You’re Being Tricked Into Buying Bad Stocks

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[@JosephCarlsonShow]

Want to try out the software I built? You can have a free 3 week trial by joining today. Zero risk involved, only pay if you love it and want to keep using at the end of the trial: www.patreon.com/josephcarlson

[@RyanBurnett16]

Hi Joseph, I love the channel. Have you considered using a company ranking system in your portfolio? It could be a nice feature for your software. Giving +/- points to good debt to cash, growing revenue (5 year average), free cash flow growth/ FCF yield, net income, share dilution, PE ratio, 200 day moving average, etc. I think it would make for an interesting video and would be fun to see how your companies compare to each other objectively.

[@vladimirsukmeovf1211]

Dollar Genral is overpriced, every nice thing you said in the video is priced in. The PE is 24. All that growth is in that price, your returns will not be what you will pay for now

[@ronaldreagan6756]

Do this same method with Netflix. Yikes!

[@aightm8]

Any dfcf calc in it?

[@methos-ey9nf]

So watching your summary of all the different factors... What was the math to get 20% returns?

[@roseroland1998]

Over the years I have learned how to analyze stocks and developed my own skills. However, one of the best ways I've learned about dividend investing has been by buying dividend stocks. I have received $280k so far last year in dividends.

[@roseroland1998]

@stanleyedwin6947 I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.

[@cheezeweasel]

Scam thread

[@MadCaril]

yeah, i see these in every investing video. it's frustrating because you hope to see real and useful comments lol@@cheezeweasel

[@too-oldforthischet8463]

To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

[@Green-ed7wq]

I always found the idea of using spreadsheets very time consuming and unnecessary. I just dump a bunch of money into my savings accounts each month and keep my spending money in a separate account and try to spend as little as possible.

[@AmandaMichelle.]

There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.

[@advancetotabletop5030]

@@AmandaMichelle. Yes i agree and the markets are going berserk right now. This is the best time to watch them, get to know them better, and strike when the opportunity presents itself. I learned that from my mentor, 'Donna Lorraine Judge’ she's seen dozens of market cycles over the past few decades, and she has a feel for how they move, why they move, and what comes next.

[@kozovski6628]

@@advancetotabletop5030 Glad to have stumbled on this conversation. Please can you leave the info of your investment advisor here? I’m in dire need for one.

[@advancetotabletop5030]

@@kozovski6628 You may have heard of the advisor I employ previously; her name is "Donna Lorraine Judge," and you can look her up online.

[@davidmay2294]

Pay the right price for cash flow. And don't chase hype.

[@mr.financial]

And that my friend is how you build wealth, safely. Well said!

[@achaosg]

I missed TSLA at 115-150 a share and NVDA at 33... One of my most costly mistakes in life.

[@gameplayer1980]

Learned this lesson the hard way with Zoom, Crowdstrike and Fiver...

[@purewonka]

Math isn't hype. TSLA has better numbers than DG. Debt to cash ratio and EBITDA to debt ratio point to TSLA being the better company in this comparison. Not even close.

[@Adrik808]

@@purewonka those are both liquidity ratios. In the end we're paying for free cash flow

[@Honeyboobooboo]

One of your best videos in my opinion.

[@jozefkrizansky8120]

I think the same 👍. Really educational

[@rebeccaartgallary]

Heard someone say the best season for a fin.ancial breakthrough is now, especially with inflation running at a four-decade high. I have approximately $750k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?

[@lauraclover1547]

That’s right! Downturns provide plenty of opportunities for regular people to build wealth from the scratch. However, you may need to get some professional advice from an Invest-ment planner if you need an aggressive return.

[@bleshjjdnit]

@@lauraclover1547 Recessions are where millionaires are created. After my port_folio took a big hit in April, I was forced to employ the services of an Invest-ment-analyst who has not only accrued a profit of $250k for me since then but has also taught me how.

[@lindamattalom]

@@bleshjjdnit Please can you leave the info of your invstment analyst here? I overheard someone talking about how a couple made $200k during this red season. I need such luck lol

[@bleshjjdnit]

@@lindamattalom My adviser is “Deanna Lynn Renfro” You can easily look her up. She has years of financial market experience and she is also FINRA & SEC verifiable.

[@lindamattalom]

@@bleshjjdnit Thank you for this amazing tip. I verified her and booked a call session with her. She seems Proficient.

[@philippusparacelsus4136]

You should do more videos like this, great job. People have to realise that investing is boring

[@trevorglenn3215]

I laughed out loud. I own both Tesla and Dollar General. I’m from Florida and frequently visit the south. Dollar General is absolutely kicking ass. And I live in Los Angeles and I can tell you Tesla is also completely kicking ass. 😂 great vid Joseph!

[@schirmcharmemelone]

how does it look today? seems like DG is suffering

[@vivekchanana]

What a brilliant video Joseph..thanks a ton..and pls keep like these more coming..I’ve been watching your videos for long now and I can say there’s hardly anyone on youtube with this conviction and honesty..keep it up 🫶🤝

[@eugeneyap4208]

This is probably the best video that you have ever put out. As a newbie investor I always wonder where do the returns come from, and you really clarify lots of doubts I’ve always had

[@GarciaCapital]

Yeah can I get uhhhh… Double compounder with cheese?

[@MrLigersPride]

With a side of that uhhh... dividend sauce.

[@WanderingExistence]

The Buyback Shakes be gettin' a 1% Sugar Tax next year, they're sweet but don't add any economic value.

[@DoctorDoom69]

I feel like Zoom is dumbest most easily replicable business ever , I don’t get it 😂

[@krzysztofglowacki7400]

I don't know what it is :)

[@ethanshy280]

Yep. It’s been around for years with FaceTime lol. Plus there is MS Teams.

[@TBasianeyes]

Not really. Many competitors have tried: Amazon, Google, Microsoft, Cisco, Slack... But their call quality is horrendous and it never improved. Zoom calls are easily 10x better and I say that as a person who spends a ton of time on calls every day. Even intercontinental video calls work great. The founders of Zoom worked on years on WebEx, they got tired of the product quality and the result was Zoom. If a better solution comes around I'll switch tomorrow. But Zoom is running circles around all these big corps for now.

[@DoctorDoom69]

@@TBasianeyes there is 0 moat my guy

[@ethanshy280]

@@TBasianeyes I refuse to believe these other tech companies can’t come in and get to Zooms quality. They have all the money and all the talent in the world. FaceTime is every bit as good as Zoom. My work uses MS Teams, not Zoom. Why when companies use Office 365 would they also pay for Zoom? It won’t be around in 5-10 years. Guaranteed.

[@starwreck]

I just buy vti and schd mostly

[@Particle_Ghost]

Swap VTI with DGRO and your on the right track.

[@josephpacetti2254]

same here man. I think this approach is hard to beat

[@dogelife7901]

Easy peasy. Set that autoinvest and wake me up in 30 years.

[@Scorex7]

This video aged like fine milk. Not only is Nvidia absolutely out of control, but Dollar general tanked HARD😂 Lesson here: Do not listen to hype channels or "unhype" channels. Do your research and invest globally.

[@raysonlogin]

Was wondering if it is sponsored content? Why is DG singly used as "the" stock that retail investors didn't pay attention to?

[@psicologiaen15minutos21]

Growth is interesting not because retail investors are dumb, but because the theory is that you're buying to hold for a long time and growth stocks will grow now and improve margins in the future. Then this theory clashes with the FOMO and Hype Train chase and people get confused.

[@gen-X-trader]

You're absolutely right, and there are more companies just like that out there. The bottom line is, most people buy whatever they are told to. Whatever has the marketing. Whatever is on TV, whatever seems to be popular. Even though they might not say it, most people want to fit in more than they want to make money. On top of it all many people are easily influenced. If you feed them the same thing every day, sooner or later, they will start doing it

[@badass6656]

Growth, yes,dividends, valuation and 'persistence' (number of years a company can grow at a specific rate).

[@mushrifsaidin]

Don't let Buffett know about Dollar General, he'll snap it right up if he ever saw that beautiful steady and stable growth lmao

[@ThomasPisz]

Why didnt you show Tesla's EPS growth? Or Earnings growth?

[@andrewsdelahoz5248]

Great video Joseph! I loved these type of videos when you bring overlooked businesses that are not so popular or flashy but they have a great fundamental value. just like the one you did on Ulta beauty.

[@lord_saitama]

I am a fractional investor from India. Even though market went down it was easy for me to dollar cost average. Last week my entire portfolio went back into the green. I buy mostly chip companies and some times even buy soxl and soxs fractions to make some quick buck.

[@Gary65437]

Excellent lesson on growth and the financial buyback game. I'm shocked you have COST in your portfolio and not DG which beat COST over 10 yrs with a much lower P/E. If they made buybacks illegal a whole bunch of stks would be slow growth dogs like APPL and AMZN....lol

[@TomTheTruckdriver]

Then a tsunami of cash would come into shareholders' pockets tho.

[@penguinYT1]

Isn't Dollar General being acquired by KKR?

isn't dividend yield below 1% here?

[@purewonka]

You think Dollar General is a better investment than TSLA? Nothing wrong with DG, but the slant of this vid is that investors are being tricked into owning TSLA and DG is a better company to own. I expect this will rank up there with other predictions of yours such as your energy/oil companies are dying businesses video from a couple years ago. Buying TSLA monthly with every spare dollar I can find just like I was buying XOM hand over fist when you published your oil company obituary (I commented on that vid about how wrong you were). Having different points of view is what makes a market. Lets see where TSLA is and where DG is in 10+ years. DG has $16B in debt, $362M in cash, and an EBITDA at about $4B. TSLA has about $6B in debt, $21B in cash, and an EBITDA at $16B. If I owned both companies I'd be liquidating my DG position to buy more TSLA, and any person who can do math would do the same.

[@739jep]

Returns comes not just from future profits , but what you PAY for those future profits now. I don’t think that we can discuss where returns come from without considering price.

[@MKNYC_]

And even worse about Dollar General, most of them are garbage to shop at. You can get a 3 dollar tube to float in the pool and some chef Boyardee

[@exploitinvesting222]

@joseph Carlson well your on the right track with this video but your example is a bit misleading. It's true income is where returns come from but the problem with Dollar General is they are going about it by destroying equity at the same time. When you buy back shares at levels above book value and continue to have a massive debt load it's going to bite shareholders in the butt. If you notice, shareholder equity has trended downward over the past three years. While buying back shares is smart if future cashflows increase, its not smart when you have over 200% debt to equity.

[@RickWize]

good argument. I agree with your thesis. 🤔it looks like DG management loves dancing with tambourines. The mambo jumbo share buyback scheme was run by the CEO of Restoration Hardware Inc., Gary Friedman. From 2001 to 2017, he diluted the company's shareholders every year from 23.85 million shares in 2001 to 40.8 million shares in 2017. Then, from 2017 to July 2019, he abruptly repurchased shares from 40.8 to 18.47 million shares. But the main time bomb in this situation was that 2/3 of the ransom was financed by debt instruments. Then, until August 2021, the share price dived to $744.56. And what do you think he was doing all the time while the share price was in the sky? Look at the insider dealings of the company, you will see that he personally sold his own shares for about or more than $1 billion. On Wikipedia, his fortune is estimated at $ 1.2 billion (he still holds more than 10% of the company's shares). He went into pure financial engineering, instead of helping with the development and expansion of an interesting business model with these amounts of debt (Sale of accessories through luxury restaurants and places of authentic relaxation, customers rest in advance on furniture that they see, touch, feel, test in practice and come to the idea of a conscious purchase is an original approach to sales). By the way, after July 2019 until today, he again diluted shareholders from 18.47 million shares to 24.48 million shares on December 7,2022. With this dismissive attitude, he made a fortune for his retirement.That's the whole story with an example in a nutshell.

[@exploitinvesting222]

@@RickWize Wow, that paints an entirely different picture than what Joseph was claiming. This is why it's important not to just look at the numbers without digging a bit deeper.

[@RickWize]

@@exploitinvesting222Exactly.Also Sven Carlin made a couple videos about RH's Ceo and his mambo-jambo buyback purposes. it is always necessary to be attentive and careful about the details of companies, the devil is always buried in small details. There is such a phrase: Negligence in trifles will destroy great deeds. I always remind myself of this so that I don't fall victim to my lizard brain, as Terry Burnham wrote in his book "Mean Markets and the Lizard Brain".

[@1stFoxmovie]

Where do you get the dividend annualized return over 10 years to be 2% for DG? Or what am I missing?

[@stevetaylor20]

You're right and wrong. The returns for the majority of the snp 500 came fron a very small number of stocks, like amazon or apple

[@JosephCarlsonShow]

That's only because it's market cap weighted - an equal weighted index of the same companies over the past 10 years has actually outperformed market cap weighted.

[@konspras]

​@@JosephCarlsonShow This would make for a very interesting video (at least in my view).

[@stevetaylor20]

@@JosephCarlsonShow very good point, thanks for commenting

[@Manveer_Dhindsa]

Dollar general got destroyed ever since the video came out

[@Querenbach]

In retro perspective always it is easy to find unrevealed stocks which has well performed in the past.

[@ClassicalFanNL]

Another good one would be UNH, a health insurance provider. It is doing pretty well in this "bear" market. I kind of regard not getting it early last year.

[@rightangletriangle3188]

Thanks for sharing. Like the analysis a lot. Hope you will do more like this for other companies.

[@jimmy017]

Where do Tesla's returns come from? Revenue growth: 50% Earnings growth: 100% Buybacks: -3.5% EPS growth: 98% Dividend: 0% Multiple Expansion: -73% Total return: 25%

[@jimmy017]

Where could Tesla's returns from auto sales only, up to 2030, come from? Revenue growth: 15% (auto sales only) Earnings growth: 15% (assume no margin improvement) Buybacks: 0% (assume no buybacks) EPS growth: 15% Dividend: 0% Multiple Expansion: -5% Total return: 10%

[@jimmy017]

Where could Tesla's returns from auto sales, FSD, robotaxi, up to 2030, come from? Revenue growth: 30% Earnings growth: 50% Buybacks: 0% (assume no buybacks) EPS growth: 50% Dividend: 0% Multiple Expansion: -5% (conservative) Total return: 45%

[@rudraramcharan945]

Please make more videos like this! Really helps out young investors like myself understand what we're getting into.

[@topi2209]

good point. this video made me realised im biased of googla and amazon

[@dynamicreasonchannel]

Hey Joseph, this was a very informative video. I Really enjoy the different perspective you brought in this one. Keep up the good work👍

[@mathiasskovhansen3338]

You have to comment, on Michael burry's addition of stocks

[@wlagalvez]

Show your Holding tab, please

[@careygower8283]

Would LOVE to see a fresh look at DG in a new video given the recent earnings news and accompanying price drop. Is this a case of the thesis changing or being disproven? Or is this an example of where we shouldn’t “fall into hate” with a company?

[@Middlenamerichard]

Was just thinking this, given Joe’s recent negative video on DG.

[@ILIKKA]

Should’ve looked at the returns on Tesla and Nvidia. After all returns come from earnings growth in the long run.

[@Daddy-rc2kb]

One of your best videos - very clear and well explained! Probably half of wall street analysts can’t name all these return components if you asked them …

[@girldaddividendinvestor]

Awesome tips 👌🏿

[@ibrahimciftci9599]

Dollar General or Dollar Tree … was is the better pick ?

[@tyjameson7404]

Epic video 👍🙌👏 great content on the importance of finding high quality boring companies that have amazing book 📕 value and consistent dividend growth 👍🙌👏

[@lonely0takulive828]

I been looking on dollar general for some time. It caught my eye while watchin Company Man

[@venkym3148]

Very informative and good explanation

[@ksrengaram]

Couldn’t explain any better to understand the fundamentals of a company, you’re Awesome as you’re always, Thank you for your valuable videos

[@anthonyschneider8835]

This was a super eye opening video 🤯

[@michalkopanicky8254]

Agree

[@joeri2499]

I think a lot of retail investors fall for the story. Often, boring companies make the best investments. One of my best long-term investments is TSCO. Easy to understand business model combined with flawless execution.

[@chantelsanders1972]

Nice! Just recently picked up my first share. Can't wait to start adding to it.

[@ruiamaral6128]

I dont have words for this amaizing analysis ! Congrats mate !

[@BusinessCentralMusings]

would love to see in Qualtrim a listing or a way to display companies by descending Piotroski Score.

[@jt9411]

Dollar General, VICI, Starbucks and Walmart are a handful of stocks in my portfolio that are still in the green. It's been a rough year.

[@greatgrandpadad]

Great video, Joseph! I have owned DG for several years now, and I don't believe I have ever seen a KZbin video that covered it. So after your very good analysis, do you plan to add it to your portfolio?

[@1993ja]

While it is definitely true not to chase hot stocks, companies like Tesla and Nvidia attract attention for a reason. Just to review: the GAGR of Tesla over the past 10 years is 54,7% and Nvidia 49,0%. Both including the current drawdown and both massivly outperforming Dollar General. In the end, it all comes down to the business quality. Boring and slow or hot and hypergrowth can both do very well over the long run.

[@TotemoGaijin]

Dollar General seems to have a pretty bad employee retention rate from what I've experienced though. The one near often closes early or will just be closed certain days cause they couldn't get anyone to come in. I'm not sure how much they pay, but I'd guess they haven't kept up with most of retail.

[@Clorisluta]

you are right Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

[@tariqshaikh0]

Great content Joseph! Would love for you to go into a video about picking "younger" or less established companies. Even just a checklist of things you would look out for if we were going to do research

[@no1no1655]

Thank you for very valuable Video. Very valuable lesson. I've been at this investing game in earnest for a decade, and this is one of the best lessons I've learned.

[@cg722]

Another gem from J! Thanks

[@menenloko1827]

Starbucks won't have multiple expansion. In any case multiple contraction, which is a risk.

[@JosephCarlsonShow]

I agree with that, I actually think it's a complete coin flip on multiples with Starbucks, I wouldn't be surprised if they came down to low 20's high teens. That would reduce future returns. With Starbucks I'm assuming that EPS will grow pretty quickly. Analysts estimate around 15% EPS growth over the next 5 years. I think they can beat that if they really step up buybacks and if eventually the Chinese market gets some freedoms restored. With a 15% EPS growth, and a 2.5% dividend. I'm expecting a 17.5% return based on a constant multiple. If things go very poorly next year, and some deep recession hurts starbucks, it will for sure hurt the stock. I'd expect both the EPS to go down lower than expectations and the PE to go down from investors turning negative. But I am not underwriting the stock on a 1 year timeline. In the grand scheme a 1 year is just a line item and starbucks will continue to generate cash. They have the balance sheet/liquidity to be able to pull through a really bad recession.

[@coocoocachooglin]

@@JosephCarlsonShow How many SBUX shares do I need to buy to have the dividend pay for our $600 annual Starbucks habit?

[@davidm1436]

That’s a great video thank you! Might be interesting to see a video on how do you screen to actually find this type of companies, since they are not very talked about one has to do the discovering work for himself…

[@thelittleinvestor684]

the dividend yield says 0.81%. how do you calculate a 2% dividend in your calculation?

[@eolill]

Does Qualtrim include foreign stock exchanges or only US?

[@LuKiSCraft]

TSLA gained 9,000% in the past 10 years, even with the recent decline. What's the CAGR on that? I bet that beats DG. Generally I agree with your point though, a company is worth its forward free cash flows not sheer revenue growth

[@Rehvuhlation]

Thank you for a great informative video Joe! Would like more content like this!

[@paulevans2246]

Great vid. Thanks. What’s the best site / platform to use to filter for such companies? I.e. similar to your demo for dollar general

[@Dave_UL]

I like $DG I would like to get it cheaper though.. did a deep dive on it a few months ago, great company

[@cometomybedroom]

Superb and timely content! Thank you 🎉

[@mktwatcher]

Please like Joe's video about the ultimate fundamentals that really create value in companies. He brings it back to what matters: Profit ! Then, using those Profits Wisely.

[@Mywalkingblog]

My long-time holder which is solid, is EXR. Not on anyone's radar, yet great earnings and free cash flow.

[@marcb5524]

I am google Fanboy, Let's answer where do increase in benefits come from in Google? - Cloud is not a profitable segment, so the translation to profitability will bring benefits (+ the non current loses) - Reduction in expenses - Revenue growth (Why?) - Globaly advertising should grow at least at the inflation speed and I assume above that because of business realization of ROEs of investing - Advertising maket share on digital is increasing yearly - New Revenue streams: - New regions where Cloud is: India in Mexic recently lanched - Advertising with new ways: shoping using photos instead of looking for what you want, - Other bets/ Small projects: Pixel and other bets have huge oportunities for the future to grow as they are in their early stages, that said, they also can keep losing money

[@jaylewis9876]

There is a PS ratio to value revenues. This helps for companies like Amazon most years that was growing and reinvesting so earnings were zero or near zero.

[@ophatjb]

Excellent video Joseph!

[@sjuvanet]

AMAZING ANALYSIS!

[@Witnessmoo]

Bro, Tesla is growing at 50% yoy and has runway to do so for another 5 years easily, possibly 7 to 10 years! And that’s Revenue… it’s bottom line will grow like 80% yoy. This is insane levels of growth never seen before in a manufacturing business. And it says nothing about the potential of their moonshot projects like Robotaxi, which if they materialise, will propel them to heights unseen since the era of the Robber Barrons when Standard Oil had more revenue than the US Government. You plot the growth in a DCF, you get crazy results. Not everything exciting is a bad investment…

[@markarnoldsfinance2765]

BUY BUSINESSES, NOT STOCKS. I see a lot of investors buy stocks based on only one or two financial measurements. A stock is much more than a P/E Ratio or sales growth, you need to look at the full picture. Thanks for sharing another valuable video Joseph!

[@richardbucey1447]

Another well thought out video Joseph! I know DG has had historically high returns, but I was in one recently and it was an absolute nightmare. Not nearly enough employees, and the store was a complete mess. Even the prices weren't all that great. I have to think that dogshit customer experience will eventually catch up with them, but maybe that's just wishful thinking. Not MOAT either. Anywho, a 23 PE is too much to pay for such a terribly run company imo. Cheers!

[@exploitinvesting222]

It also has a ton of debt.

[@x_explores]

Hi Joseph, THX for this great content. Have you seen The Playlist on Netflix? The story behind Spotify. You will say that selling was a good idea. Look episode 5, the partner, at around minute 16, the guy asks : where your return will come from? Listen and …

[@tonycrabtree3416]

DG does a lot a business. A LOT. Small town America loves them. Great call out.

[@Crappie_Hunter_Seeker]

Very good video. Very informative ! Thank you Joseph !

[@ronaldoalv17]

What's popular stock your biggest holdings Apple, Amazon, Google, haha what are you thinking man I don't care tesla but the media talks about tesla on the negative side. Or short seller.

[@SlowBrewFinance]

Joseph, unfortunately share buybacks do not decrease the PE. EPS does increase, however the price component will also increase as the actual buybacks push up the price. That's the idea of the buyback - to push up the price of the stock.

[@JosephCarlsonShow]

I think that's a fundamental misunderstanding of the mechanics behind how buybacks work. Buybacks remove shares outstanding, that's all they do in isolation. A reduction in shares outstanding makes the earnings per share higher. A higher earnings per share makes the price to earnings ratio lower. A lower price to earnings ratio means the earnings are cheaper to investors. Investors buy the stock because the earnings are cheaper, which results in the share price moving upwards. So yes, the end result is that the share price goes higher, but understanding why the share price goes higher is important. The entire reason that buybacks have a positive corrilation with price movements is because it makes the earnings of the company sell for cheaper (lower PE). If for example, invesotrs did not buy the company after a stock did buybacks. The P/E of the company would just continually get lower and lower and lower (like exactly what happened with Meta over the past year)

[@SlowBrewFinance]

@@JosephCarlsonShow Buybacks cannot remove shares outstanding in isolation without pushing price, at least not easily. Someone must be willing to sell these shares since they have already been issued and are part of the market. The best case scenario would be that a major owner is willing to sell them at a discount, but I do agree with you - if buybacks are good news and show strength in a company, investors would flock to the stock and raise the price as a signal of quality. PE deflation occurs as the discount rate gets pushed higher (and the present value of the stock decreases), so the perception of risk is higher. It is much much harder to have expectations in EPS change without a price reaction. BTW - I respect you and like hearing your thoughts. Take this as nitpicking :)

[@fundrisefanfam]

This is my favorite video that you released today

[@bluezaton]

Thanks for the video with great insight and education... Now let's focus on Nvidia and Tesla again 😄 jkjk. I think you should talk about Pepsi more, I think there's a lot more growth rather than it just being a stable part of a portfolio

[@Professor.Joe1]

A really good video to put growth in perspective. Thank you!

[@jaydenderksen8032]

Of coarse Tesla won’t be buying back shares and sending out dividends. This is like comparing apples with oranges. Dolled general is in a very different stage than Tesla, Tesla is in a growth stage and dollar general is a established blue chip stock. I own both of these companies for that reason. One for the growth and once it’s established there is a very good chance they will become the company with solid returns and dollar general may not be around. This is why I like having a healthy balance of established dividend paying stocks and also some growth stocks to set myself up for the future.

[@jozefkrizansky8120]

Only thing that worry me in this company is cash/debt ratio. They 10x more debt than cash.

[@JosephCarlsonShow]

Well, sorta- it’s not long term debt. It’s capital leases . Which is basically a cost of running the business. Similar to any cost of running any business. They have a lot of leases but they have far less employees per store than most retailers.

[@jozefkrizansky8120]

@@JosephCarlsonShow Really? Last quarter was cash 360m. and debt 3b. and capital lease 10.4b. They are in that high debt/cash ratio since 2008. It`s just what I can see in your Qualrim.

[@JosephCarlsonShow]

@@jozefkrizansky8120 I would compare the amount of debt to last years EBITDA. They produced around 3.8 billion in EBITDA. So they can pay their interest expense on debt, and their lease expense pretty easily. And even generate 1+ billion per year in free cash flows afterwards.

[@Seoulsearch616]

Terrific video! I like looking at companies that may be boring, but people are going there over and over to buy their products. I have nothing against Tesla, but people don't buy new cars all that often.

[@DailyMeditation365]

I've been selling all the garbage I bought in 2021 and putting it towards VOO (80%), QQQ (10%) and holding cash

[@menumlor9365]

Hey Joseph, is it possible to have negative EPS? A company I noticed that had it is COIN at -5.6 eps. What are your thoughts?

[@thetaomega7816]

they lose money

[@WitakPL]

This video really makes you think. The investment world really is a huge place and turns out that buying this "boring" companies will give us much better returns in the long run.

[@vitsboy46]

Exceptional video ❤️❤️ can't wait for your take on GPT now 🥳

[@jmcauhy]

Joseph, isn't Dollar General a bit indebted? And the profit margin is growing, but the ROCE is falling.

[@calebyenusah3174]

Absolutely amazing analysis! Thank you!

[@Firefighter-Boxer]

Hey Joseph, I’ve been watching your videos for a long time and enjoy learning how to pick good stocks! This is a purely innocent question, but do you go into why you don’t invest in any big oil stocks in any of your videos? Thanks, Derek

[@CroncAstronaut]

This didn't age so well regarding DG :)

[@c.espinoza528]

Great insight!

[@CarlitoswayDR]

Hi Carlson! Can you make a video showing your portfolio and stocks in it. It’s been a while you don’t give us an update on that thanks!