@Txyleo2 жыл бұрын
Excellent work 👍
@Dylanwindellor7663 жыл бұрын
Thank you for explained as an easily to understand for starting to investment in stock market it makes me to realize about before investing that you need to know about basically in stock. 👍
@sigmadaddy1063 жыл бұрын
Hi, great video and great channel! 12:04 Why do you use EBITDA to calculate whether it's possible to support the debt? Is the influence of other CapEx and taxes not significant? What do you think about using FCF to estimate the possibility to take on additional debt in the future for leverage if the business supports it? Can we, with this logic, use FCF estimates along with cash and cash equivalents to estimate a margin of safety on the existing debt? Thanks in advance!
@InvestorCenter3 жыл бұрын
Great question! The investment industry uses EBITDA but I personally think that EEBITDA minus Capex is a better metric to use and is a more conservative analysis.
@InvestorCenter3 жыл бұрын
And just to follow up, the cash and cash equivalents is already factored into the denominator of the equation. The “net debt” number factors in cash the company has
@hodoprime3 жыл бұрын
I would rather use EBIT. Interest can be restructured. Debt is paid before taxes(thus interest is prioritized over tax). DA gives you a good idea of capital requirements to keep a company afloat so that need to remain in the calculation. Capex can vastly exceed maintenance levels so I would not use capex or FCF.
@jbrochon95562 жыл бұрын
Thank you for the great content, I learned a lot. However, there is someting I don't understand. When I look at the Balance sheet for Apple using my bank web site some of the amounts match but have a totally different terminology. EX: Commercial Paper is called Notes payable / Short term debt". Why is there different terminology ? Another question I have is that some of the amounts you mention I just cant find them in the balance sheet. Do pltforms have different interpretations ?
@KP-uj1wf3 жыл бұрын
Thx once again for your wonderful videos… so clear and easy to understand!
@InvestorCenter3 жыл бұрын
Glad you enjoyed the video 😊
@KP-uj1wf3 жыл бұрын
@@InvestorCenter I also went back and viewed your Cash Flow statement video. Another 10/10! I now use ‘Free Cash Flow Yield’ in my analysis. I find it very interesting when you compare companies in the same sector. It really shows which are the winners in that sector. Thx again!
@kamaldas13383 жыл бұрын
Exciting explanation 👌!Keep up the good work 👍
@InvestorCenter3 жыл бұрын
Thanks a lot 😊
@AR-pd3zu2 жыл бұрын
Excellent video, thanks so much it was very instructive.
@Sglingani2 жыл бұрын
Fantastic video thanks for that
@InvestorCenter2 жыл бұрын
Glad it was helpful!
@ryasaw5193 жыл бұрын
Thank you so much, I love your channel !
@InvestorCenter3 жыл бұрын
Thank you for the kind comment 😊
@thestudentofdhandho53022 жыл бұрын
Thanks for the insightful video. I recall Buffett & Munger decrying EBITDA as a suboptimal measure of genuine profitability as depreciation increases capex. What disadvantage do you see to using Net Debt to EBIT as an alternative?
@InvestorCenter2 жыл бұрын
That is true. I personally think “owners earnings” is more relevant. This is a term that Buffett created. It is EBITDA - capital expenditures. It gives a more realistic view of a company’s ability to service debt while continuing to grow/maintain the businesses operations
@thestudentofdhandho53022 жыл бұрын
@@InvestorCenter oh that’s perfect. Thanks for the tip - I’ll add the net debt to owner’s earnings ratio to my analysis model
@kevinkant68173 жыл бұрын
Another great video, thanks 🙏
@InvestorCenter3 жыл бұрын
Thank you!!! 😊
@leochen8872 жыл бұрын
FWIW, I slow the Playback speed from Normal to 0.75. This allows me to better absorb the material on my initial view of her video. And of course, I go back to her videos from time to time because I discover insights that I missed in the first iteration. So I guess that makes me a slow learner. But I'm okay with that. I'm a retired aerospace engineer who dedicated my career to the development of Advanced Combat Aircraft and our maintaining Air Superiority. Like a financial analyst, I also was trained to view Data as Being Everything and that Everything Is Data, with Balance Sheets being just one source of information/data. (Engineers do look at a vendor's balance sheet when we're trying to assess whether they are a risk.)
@gauravthadanii Жыл бұрын
lol i watch at 1.25
@jirehllc17933 жыл бұрын
THANK YOU! Are you available as a guest speaker for Groups on a zoom meeting?
@chrisa.99772 жыл бұрын
Where does common stock and preferred stock?
@carloslongo5311 ай бұрын
ROE can be inflated by debt, though. Wouldn't it be better to use ROIC instead? By the way, how do you calculate ROIC? I know there are multiple ways that investors use. Like EBIT - Taxes / Equity + total debt +total operating leases - marketable securities (invested capital). While others just do EBIT / Equity + Net debt (or -Net cash)
@darylallen2485 Жыл бұрын
1:08 - I don't agree with this. If you take out a loan, its a liability, but the cash you have from the loan is also an asset. If assets and liabilities are opposites, why can they be represented as an asset and liability at the same time on a balance sheet?
@louiecutamora23882 жыл бұрын
Hello investor center. Just wanna ask. Your computation for true debt is adding loans ( commercial and terms debts ). Can you please tell, what happen to accounts payable and other current liab. why this is not part of your true debt. please. Thanks
@InvestorCenter2 жыл бұрын
Very good question! Because those are short term in nature. If I were to include accounts payable and other current liabilities, I would also have to include accounts receivable and other current assets.
@felipe7413 жыл бұрын
Amazing. More like this please 🙏🙏
@wunjo85869 ай бұрын
Hi! Can you explain where I can find the Gross Property Plant & Equipment? thank you!
@parmarpreyash6832 жыл бұрын
Awesome like to watch more like that
@abasembatya Жыл бұрын
I think you can as well use a 5w led bulb??? Thanks for the project
@KP-uj1wf3 жыл бұрын
Hi again. Are their any specific ratios you use to review and analyze REIT’s? Thx
@johnpatrick3458 Жыл бұрын
You are great! Thank you!
@pfuiteufel13852 жыл бұрын
Thank you for your work and explanations, very much appreciate it. However, I don't understand why net-debt doesn't account for payables, liabilities and such. Isn't one being too generous with regards to a companies solvency that way? Thanks in advance.
@davidngo8229 Жыл бұрын
Hi @InvestorCenter, I have a question about calculating the numbers. How come you only select certain numbers to calculate? Why not take the totals of each? Example, in Liabilities, you only choose Commercial Paper, Term Debt Current and Term Debt Non-Current. Why not take total current liabilities and total liabilities numbers?
@kk_3354 Жыл бұрын
Because those are the debts you are obligated to pay first, you could go default if you don’t pay
@gauravthadanii Жыл бұрын
@@kk_3354 also because those are the debts you pay with your cash others not necessarily
@jeremy31953 жыл бұрын
I saw the shareholders' equity of some company are negative (e.g. MSCI), what does it mean? and why will it happen?
@prashanthkoundinya83853 жыл бұрын
Nice explanation, keep it coming
@InvestorCenter3 жыл бұрын
Thanks! I’m looking forward to putting out more helpful videos for you guys!
@lauravolkman3 жыл бұрын
Great video as always!
@InvestorCenter3 жыл бұрын
Thank you, Laura! Glad you enjoyed the video :)
@dbsk06 Жыл бұрын
Isn’t ROE based on book value not accurate if it differs from market value significantly ?
@rabiehmoussa98543 жыл бұрын
Super cool channel ! Keep it up
@InvestorCenter3 жыл бұрын
Thank you so much!
@diamondgeezertunes3 жыл бұрын
Excellent content ...
@rainmaker7043 жыл бұрын
Great vid!
@InvestorCenter3 жыл бұрын
Thank you 😊
@lazardjurovic28833 жыл бұрын
Great stuff. I have a question for you. What do you think about investment analyst job? Do you guys work long shifts? Is it a high-paid job?
@InvestorCenter3 жыл бұрын
Compared to the standard 35-40 hour work week, it is long hours. However, not nearly as long of hours as compared to investment bankers. In terms of compensation, I can’t complain lol
@ameshshamike89065 ай бұрын
Excellent explain
@Faloudelphia2 жыл бұрын
Very well. I wish I could have lunch with the person who did this presentation.
@jimmyau562 жыл бұрын
where do you look for balance sheets? on the companies website?
@kidze733 жыл бұрын
hi, how do I calculate how much a company reinvests its profit?
@BSI_Inc.2 жыл бұрын
I'd like to ask something. What can count as true debts and true cash?
@monnombre65473 жыл бұрын
thank you for this video!!!!!!
@InvestorCenter3 жыл бұрын
You are welcome!!!!!!!!!!!!!
@JackCasablanca-painter3 жыл бұрын
Thank you! Very helpful video. But where can we find a company's balance sheet? And cash flow statement and income statements too? Thanks!
@InvestorCenter3 жыл бұрын
Google the company’s name and “annual report” and you will be able to find it on the company’s website
@JackCasablanca-painter3 жыл бұрын
@@InvestorCenter Hey, thanks so much! I didn't know it was public info.
@mtoporovsky Жыл бұрын
Masterworks is not stock...where u get info? For analyes?
@reeceshaw97173 жыл бұрын
This is a great video even though I got baited with Warren Buffets face
@joseguerrero2221 Жыл бұрын
Hi, can anyone please explain to me what "Book Value" means? I'm reading Benjamin Graham's book The Intelligent Investor and can't figure out what it means. I'm pretty sure I didn't skip anything. And the internet seems to give me different definitions as to what it means.
@cz78863 жыл бұрын
Pure Gold!
@yakopro492 жыл бұрын
Warren Buffet your a Legend. If I were a marvel top executive, I would make you a heroic character in a video game or movie.
@LifeMasteryPodcastStevenArecco2 жыл бұрын
@ 7min 45 sec. apples PP&E % of sales is 9.275% not 11% unless my math is wrong. Please verify?
@NotNoseBlind3 жыл бұрын
Oracle of Omaha he the truth - this video is a must watch
@AR-pd3zu2 жыл бұрын
someone can help me please, 7:40 sales: 365.817, Where does the sales result appear? because I did not see it on the balance sheet. (365.817).. thank so much if someone can help me with that.
@YAY11LLI8 ай бұрын
Amazing!
@ralphtozier96823 жыл бұрын
What do you do with good will? It seems like it should not ever be on a balance sheet since it is such a wild guess.
@InvestorCenter3 жыл бұрын
You are right. Personally, I ignore goodwill
@georgeturner6244 Жыл бұрын
Reduce shown equity by goodwill is a useful approach to me.
@Gitohandro3 жыл бұрын
Do you offer consultations?
@IknowIamafool5 ай бұрын
Thanks so much.
@giuseppesiragusass3 жыл бұрын
Why do we use net debt/ebitda and not debt/earnings?
@InvestorCenter3 жыл бұрын
Good question. This is because earnings can be distorted due to accounting. While EBITDA is a more close approximation of a company's cash it generates to be able to pay its debt
@Korocoran3 жыл бұрын
Excellent !
@InvestorCenter3 жыл бұрын
Thank you!
@airepublic98642 жыл бұрын
Can it be programmed?
@hedwegg2 жыл бұрын
Stocks! Balance Sheet!
@anhnguyenhong8770 Жыл бұрын
You need to study into Balance Sheet like Mr. Buffett.
@financialwisdom4323 жыл бұрын
this is heavy stuff. I have to watch this probably like 3 times
@williamdavis99432 жыл бұрын
He doesn't give this advice for free you can believe that. Even when he is not out to make money he is making money.
@zhyarjalal4179 Жыл бұрын
can i pay a professional financial analyst to analyze the whole company statements for me?
@vasanthakumarnagaraj3083 жыл бұрын
You awesome 🙂...
@InvestorCenter3 жыл бұрын
Thank you! 😊
@dbsk06 Жыл бұрын
4:59 true cash
@candyfloss1843 жыл бұрын
Thank you
@InvestorCenter3 жыл бұрын
Thank you! Long time not seeing a comment from you, friend!
@T_m_m1703 жыл бұрын
I follow the American coordinator. I think someone in America will brake on if anyone goes too far.
@mustafaalwan65233 жыл бұрын
Apple has much higher ROE because the huge amount of intangiblity i.e brand name and customer loyalty . You take that of the equation and you can calculate the buffet's return which how much capital is able to generate without intangible asset . Furthermore you can deduce that how much the intangiblity is an important factor in the case of apple of KO.
@gauravthadanii Жыл бұрын
hey can you explain in more detail, cause i am a little confused. how does intangible assets affect this?
@joncarr12003 жыл бұрын
This is what they will never teach us in school. At least, not unless you take a specific class.
@InvestorCenter3 жыл бұрын
Thank you, Jon! I’m glad I can be helpful:)
@bigthing39842 жыл бұрын
Everything is good but if you could explain it at a slower pace, people could understand better having some space to think for few seconds.
@wesleyg24033 жыл бұрын
Fun fact: in dutch balance sheets, the least liquid asset is on top and the most liquid asset is on the bottom. Same for the passiva side (forgot the name for the other side of the balance sheet in english).
@WPaKFamily2 жыл бұрын
That was a huge blunder at the end comparing Apple and Samsung's ROE. Apple is loaded way more on debt (leveraged) than Samsung is. If Apple had at most a Debt/Equity Ratio of 1, their ROE would be about 60% or less (which is still a lot). However, it's not as simple as saying just adjust their D/E ratio. Their earnings since 2017 to ttm has been supported by lots of debt. So, really the ROE for Apple would be only a little more than Samsung's.
@gauravthadanii Жыл бұрын
yeah, I think I get your point. a better metric would be ROIC to measure the growth. which factors in both, debt and equity.
@WPaKFamily Жыл бұрын
@@gauravthadanii yep
@carlosnava23492 жыл бұрын
Good
@businessmindedwolf7303 жыл бұрын
Great
@InvestorCenter3 жыл бұрын
😊
@NoW_Is_TimE Жыл бұрын
5:00 you mean MIllions
@owengoerk91715 ай бұрын
Didn't Munger call EBITDA bullshit earnings?
@andrey49702 жыл бұрын
Appreciate
@InvestorCenter2 жыл бұрын
Thank you!
@torhikekhoudoian29794 күн бұрын
THX
@TheWorkingClassroom3 жыл бұрын
EBITDA is not a good proxy for cash flow. Please don't tell people that it is.
@wuziwu8148 Жыл бұрын
I thought I was supposed to learn how to analyze a balance sheet like a hedge fund manager? Okay.. Then why are we going back to ABC's of investing with what an asset and liability are.....? Not even 2 minutes into the video and I can't take the title seriously.
@SkankHuntForty2 Жыл бұрын
Hey, BABA's balance sheet looked really good, didn't it? It definitely fooled Charlie Munger. Thanks again for the shit call on BABA, Charlie.