Below are my favourite personal finance content for the outgoing week.
- Domino’s Stock is Better than FAANG stocks.
The FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google) are well known among investors for their incredible growth rate. Over the past five years, these stocks have grown 150%, 193%, 500%, 360%, and 152%, respectively.
In this video, Simranpal Singh evaluates Domino’s stock, which also had an incredible 220% growth in the past five years. While its growth rate is comparable to the FAANG stocks, it has a very low beta (0.38), making it less volatile. Simranpal does a deep dive into the stock and the potential of the company. He gave the stock a buy after comparing its intrinsic value with the current market price.
Watch the video here: https://www.youtube.com/watch?v=VJh7aZCUZ_8
- 7 Best Stock Screeners of 2020
Every investor knows the importance of stock screeners. They help to narrow down our list of potential investments so we can do a deep dive into a smaller number of stocks. In this article, G. Brian Davis looks at the seven best stock screeners in the market. The seven best stock screeners are Trading View, Stock Rover, Finviz, TC2000, TD Ameritrade, Zacks and Nasdaq Screener, and Trade Ideas.
Davis highlights the essential features of these screeners and dedicates a section to the factors you should consider when deciding on a screener.
Read the article here: https://www.moneycrashers.com/best-stock-screeners/
- The Intelligent Investor Summary
I just discovered a new channel on Youtube – Swedish Investor. On this channel, you will find animated summaries and takeaways from some of the classic finance books. In this episode, the Swedish Investor reviews one of the most important books on investing – The Intelligent Investor by Benjamin Graham.
In this video, he highlights five takeaways from the book. The first is the importance of paying attention to value rather than price, the worth of a business rather than the market. For the second and third points, he highlights Graham’s rules for defensive and enterprising investors, respectively. The fourth point explains the importance of margin of safety, and the fifth emphasizes that risk and reward are not always correlated.
This video is a good refresher on an important book.
Watch the video here: https://www.youtube.com/watch?v=npoyc_X5zO8
- Interpretation of Financial Statements
Excited by his summary of The Intelligent Investor, I decided to consume more content from the Swedish Investor. I found his summary of The Interpretation of Financial Statements beneficial. In this video, he makes five essential points that summarize the book. The first is the importance of financial statements, especially the income statement and the balance sheet. Secondly, he explains certain industry metrics to which investors must pay attention. Next, he explains the concept of watered stocks (companies overstating their assets) and the reason Graham ignores intangibles in his interpretation of financial statements. He discusses the idea of liquidation value or book value and how to use that figure (compared to market price) to identify potentially profitable stocks. Lastly, he explains the importance of certain qualitative factors when investors evaluate companies and their stocks.
Watch the video here: https://www.youtube.com/watch?v=cRDcAeOJn7s
- Free Budget Software
Budgeting is an essential component of personal finance. Every good thing in personal finance must start with appropriate budgeting. In this article, Grant Sabatier examines eleven free budgeting tools that offer a wide range of features. Included in the list are Personal Capital, Mint.com, YNAB, GNUCash, Buddi, Google Sheets, Truebill, Goodbudget, Microsoft Money Plus Sunset Deluxe, PocketGuard, and Everydollar.
Granit identifies the major features and unique selling points of these software.
Read the article here: https://millennialmoney.com/free-budget-software/