Thanks for watching! Download a free copy of Buffett’s rules of thumb here: longtermmindset.co/buffett
@WillN2Go1Ай бұрын
This is a terrific video. I didn't go to business school, read Warren Buffett extensively. These rules were always mentioned but never really explained. What might make a good video would be to look at Apple after the introduction of the iPhone in 2007. I invested in 2008, rode out the crash no problem, did great over many years. The first few years of my investment in Apple ALL the business news I found just repeated over and over again, "Apple has almost the entire 35% of the high end cell phone business in the U.S. Who else can they sell iPhones to? As though they'd saturated the entire potential market. I still had a Finnish Nokia. This just seemed odd. I wondered, am I missing something? One of my main reasons for investing in Apple was I expected them to expand iPhone sales around the world. (I had no clue about how to analyze their balance sheet.) So then Buffett and Berkshire in 2012 invested in IBM. Did that follow these rules of thumb? (My reaction was to wonder, did I miss something? Then I thought, no, maybe that's business computers which was separate from smartphones.) In 2016 Buffett said IBM had been a mistake, sold their position off at a loss, and then invested in Apple. (Did the Rules apply to either of these?) And in about 2019 Buffett said he wished Berkshire could buy all of Apple. And the recent Berkshire sell off of a significant portion of their position in Apple. Did that follow the Rules? In no way am I trying to say these Rules aren't powerful, just that until now I didn't have a clue how to apply them.
@Vvvrrrmmm5 күн бұрын
Stock buy backs just seems like a lazy strategy to increase value, after completion it leaves the market available stock reduced, increasing positive and negative market swings, see Arm as an extreme example (re limited stock available to market), and shows the amount of cash no longer available to deliver strategic investment in future products and services, the cash was invested in stock, not invested in future growth initiatives, be it R&D or other investments, like staff, yes they create value, not just an expense line to reduce.
@Tpry2 ай бұрын
1.Cash to debt: more cash than debt 2.Debt to equity ratio : below 0.8 Preferred stock is zero 4. Retained earnings growing consistently ( even during recessions) 5. Has treasury stock ( cumulative sharebuy backs)
@slewcharles9262 ай бұрын
You missed 3 lol
@lilblackduc73122 ай бұрын
Thank you...🇺🇸 👍☕
@darcash173828 күн бұрын
@@slewcharles926too busy to watch vid rn what were they?
@jaypatel188517 күн бұрын
@@slewcharles926 3. Preferred stock is zero. (he forgot to number it.)
@hdad954 күн бұрын
About Rule #5: but there are companies with buybacks and no treasury stock. What does it mean? Shouldn't we look instead for the amount of repurchases in the cash flow statement?
@BlackbirdDH2 ай бұрын
I really love this kind of no BS straight to the point content. I am always confused what the different US balance sheet terms mean and this brought me a step closer to understanding. Thank you!
@BrianFeroldiYTАй бұрын
Glad it was helpful
@PascalH919128 күн бұрын
@@BrianFeroldiYT No bs with real time examples is 💯🔥 People pay hundreds and even thousands for this information
@tpwong5329Ай бұрын
Thanks for the straight to the point explanation. For for someone with no idea of accounting, this short video is extremely helpful.
@BrianFeroldiYTАй бұрын
Cheers!
@TUMBEX127 күн бұрын
Put simply, a clear illustration that makes it better. Good job Brian.
@alexandermayer202623 күн бұрын
You left his other prime rules 1. Read the footnotes 2. Find out about off balance sheet debt, the most diabolical financial shenanigan
@BrianFeroldiYT22 күн бұрын
Good additions
@piercarlotalenti40449 күн бұрын
Where would one find that info on a company?
@alexandermayer20269 күн бұрын
@@piercarlotalenti4044 it starts with the annual report. Buffett says if it doesn’t answer all questions, they are hiding something. Then he would interview management
@brunosilvestre49433 күн бұрын
@@alexandermayer2026excellent !!
@mike_valueinv2 ай бұрын
In his early years, Warren Buffett concentrated heavily on balance sheet fundamentals, often seeking undervalued companies with strong assets relative to their market price. Over time, his approach evolved to more focus on the quality of businesses and their long-term earnings power, recognizing that sustainable competitive advantages and robust cash flows are key drivers of superior investment returns. This shift reflects Buffett as an investor was primarily due to Charlie Munger influence and also larger amount of money under management.
@BrianFeroldiYT2 ай бұрын
Yup. Very true
@rokker333Ай бұрын
This. He started strongly based on ideas of his tutor Ben Graham. But shifted into emphasizing the business value of a company. Never only rely on fundamentals because they only reflect the past. It is only one column in evaluating a business. Buffet is addressing business value with his "moat" theory and also with his "stay in your field of competence".
@mike_valueinvАй бұрын
@@rokker333 in the past he was more quantitative but now prefers more quality investing.
@leorbuis902420 күн бұрын
I'm new to your channel, and I just subscribed because you got right to the point and kept your video under 10 minutes which is exactly the way to do it! Thank you!
@BrianFeroldiYT20 күн бұрын
Awesome! Thank you!
@cuhullin35393 ай бұрын
Just ran through lululemon's balance sheet with Buffett's rules of thumb and my conviction just got stronger. Thanks for the video!
@BrianFeroldiYT3 ай бұрын
Great job!
@edsontrujillo22472 ай бұрын
Long lululemon?
@drek2732 ай бұрын
I’m looking at the same stock. I have lululemon undervalued. Their balance sheet and return on capital is strong
@drek2732 ай бұрын
@edsontrujillo2247 Yes. My target is around $300-$320
@saadatkhan95832 ай бұрын
ok I am taking up the lulu challenge. Give me a minute..PE ratio is low, on the very low end of its annual price range, earnings growing each year, net profit margin is 16% (firat thing i dont like, it means there is no monopoly), ROC and ROA are very high. I would say this a strong buy, amd you can set a target of usd500 per share.
@UrbanArtCentral2 ай бұрын
Very informative. I took a course on this in uni but only understood it in theory. Now after having worked for others and started my own business, I can appreciate it for what it is.
@BrianFeroldiYT2 ай бұрын
Glad it was helpful!
@Flundercofresa5 күн бұрын
Gute Erklärung, leicht verständlich.
@ianchui77112 ай бұрын
Love this format! Please make more financial statements analysis content !
@BrianFeroldiYT2 ай бұрын
Will do!
@NRome2 ай бұрын
@@BrianFeroldiYTand create a playlist so we can go directly to it highlight 10 ten companies and some with great potienal.
@JoseRivera-uf1ug23 күн бұрын
I like this content a lot! I am learning all about finance and this helps so much, specially learning from buffet strategies! Thanks!
@BrianFeroldiYT22 күн бұрын
Glad you like them!
@ThingYouShouldKnow12123 минут бұрын
Hi there! May I know what website do you use to check any company balance sheet
@Andre_XX2 ай бұрын
Everyone likes to put "Warren Buffet" in their videos. It guarantees views.
@gaylanbishop16416 күн бұрын
It is a little confusing that in your analysis of Chipotle , in Item. #1, you use a value of 0 for debt, but for Item #2, the is a large number for debt.
@pigslefats6 күн бұрын
Yeah. He says Chipotle has a debt free balance sheet, yet there is a debt to equity ratio of>1. LOL.
@JD-im4wuАй бұрын
i think this is the most important to start looking at because it gives a good picture of the company debt + equity to asset ratios before buying in
@brainchilddesigner2 ай бұрын
Thank you for making this process so easy to follow
@BrianFeroldiYT2 ай бұрын
You are so welcome!
@franserra35869 күн бұрын
Great video man, love this stuff and the simplicity of your explanations. Keep it up!
@BrianFeroldiYT9 күн бұрын
Thanks, will do!
@MoneyMathai3 ай бұрын
Thanks for this. Very useful for beginner investors like me
@BrianFeroldiYT3 ай бұрын
Glad it was helpful!
@tommy-73-dash2 ай бұрын
@@MoneyMathai It’s always good to return to basic fundamentals in just about anything we can. For an older investor like myself, it was refreshing.
@ashahmadi3402Ай бұрын
I'm confused about the part where you said Chipotle had no debt, It states they did have an accounts payable of 197.6 in Dec 23. Accounts Payable is a type of short term debt that is owed to suppliers etc.
@codyross48927 күн бұрын
Yes but it's short term plus 203 million is a drop in the bucket of 5.2 billion so even taking that into account the cash & equivalents would still be greater than this short term debt
@sluggo3slug26 күн бұрын
Yes. And the debt/equity ratio was 1.2; which in my ignorant eyes doesn’t compute with a ZERO debt.. very confusing
@notmwangi23 күн бұрын
By debt in that context he means cash borrowings
@samherrick865622 күн бұрын
Current debt & liabilities (due in a year or less) pertain to the daily operations of the business (like a payroll loan for example). Long-term debt is considered a financing activity in a business. Although in this video long-term leases shown at 5:05 is debt and attributes to the 1.2 D/E ratio edit* op does say he doesn't consider long-term leases debt in this scenario, but in larger corporate finance we normally do.
@MrSilenceT11 күн бұрын
Extremely well explained! Bless you
@BrianFeroldiYT10 күн бұрын
Glad it was helpful!
@sk.n.930224 күн бұрын
Really excellent video, easy to the point. I learned something.
@BrianFeroldiYT23 күн бұрын
Yup
@sarfrazahmed8178Ай бұрын
Thank you for the explaining it so simply! I would like to see a few more examples of of good and bad companies. Can you please create another video?
@BrianFeroldiYTАй бұрын
Great suggestion!
@000DNJ2 ай бұрын
Very clean explanations
@BrianFeroldiYT2 ай бұрын
Glad you think so!
@mikedavis582920 күн бұрын
Don't know if you have done a video on this before, but how about one on minimum cash to invest to use an investment advisor, how to identify a good one and reasonable fees to expect to pay. Great presentations, by the way!
@BrianFeroldiYT20 күн бұрын
Noted!
@Comandertim18 күн бұрын
You are missing one of the most important fact which is „how long did it take to get the balance done and the get the auditors opinion.‘ if it takes longer than usual there are issues that most likely are not shared with the public
@MyLifeOfficial2 ай бұрын
Hi, Thanks for making the video. What's the source of these 5 rules of thumb? How have you been able to attribute these to Buffett? Which book? Which letter? Which interview? Thanks,
@uditjoshi140724 күн бұрын
Thank you for sharing this useful video message 🙏 !
@BrianFeroldiYT23 күн бұрын
Glad it was helpful!
@richardgordonАй бұрын
These videos are just amazing! I’m definitely a huge fan! Learning a lot! Many thanks 😊
@BrianFeroldiYTАй бұрын
Great to hear!
@dude296482 күн бұрын
Hey i just wanna know taht these rule of thumbs are of warren buffet really or not because i do not find him revealing these rules of thumb publicly (please reply)
@BrianFeroldiYTКүн бұрын
From the book “Warren Buffett & interpretation of financial statements”
@dude2964821 сағат бұрын
@@BrianFeroldiYT thanks bro
@showtime20715 күн бұрын
Great video. Learned something new today
@BrianFeroldiYT14 күн бұрын
Glad it was helpful!
@benjaminwells4756Ай бұрын
Hey Brian, just wanted to say great video, and thank you for providing the little working example at the end, liked and new subscriber lol
@CarlZend23 күн бұрын
Excellent piece. Informative and succinct.
@BrianFeroldiYT22 күн бұрын
Glad you liked it!
@mateocontiАй бұрын
great video. Perfectly explained and very helpful, in my case, for my soon to be degree in business adm.
@BrianFeroldiYTАй бұрын
Fantastic!
@chamindasilva31912 ай бұрын
Very good series. This is along with income statement analysis and cash flow statement analysis help to figure out the value stocks with strong Moat. Thanks.
@BrianFeroldiYT2 ай бұрын
Glad you enjoy it!
@LTVoyager23 күн бұрын
Nice video. It would be great to see a similar analysis for other business forms such as cooperatives, nonprofits, etc. so that their members can analyze how well their cooperative is being run. Obviously, not quite the same as an investor perspective, but I suspect most of the same rules apply just different terms on the balance sheet.
@BrianFeroldiYT22 күн бұрын
Thanks for the suggestion!
@LTVoyager22 күн бұрын
@@BrianFeroldiYT I admit to having an ulterior motive with this request. I am a board member of an electric cooperative who was elected just before retiring from a long career in a technology company. I worked in R&D, engineering and product development - not finance, but I learned enough along the way to be fairly proficient in things finance and accounting related. I am appalled at how most cooperatives are measured and managed. They seem to be controlled mainly by their lenders. I simply can’t imagine a traditional company or corporation who would use as one of its primary metric a ratio like MDSC. When you primary financial metric is your ability to pay back your loans, it really says who is running the cooperative, yet this is considered completely normal in the cooperative world, well in the electric cooperative world anyway. I can’t speak to cooperatives in other industries. It would be interesting to see another opinion on this as it seems that most traditional corporate finance people have no reason to even look at cooperatives and I’ve seen only one article that discusses nonprofit debt and that was from Harvard many years ago and it seems nobody ever paid attention to it. It showed clearly that carrying large debt wasn’t a financial advantage, as most cooperative manager’s claim, yet nobody pays attention. I wish someone like Warren Buffet would take a close look at cooperative financials and offer an assessment. I may be full of crap, not being a finance professional, but it just seems to me that having interest expense consume the lion’s share of your margins simply isn’t wise.
@dipaknadkarni625 күн бұрын
Thank you.
@BrianFeroldiYT5 күн бұрын
Welcome!
@saadshaikh14442 ай бұрын
it helped alot thank you so much for sharing this information i hope you earn millions of subscribers just because you are doing a great job by providing such informative knowledge
@BrianFeroldiYT2 ай бұрын
Wow, thanks!
@batak20082 ай бұрын
What’s the website you use for checking financial data, fincheck?
@MrBoiWonder26Ай бұрын
Finchat
@tepidtuna745029 күн бұрын
Finchat I believe.
@The_Quaalude24 күн бұрын
Yes
@philipvalloyas-tiongson6338Ай бұрын
Hi. Can I ask what financial website you get your data from in the video? I didn't catch the name so I couldn't Google it. Thank you very much.
@theupson22 күн бұрын
very extremely important rule of investing: if a statement is part of a filing submitted to the SEC, it's quite possibly a lie. if it isn't? it is CERTAINLY a lie.
@logo55625 күн бұрын
Where do you get this info if its a book please recommend Thank you❤❤❤
@BrianFeroldiYT5 күн бұрын
Warren Buffett & The Interpretation of Financial Statements
@Davemaloney-m1w25 күн бұрын
I've been an investor in Apple,Tesla because I strongly believe in the company. I've always believed in the stock, but now I don't know if i am to re-distribute my portfolio and put some money in Nvidia. especially now that we are experiencing a market correction.
@Davemaloney-m1w25 күн бұрын
I have also considered using an FA but I don't know how to go about it. Please, what are the steps for getting one? Like a really good one.
@Davemaloney-m1w25 күн бұрын
Thank you for the recommendation. I'll send him an email, and I hope I'm able to reach him and connect.
@Crash_Clips_24 күн бұрын
Clearly you don’t make very good choices since you support terrorists
@carlostxm_tennis24 күн бұрын
I would invest on a sp500 and live without worrying
@Crash_Clips_24 күн бұрын
@@Davemaloney-m1w clearly you make bad choices, because you support terrorists
@maxmylesone25 күн бұрын
Hello sir, would you consider Common Stocks, Bonds, Total Fixed Income Securities and/or Total Equity Securities as Cash Equivalents?
@johnmcquaid752426 күн бұрын
Awesome video. I own a few Chipotle shares; so bonus points for the analysis!
@Sacred-Heart-of-Jesus829Ай бұрын
Very helpful video. Thanks for posting!
@BrianFeroldiYTАй бұрын
Glad it was helpful!
@w1swh1Ай бұрын
Excellent, thanks Brian.
@BrianFeroldiYTАй бұрын
Glad you enjoyed it
@Sargon9495 күн бұрын
This is great information. My only gripe is that Bain pronounced especially as "exspecially" three times in this video.
@BrianFeroldiYT5 күн бұрын
One of my many, many flaws
@Sargon9494 күн бұрын
@@BrianFeroldiYT I'm just persnickety. However precision plays a big role when it comes to whom I trust on the internet, You clearly know your stuff, though. Keep doing what you're doing.
@CharlesRodgers-i7qАй бұрын
just joined your VIP group, and I'm already seeing some amazing results. Your insights are truly invaluable!
@massemassimo-f7f29 күн бұрын
Wait how can the company (chipotle) have a debt free balance sheet but Debt/Equity is 1.2? If debt is 0 debt / anything should always be 0, right? I am guessing these are two different kinds of debt but how?
@ashiqueadnan213914 күн бұрын
Long term lease on rental space. They are showing the future rent on these leases as long term liability. Check from 5:42
@Benjamin-iw8ud2 ай бұрын
You said on rule one that Chipotle has no debt, but then turn around and use the liabilities and debt/equity ratio line item for rule two. Could you explain that?
@Cruyv2 ай бұрын
Yeah I thought about that too .. unless he specifically defines what type of debt we are talking about ! Btw, in a diff comment he replied to another user mentioning that debt is "borrowings" .. so I guess he jyst means loans etc..
@BrianFeroldiYT2 ай бұрын
Chipotle’s “debt” is operating least liabilities. While that is a liability. I don’t consider it to be debt. Hence, why I excluded it from one, but included it in the other.
@gojo2522 ай бұрын
I dont undestend, they dont have to pay off long term liabilities?
@gojo2522 ай бұрын
@@BrianFeroldiYT, Hi, please whete did you find information that is lease liabilities? Whete i can find or look that information? Thank you
@MrDeathCreed2 ай бұрын
@@gojo252seems to me like they would just however you look at it it shows that a company is confidently looking to maintain its property’s therefore expanding so that would mean growth, i assume that’s why he doesn’t count that as an actual “liability”
@stephaneenglish46612 ай бұрын
This was very interesting stuff, for someone like me who’s new to investing. One question: In the Chipotle example you said they had no debt - however you later jumped to a point in their balance sheet where it showed a debt value and some debt ratios. Am I missing a subtlety in balance sheet interpretation, here?
@BrianFeroldiYTАй бұрын
Yea… this is an example of how accounting can be confusing. There’s a term called operating police liability, which many financial aggregators consider to be “debt”, hence why it’s listed as a liability. Since these are future at least payments, I do not consider them to be debt, just like I wouldn’t consider future salary payments to employees to be debt. Hope that helps.
@roconnor0121 күн бұрын
Great video, mate! Cheers from the UK.
@BrianFeroldiYT21 күн бұрын
Glad you enjoyed it!
@TechPeeves21 күн бұрын
I love this video! So is it an all or nothing? A company must have 5 checks or is there room for leeway?
@BrianFeroldiYT21 күн бұрын
No, there’s always leeway. You first need to know what the rules are before you know when you you can break them.
@McGriffman4 күн бұрын
I got lost on #5... How is -5M > 0? So +5M would be bad? I'm not certain how I could apply that concept with the (apparent) math being, uh, wonky? Could you explain further or point to a video which may help cure my ignorance? Thanx much.
@andrelovo733319 күн бұрын
Very good job !!!
@BrianFeroldiYT19 күн бұрын
Thank you! Cheers!
@miked822713 күн бұрын
Hey wise guy you earned my subscription, this is what the internet was intended for, beneficial education . Thanks 👍🏻🇺🇸👍🏻🇺🇸
@BrianFeroldiYT12 күн бұрын
Awesome, thank you!
@goldwingerppg595320 күн бұрын
I bought CMG recently on its latest pullback because I always thought it was overvalued. I was tired of missing owning a great company so I pulled the trigger and I’m up 12%-15%, however, I bought PLTR shortly after the DPO in 2022 and added multiple times since then and I’m up 97% since April and 295% since November 2022.
@Q8xOMARFUTKWКүн бұрын
what other stocks you owned recently?
@L1ndros88Ай бұрын
Thanks for the video, Brian. Can you more deeply explain why stock buyback is a negative number in the equity section? I would have thought it would be considered a positive asset, just as if the company had bought stock in a third party/external company. Where can the positive asset value of these buyback shares be found in the balance sheet?
@lyntonm5793Ай бұрын
@L1ndros88 "Can you more deeply explain why stock buyback is a negative number in the equity section?" Answer: The Equity section of a balance sheet reflects ownership. Stocks are units of external ownership. If a company buys back its shares it reduces external ownership, which shows as a negative number in the Equity section. "I would have thought it would be considered a positive asset, just as if the company had bought stock in a third party/external company." Comment: Buying back one's own shares is different from buying shares in a "third party" or external company. Buying back shares does not increase assets. Instead, liabilities are reduced (namely reduced shares outstanding). The corresponding asset entry will be a reduction in cash reserves. "Where can the positive asset value of these buyback shares be found in the balance sheet?" Answer: A share buyback has no positive impact on assets. As mentioned above, there is a negative asset impact on cash (paid out for the buyback) and a corresponding negative impact on no. of shares outstanding and, in the case study of Chipotle, a reduction in treasury stock value showing the exact value paid out.
@zawlinn33452 ай бұрын
Thank you this is educating ❤
@BrianFeroldiYT2 ай бұрын
Thanks for watching
@IknowIamafool2 ай бұрын
Thanks for the elegant explanation :)
@BrianFeroldiYT2 ай бұрын
Glad it was helpful!
@adelinogoncalves99632 ай бұрын
Great video, thank you so much!
@BrianFeroldiYT2 ай бұрын
Thanks for watching!
@janrabie18902 ай бұрын
Thank you, very interesting!
@brianwest73442 ай бұрын
but dont a lot of companies cancel treasury stock after buying the stock back? This would then show up as zero.
@BrianFeroldiYT2 ай бұрын
Yes. They also sometimes just offset retained earnings, which makes it hard to find. Still, if you see it listed, its a good sign.
@blessonsingh77442 ай бұрын
Please explain how do you agree with debt to equity of the company according to Buffet"s rule
@BrianFeroldiYT2 ай бұрын
I think it’s a good rule of thumb
@mindfactory77552 ай бұрын
Hello everyone 👋🏼 may anybody tell me which program or website he uses to look the figures? Thanks in advance
@BrianFeroldiYT2 ай бұрын
Finchat.io/brian
@valerijw499926 күн бұрын
Balances usually include 2 years data: so this would be helpful with retained earnings growth visualization - no we can't figure out if 7000 reflects growth.
@KaranButtarrАй бұрын
Amazing content !
@BrianFeroldiYTАй бұрын
Thanks!
@psestock8 күн бұрын
Love this video
@BrianFeroldiYT7 күн бұрын
Awesome! thanks for watching.
@samhalsey50512 ай бұрын
Thanks! Great! Why do you say “expecially" instead of "especially" ?
@BrianFeroldiYT2 ай бұрын
One of my many flaws….
@coffeedonutsandhomer65312 күн бұрын
GameStop has almost $5B in the bank and no long term debt except the leases on its stores. I can’t wait to look at the other metrics. It even turned a profit last year…not a big one…but still had one! 😊
@NighT-WolF852 ай бұрын
What is the difference in debts and liabilities in this case? Usually they are both the same and i've never seen a balance sheet that lists them differently.
@BrianFeroldiYT2 ай бұрын
Debt is what is borrowed and has to be paid back. Liabilities are bills that have to be paid.
@VasudevaNaidu10 күн бұрын
excellent
@BrianFeroldiYT9 күн бұрын
Thank you! Cheers!
@robertmccully27924 күн бұрын
Wonder what Berkshire rates? Would he buy his own company?
@christopherrichardwadedett410013 күн бұрын
Easy if information is accurate: Only inside connexions can truly validate a balance sheet? Payola?
@bbulliard20 күн бұрын
well done
@sahithrao2163Ай бұрын
Which tool/website that you’ve used for chipotle balance sheet
@naisi27 күн бұрын
Finchat
@niashirin11116 күн бұрын
The liability to equity ratio would depend on the type of company, some companies need to have higher liabilities, would consider it as negative
@jimd1617Ай бұрын
thank you 🤝
@BrianFeroldiYTАй бұрын
Welcome 👍
@awsohmvision2 ай бұрын
Great info, thanks!
@BrianFeroldiYT2 ай бұрын
Glad it was helpful!
@oy19952 ай бұрын
About no5, when a company buys back stocks, treasury stocks, shouldn't it show with a negative figure on the balance sheet? Suppose a company repurchases 10,000 shares of its stock at $20 per share. The treasury stock entry on the balance sheet would be: Treasury Stoc k= (10,000 shares×$20)=−$200,000 (minus) - This amount shouldn't be subtracted from the total shareholders' equity?
@BrianFeroldiYT2 ай бұрын
Correct. Treasury stock is contra-equity.
@phookaziz326 күн бұрын
What is the relative importance of this quick fundamental analysis, if by Warrens own advice for most investors, that aren’t playing on his level of monopoly, is to put their investment dollars into a passive S+P 500 fund and reinvest distributions back into it to compound. Wouldn’t the relative strengths and weaknesses of the 500 balance one another negating the need to do such granular work?
@Greg_Chase14 күн бұрын
Most important to ensure good cash flow: LOW DSO (low 'days sales outstanding') Accounts Receivable as low and short-duration as possible.
@BrianFeroldiYT13 күн бұрын
Any interest in me making a video about this?
@gptBreeze_io2 ай бұрын
00:00 Introduction and Purpose 00:32 Understanding the Balance Sheet 00:54 Rule of Thumb #1: Cash vs. Debt 01:33 Rule of Thumb #2: Debt to Equity Ratio 02:16 Rule of Thumb #3: Preferred Stock 03:00 Rule of Thumb #4: Retained Earnings Growth 03:50 Rule of Thumb #5: Treasury Stock 04:35 Analyzing Chipotle's Balance Sheet 07:01 Final Evaluation of Chipotle by GPT Breeze
@mlamta-aemg22 күн бұрын
You missed the total debt in the ratios tab? Thus the cash to debt analysis is incorrect and debt to equity ratio is 1.2 - these two ratios with debt must align.
@westinghouseforeverАй бұрын
Great channel
@BrianFeroldiYTАй бұрын
Cheers!
@agermouneАй бұрын
Thx Brian - just got into investment and this will make my decision more intelligent and confirm some of my predictions. You just earned a new subscriber!
@BrianFeroldiYTАй бұрын
Excellent!
@KP-gb8nk3 ай бұрын
Very helpful, thank you
@BrianFeroldiYT3 ай бұрын
Glad it was helpful!
@gordonanderson6173Ай бұрын
Thanks for the great information.. Just an FYI moving forward... I believe a "/" is considered a forward slash (the way the top leans) and a "\" is a back slash. I found most people confuse the two, and more than most don't even care for the differentiation, but just an FYI in case you do presentations, etc.
@BrianFeroldiYTАй бұрын
Thanks for the info!
@peanut0brain2 ай бұрын
1:15 Hello sir, for Rule 1, you only take the lines "short term debt" and "long term debt" but ignore the other lines?
@BrianFeroldiYT2 ай бұрын
All debt should be included - what was missed?
@thenotoriusl.i.t.80102 ай бұрын
Why didnt you include accounts payable and other long-term liabilities? Is it just interest bedring debt you account for?
@rkalle662 күн бұрын
Why I don't find Chipotle as an investment in form 13F of Berkshire Hathaway?
@BrianFeroldiYTКүн бұрын
Because theirs more to investing than just balance sheet analysis :)
@Avela-ym7tt2 ай бұрын
Thanks Brian very helpful South Africa
@BrianFeroldiYT2 ай бұрын
Thanks for watching
@ChrisSD-we1lk2 ай бұрын
Good video! Thanks
@BrianFeroldiYT2 ай бұрын
Glad you liked it!
@itamarcus18 күн бұрын
What platform is used in the video that allows you to analyze that data?
@BrianFeroldiYT18 күн бұрын
Finchat.io/brian
@itamarcus18 күн бұрын
@@BrianFeroldiYT 👍
@jamesm.39674 күн бұрын
Audio isn’t synced.😮
@Rajesh_Dushmantha2 ай бұрын
Well explained 👏
@BrianFeroldiYT2 ай бұрын
Thank you 🙂
@Durkheim-z5xАй бұрын
Life is short, you should enjoy it while you are here. The other life does not depend on you, nor do you know if you will be able to enjoy it. In fact, no one can say for sure.
@gabrielmarimba45932 ай бұрын
what website do you use to search for that type of information? thank you
@BrianFeroldiYT2 ай бұрын
Finchat.io/brian
@elfyjohnson2612 ай бұрын
Can you analyze Microsoft and Palantir using these principles?
@BrianFeroldiYT2 ай бұрын
You sure can.
@davenwill29322 ай бұрын
When you mentioned that cash must be more than debt, do you mean short term borrowings only? why is accounts payable not part of it?
@BrianFeroldiYT2 ай бұрын
Fair question. Since we are only looking at cash, accounts payable is usually offset by accounts receivable. However, these are just rules of thumb and there’s always more nuance needed.