Here are 2 ways to make money from stocks💸
1️⃣ Share price growth:
Share growth reflects the profitability of the business over time.
2️⃣ Dividend income:
A dividend is the profit distribution to the company's shareholders.
A dividend is paid out every quarter or yearly.
#learninvesting
Always compare a company’s financials to its peers — context is everything.
Understand which companies perform exceptional, average, or mediocre. Hidden gems are easier to spot this way.
#investing #finance
🚩 Dividends aren't so great when:🚩
1️⃣ Dividend payout ratio (>80%) ➡️ company sacrifices growth opportunities 📉
2️⃣ Tax inefficiency ➡️ double taxation
3️⃣ Declining financial health ➡️ companies can't sustain dividends
#investing #dividends #taxes
Free Cash Flow (FCF) is the Operating Cash Flow - Capital Expenditures (CapEx). Companies use a variety of names for CapEx, like Property, Plant & Equipment (PP&E).
Floor & Decor's Cash Flow statement provides the figures. Notice the figures are in thousands (left top corner)
#investing
Wealth consists not in having great possessions, but in having few wants.’ Epictetus
The goal of investing isn’t to die with the most money. It’s to live a life you love.
#investing #money #stoicism #wealth
How to find the Gross Profit Margin in the income statement? Simply substract Cost of Goods Sold - Revenue to come at Gross Profit. Then divide this by Revenue.
Higher margins mean higher pricing power or efficient production.
#investing #profit #incomestatement
The Investor's Mindset: Shift from ‘I need a quick profit’ to ‘I’m building lifelong wealth.’
#investing #mindset
Investing instead of buying the iPhone 16 gets you over $2500 in 10 years
Compound Interest is a tax on today's expenditures. A new iPhone cost you $1000 now, but actually costs you over $2500. It's the amount you can have if you use $1000 to invest for 10 years.
Buy only what you truly need and invest the rest of your income!
#investing #iphone #compoundinterest
Investors expect to profit in at least 1 of 3 ways:
1️⃣ Free cash flow from the business ➡️ through dividends or share buyback
2️⃣ Increase in multiple (P/E ratio)
3️⃣ A narrowing gap between intrinsic value and market value
#investing #dividends #sharebuyback
Why wait for New Year's resolutions? Will you start investing?
#investing
"The stock market is filled with individuals who know the price of everything, but the value of nothing." - Philip Fisher
To avoid checking stock prices daily, do this instead. You want to keep the glass empty💪 #investing #habits
Do crises really impact your investments long-term?
