These are the top personal finance content (blogs and videos) I consumed in this outgoing week. I hope you find some of them useful.
- 14 Numbers You Need to Know When Investing in Real Estate Deals
G. Brian Davis, writing for Money Crashers, explains fourteen essential numbers that every real estate investor must know when making investment decisions. These numbers include cash-on-cash value, loan-to-value ratio, after-repair value, closing costs, renovation costs, gross rent multiplier, cap rate, monthly cash flow, appreciation, population growth rate, job growth and unemployment rate, price-to-income ratio, and price-to-rent ratio.
Brian follows a beneficial structure. The first section explains the numbers about which every real estate investor should care. The next two sections focus on numbers relevant to flippers and income investors, respectively. The last section then highlights numbers that deal with housing market fluctuations.
Read the article here: https://www.moneycrashers.com/real-estate-investing-deals-numbers/
- 5 Pieces of Investment Advice for Real People
Alana Benso, writing for Nerd Wallet, curates five valuable investment advice from expert investors. The five pieces of advice are: take advantage of employer-matching dollars (401-k and 402-b), start early, have a financial plan, do not try to predict the market, and take a long view.
Benso also gives specific tools that you can use to implement these five steps.
Read the blog here: https://www.nerdwallet.com/article/investing/investment-advice
- Analyzing Warren Buffett’s Portfolio
Simranpal Singh, in this video, examines the top five stocks in Berkshire Hathaway’s portfolio. He analyzes these companies and calculates their intrinsic values. Based on the calculation, he decides whether the company is overvalued and undervalued.
The video is an interesting one, and it includes links to the valuation methods he uses for evaluation.
Watch the video here: https://www.youtube.com/watch?v=TCo7DQmItIY
- How to Pay Rent When You Can’t Afford It
Melissa Lambarena, writing for Nerd Wallet, offers some options that people who find it difficult to pay rent during this period can explore. He divides the article into the free options, the options that involve dipping into your investments, and those that involve taking on debt. Some of the former include talking to the landlord, calling nonprofits and religious organizations, applying from grants, and asking help from family or friends. Under the second option (investment), he mentions selling some stocks or withdrawing from a 401(k) account. The last option should be choosing the least expensive high-interest debt.
Melissa’s article is very practical and helpful. Ranking these various options from the free to the most ensures that people will consider the free options before exploring the more expensive options.
Read the article here: https://www.nerdwallet.com/article/credit-cards/how-to-pay-rent-when-you-cant-afford-it
- How to Calculate the Intrinsic Value of a Stock
Simranpal Singh, in this article, goes through the valuation of a company’s stock using the DCF valuation model. He employs a systematic approach that makes it easy for you to replicate the calculations on any stock. After explaining the process, he uses Apple’s stock as an example to illustrate the process further.
Watch the video here: https://www.youtube.com/watch?v=m6XlMnAkvBc&t=15s