Stock Stories

Today's episode addresses a listener question about temperance and sticking to an investing strategy.  What are some tools we can use as individual investors to do a better job at this?  I'm definitely still working on this myself, but here are some suggestions: Experiment with different ideas Keep a journal (investment-specific or otherwise) Develop and use a checklist alex@stockstoriespodcast.com Instagram: @stockstoryteller

Happy 2020!  To kick off the new year I decided to compile a bunch of the knowledge regarding stock investing that I have learned over the years and compile it into one episode.  It's a long one but I hope you get a lot out of it!  There is so much to learn in investing and what's included here is just the tip of the iceberg.  Happy investing in 2020!alex@stockstoriespodcast.comInstagram: stockstoryteller

Baxter International is one of the world's largest healthcare companies.  Their products can be found in hospitals, nursing homes, clinics, and doctor's offices around the world.  They invented a safe storage method for blood as well as the first artificial kidney, so there is a long history of innovation.  In addition to Baxter's past, we also look at how we expect it to perform as an investment in the future.---alex@stockstoryteller.comInstagram: stockstoryteller

PPG is one of the world's largest producers of paints and coatings.  It's an industrial, cyclical business that has transitioned over the years from producing glass to coatings for cars, planes, and buildings.  We've studied this industry on the podcast before - but how does management of this company allocate capital?Instagram: stockstorytelleralex@stockstoriespodcast.com 

Lockheed Martin is the largest defense contractor by revenue in the U.S.  They make the iconic F-35 fighter, as well as helicopters, missiles, space systems, and cyber security systems.  After a lot of industry consolidation over the decades, they now boast a strong portfolio of products.alex@stockstoriespodcast.comInstagram: stockstoryteller

Mabel Nuñez is a fellow investor and runs the platform Girls on the Money, focused on helping women learn how to invest.  She has a great story and I enjoyed catching up with her at FinCon this year.  Check out her content below to learn more: https://girlsonthemoney.com/ Instagram: girlsonthemoney Book: Stock Analysis 101

LVMH is the premier luxury conglomerate that owns iconic brands such as Louis Vuitton, Moët, Hennessey, Christian Dior, Bulgari, Dom Perignon, Sephora, Fendy, Hublot....the list goes on, and is soon to include the iconic jeweler Tiffany and Co. that was the subject of an episode a few weeks ago.The de-centralized, vertically integrated luxury model, in addition to excellent management, has allowed LVMH's stable of Maisons to thrive for decades.  It is one of the best large businesses I have ever come across.---Instagram: stockstorytelleralex@stockstoriespodcast.com  

Churn is the concept that doing nothing is not the equivalent of standing still - it's moving backward.  In many systems, including biological systems, insurance companies, and your portfolio - churn is a factor.  It's important to keep it in mind when analyzing a company or industry, or even when different events happen to stocks in our portfolio.Instagram: stockstories1alex@stockstoriespodcast.com

When I was at FinCon 2019 earlier this year, I had the great pleasure of meeting a man who goes by the name of Wall Street Trapper.  He's got an incredible story, and we talk about how he came up from hustling in the streets of New Orleans to learning how to invest in the stock market. We covered a lot of ground in this interview beyond his personal story as well, and spent some time talking about investment philosophy.  I hope you enjoy and learn from the conversation as much as I did! To learn more about WST, check out his Instagram at wall_street_trapper, or online at https://www.wallstreettrapping.com/

You can't mention computers or software in the world today without mentioning Microsoft.  The now trillion dollar company has changed the way that people interact with the digital world, and they're still making waves today.  With cloud computing, artificial intelligence and new operating systems, Microsoft is working hard to stay on the edge of technology.  This week's show is the second of two episodes where we go into Microsoft's history, as well as its business model to try to understand it from the investor's perspective.---alex@stockstoriespodcast.comInstagram: stockstories1

Welcome to Stock Stories!  This is a very special episode for me because it is the first interview that I have ever done for this podcast.  Not only that, but I got to talk with my friend and mentor Teri Ijeoma, who is a professional trader.Teri and I first met at FinCon in 2018, and we got together again in September 2019 at the same conference to do this interview.  I hope you enjoy our conversation!To find out more about Teri's courses, including the one I took, check out her courses below.  In the interest of full disclosure, these are affiliate links and I may earn a commission if you enroll in the class:Trade and Travel Program - best for learning how to read charts and trading fundamentalsVIP Investor Program - includes Trade and Travel content with additional advanced topics such as shorting, options, and moreYou can also find her on Instagram: @imaninvestor

You can't mention computers or software in the world today without mentioning Microsoft.  The now trillion dollar company has changed the way that people interact with the digital world, and they're still making waves today.  With cloud computing, artificial intelligence and new operating systems, Microsoft is working hard to stay on the edge of technology.  This week's show is the first of two episodes where we go into Microsoft's history, as well as its business model to try to understand it from the investor's perspective.---alex@stockstoriespodcast.comInstagram: stockstories1 

Centene is the leader in providing Medicaid and Medicare health plans in the United States.  Their massive growth over the last few decades has been precipitated by a changing health care climate as well as rapid consolidation of smaller competitors.  Though this is a complex business that is highly regulated, the fact that the federal government funds the majority of premiums indicates stability of future revenue.---alex@stockstoriespodast.comInstagram: stockstories1

I took a little vacation this week with the family and have some more research to do on the next company I plan on bringing to you.  In the meantime, here's an episode of a company I enjoyed studying some time ago - retailer Ross Stores.  They have continued their expansion, and even though there is a lot of doubt out their regarding the future success of retail businesses, Ross still has a lot going for it.---alex@stockstoriespodcast.comInstagram: stockstories1

When we put effort into something, we expect to get the same amount of output, right?  This can often be the case, but sometimes the rewards we get are not proportional to the risks that we take.  For example, in portfolio construction, diversification only makes sense to a certain point before it "waters down" our overall returns.  The Law of Diminishing Returns reminds us that we should be mindful of the inflection points in our investments and in our lives as well.---alex@stockstoriespodcast.comInstagram: stockstories1

Tiffany and Co. is known worldwide for their high quality jewelry, particularly for their classic Tiffany diamond rings.  They also sell accessories, watches, and fragrances, but the bulk of their sales come from jewelry.  They have over 320 stores in over 20 countries, and have a storied history, having been in business since the 1830s.  This is not a business that is highly susceptible to technology disruption, and sells classic goods where prices can be raised without much customer objection (a benefit of companies in the luxury goods sector).---alex@stockstoriespodcast.comInstagram: stockstories1

Dunkin's Brands owns the iconic Dunkin' Donuts and Baskin Robbins franchises, and has over 20,000 locations across the globe.  They primarily sell coffee, donuts, and ice cream.  Sounds delicious!  Because of their franchise model, they are able to expand rapidly with very little investment.  Although not a high growth business, Dunkin' is interesting because of their overall economics (stability of earnings), and because management has historically been diligent with returning cash to shareholders.---alex@stockstoriespodcast.comInstagram: stockstories1

As one of the larger American fashion houses, Ralph Lauren produces branded clothes, shoes, and accessories.  They cater toward an "Ivy League" or modern look with a lot of their clothing, and sponsor the PGA championships and on-court officials at Wimbledon and the U.S. Open.  Although it is a slower-growing business, management seems to do a decent job at returning cash to shareholders, but can they reinvest effectively for growth?---alex@stockstoriespodcast.comInstagram: stockstories1

Have you ever thought about the habits and beliefs that you have?  Many of these beliefs were likely formed before you even had the consciousness to make many decisions to yourself.  This concept applies to life more broadly, but also applies specifically to investing decisions.  What brands do you purchase simply because your parents purchased it growing up?  What products or services are part of your life that stem from a core belief that was passed down to you as a child?  ---alex@stockstoriespodcast.comInstagram: stockstories1

Coach, Kate Spade, and Stuart Weitzman are the three brands under the Tapestry umbrella, although Coach dominates in terms of sales and profits.  This fashion house has been making handbags for decades, but may have lost some of their cachet in recent years.  Will their diversification with the purchases of Kate Spade and Stuart Weitzman revitalize their bottom line?---alex@stockstoriespodcast.comInstagram: @stockstories1