Your content is next level Brian! Both of you do an amazing job! No hype, talking about what investing is really about. Very refreshing. Binge watching all your content.
Terrific framework. Pilots have checklists for a reason. I have been spending the last few days applying the principle , if not exactly the recipe to my portfolio, and boy have I learned a lot!. Biggest thing I noticed; if I love a company for one reason , say optionality, I tend to ignore the weaknesses, say excessive dilution.~ checklists remind us that everything matters, always. Yours in particular is carefully crafted. Been investing in individual stocks for 30 year and learned something good today.
Have a baseline knowledge of a lot of the things covered in this video. Really appreciate breaking things down and keeping it understandable for many. Look forward to digging deeper into more companies. Great video.
Took me a while to get through this video, but only because I took detailed notes and did my own analysis of Shopify at the same time. I'll continue to use this as I begin my investing journey outside of my 401K, Roth, etc. Great stuff! Thank you.
Just referred a friend to your channel. Explained to him the value that I get from the both of you. And I especially recommended your mindset videos (like this one).
Thanks for the Checklist I first thought you'd have to pay an awfull lot, but turns out you dont have to pay anything, for me as a 17 year old student thats very very helpfull so thank you very much.
Thanks for all the insight into the process. Are there things you are thinking about adding to the framework? Likewise, are there things you had, but have since removed?
Mine has continually been cut down. Over and over and over again. Right now, I'm pretty happy with the eight the AF framework has. Brian's is longer, but (obviously) covers a lot more too
Excellent video Brian 2x , I showed video to my wife she is learning fundamental analysis and your explanation of framework and process was very helpful. I will buy your Google sheet .Thank you for sharing 👍
If you don't subscribe to Brian Feroldi's email list, do it ASAP. Great daily reminders that are valuable for investing and most other aspects of life. Do it now! (not Brian's dad)
Great two Brians!! Cheers from Brazil, french investor. Obs : Brian Feroldi, i got your name when i listened your sensational speech on The Investor's Podcast Network, you can beat the market.
Hi Brian, great guide and thank you for the checklist. I want to ask you about the protfolio tab in that file, what is the use of it and how to? Again, many thanks for your content.
Great stuff from both of you! May I ask how you do when the criteria has 4 scores: from 0 to 3 (i.e. 0-1-2-3) but only 3 levels (low-average-high)? Thanks!
Thanks for a great video. Tremendous learning in a hour on how to evaluate to find high growth, low risk companies. Very clear and powerful thoughts. Will continue learning!
Great video I learnt a lot. I intend to go through my portfolio as well as utilise it for new investments. How often do you recommend to revisit the scores for a company that you have invested in?
Brian, I downloaded the spreadsheet, very useful, thanks. I found that the first 5 Moat related rows should be averaged (sum d11:d15)*15/70, if you would like to obtain a maximum score of 100, but it doesn't appear that way in the SS. Is this an error or a misinterpretation from my side? Thanks again, I think you do a great job educating all to make us better investors
Hi German! No -- the MAX moat score is 20 (15 for an individual moat number and 5 for if its widening). Otherwise, the moat would be on the only metric that mattered.
@@BrianFeroldiYT OK, so, if this is true, in the HD example you gave them 15 out of 15 even though you consider they have no network effect, don't benefit from switching cost, etc.) Is this right? Thanks
Hi Brian! Many thanks for a really good video. I have just started my journey in valuing companies so I can get a better picture of where the company is going, as well as in the what phase. For this I need tools that give me real values. Where can I pick up your spreadsheet?
Brain^2 thanks so much for this insightful video. I have a degree in finance and feel like I learnt more about stock analysis in this video. I have a question in regards to organic growth runway. I note that you said you dont want to see revenue growing from acquisitions, but in your check you simply looked a revenue growth. How do you know that the increase in revenue wasnt due to an acquisition that year ? Thanks in advance gents really appreciate your work.
Thanks Scott! That's where studying the business & business model comes into the picture. Sometimes organic vs. inorganic is broken out, other times its not.
Hi Brian(s), many thanks for shooting this vid, so much insight into how to assess a stock before investing. Quick question and forgive the ignorance upfront! Is there a video in your arsenal similar to this but aimed only at "growth" stocks, or stocks that are in the early stages?
When assessing the balance sheet, it is useful to consider the ability to repay the debt. Instead of simply looking at cash and debt, relate it to EBITDA. HD has below 2.0x, which is very solid, and committed publicly to maintain this level.
Yes. Details like that can matter. Balance sheet analysis depends on the stage of growth the company is in. HD is mature, so cash vs. debt isn't as meaningful now as when it was a growth stock.
@@BrianFeroldiYT thank you! I love your structured approach. Would love to have a checklist tailored for value companies as well. Anyways, keep on doing great videos!
it seems to me that all your criteria, except one (returns on capital) keep track of the price on the stock and whether it is overvalued. I would assume that AAPL would score very high but for some people, it might be overpriced. Shouldn't you add more value vs price criteria in your score?
Hello Brian x2. Just went and downloaded your checklist. Hope I made you smile. How often do you update various resource links that you have in there? Reason I ask is if I download a local copy, wont have the latest updates that you might add from time to time. I know you've set it for free so I can go and download it for free next time however trying to understand how frequently I should be doing that? Many Thanks and have a lot of respect for what you are doing.
Thanks Harsh Upreti! We DON"T publish the scores if that's what you are referring to. However, there are some links in there to investing resources. Those might change occasionally. To your point, its free to download, so you can always download it every 6 months to keep up with the changes!
@@BrianFeroldiYT thank you sir, so Im doing research on these tickers which I will be holding for long terms, however I’d love to see a video about them if you guys ever had time, they are “ GENI, CTRM( only 1 employee), PSFE”. Thank you a lot for your efforts
Thank you so much for walking through this line by line. I followed along for the entire hour or so while doing my own score for $AXON, which netted out at 94. Does that seem high? Anyway, thank you so much for doing it.
@@BrianFeroldiYT I may be too optimistic about its moat, but seems to me that the deals they strike w/ authorities are difficult to switch away from. First-mover, founder-led, great mission statement ... I'm a bit rosy.
Golden nuggets here... thank you Brian! (I happen to know your work because your twitter was routinely shared by a popular Chinese youtuber with approx. 58k followers in his investment channel) A trivial question from a beginner like me...For a growth company, is all cash and no debt a good thing? (financial resilience)
@@BrianFeroldiYT Good to know! Sometimes I see some companies have enough cash to pay off their debt but they seem to leave like that (U). I mean having some percentage of debt for expanding their business while having some more cash at hand to deal with contingencies or whatever, wouldn't this be a good strategy for a growth company? Yes, your tweets have been frequently used as a sort of "soul massage", to comfort or inspire people...maybe you did not know this but I think you have a high reputation in that channel (for example: ruclips.net/video/ZmYsKwZQK5Y/видео.html )
I tried filling it up for TTD and had to constantly fight the bias in rating it higher for subjective fields since I really like the company. How do you stay neutral when you're filling it up for a company that you really like?
@@BrianFeroldiYT That's true. Few points here and there and the end score may change. May be I should read several bear cases before filling up the checklist 🙈
I look at CEO and leadership, current and projected growth rate, current market cap, projected industry cap, and X factor that gives this company and edge over others.
I'd give HD a negative score on Brand value. It is widely known to sell junky products -- even brand-name products from other companies. They tell the other companies to give them their worst quality products at the lowest possible price. Or, at least that's their reputation. Since AWS didn't exist before 2007 (or so), would you really have given Amazon a high score for optionality at that point?
Sorry but I can't agree with "debt eliminates options" statement. Debt sometimes is much better than cash for capex. Over all I really appreciate your knowledge.
Looking at the last five years for the stock prices, not very valuable. You should be looking at at least 10 years or more. If you had looked at Kathy Woods fund in spring of 2021, they would’ve gotten four out of four. They should be getting zero out of four on everything. well it’s true that this would have been the same for the 10 year outlook, they had only been around for five or six years at that point, which only bolsters my point.
Loved the round-through, albeit long-winded, but not long-winded enough. I get that this is a basic run-through of concepts, but there are so many technical, not to mention idiotic cultural misconceptions and dichotomies in here, that if you're not a DOW or S&P500 investor of US trading established companies functioning MAINLY in the US, stay away from this like the plague! There's so much US subjective non-quantitative views/opinions here that it would scare any rookie emerging market investor to their core, and for absolutely no reason. ps. in China alone, there are over 3500 languages, and if you combine Cantonese, and Mandarin, they provide a pretty good marketbase for an established, innovative company, that isn't from the US of A that only provides a service in English. P.S. who the fuck grows by Organic measures? This isn't the 1950's! Frankly, I have so many question marks, there are too many to mention, we'd go on for weeks if you were to answer them all. Classic US BCG undergraduate shit stuff just to please the one or other US SME 10+ CEOs, but most likely just to drive youtube/Twitter clicks for Reddit or Piratebay retail investors I bet. lol But hey, call me a Fool if you like...
Thanks for watching! Join 25,000+ readers of my free newsletter: mindset.brianferoldi.com/
Two of the smartest and more disciplined investors i know
Feels good knowing there are people like you out there that genuinely want to help other people make it.
We are both on a mission -- and we mean it!
Your content is next level Brian! Both of you do an amazing job! No hype, talking about what investing is really about. Very refreshing. Binge watching all your content.
Glad you enjoy it!
Thanks for watching! Download the checklist here: gum.co/zWXye
Just tried downloading it, and the "I want this" button on gumroad doesn't work.
The same for me also
@@kurtelia2212 I had the same experience. Looks like you need to enter a $ value in the box above the button. Suggestion is to enter $19 or more.
Terrific framework. Pilots have checklists for a reason. I have been spending the last few days applying the principle , if not exactly the recipe to my portfolio, and boy have I learned a lot!. Biggest thing I noticed; if I love a company for one reason , say optionality, I tend to ignore the weaknesses, say excessive dilution.~ checklists remind us that everything matters, always. Yours in particular is carefully crafted. Been investing in individual stocks for 30 year and learned something good today.
Thanks Bryan Monkhouse! Glad you find it to be useful!
I'm so blessed to have you guys as mentors!!!
Glad you found us!
I sincerely thank you for making this kind of information available.
Keep teaching us how to fish
That's part of our mission!
@@BrianFeroldiYT well, what's your mission statement? (I need to determine if it's easy, inspiring and optionable)
I found it: to spread financial wellness!
Have a baseline knowledge of a lot of the things covered in this video. Really appreciate breaking things down and keeping it understandable for many. Look forward to digging deeper into more companies. Great video.
Took me a while to get through this video, but only because I took detailed notes and did my own analysis of Shopify at the same time. I'll continue to use this as I begin my investing journey outside of my 401K, Roth, etc. Great stuff! Thank you.
thank you ! hope you can make a video about stock dilution risk and customer acquisition costs
Good ideas!
Just referred a friend to your channel. Explained to him the value that I get from the both of you. And I especially recommended your mindset videos (like this one).
Awesome, thank you!
Thanks for the Checklist I first thought you'd have to pay an awfull lot, but turns out you dont have to pay anything, for me as a 17 year old student thats very very helpfull so thank you very much.
Thanks for all the insight into the process.
Are there things you are thinking about adding to the framework? Likewise, are there things you had, but have since removed?
Mine has continually been cut down. Over and over and over again. Right now, I'm pretty happy with the eight the AF framework has. Brian's is longer, but (obviously) covers a lot more too
@@stoffelbrian Understood. Thanks
Great work and thanks a lot! I personally added a seperate sheet on timing to factor in things like momentum & valuations.
Excellent video Brian 2x , I showed video to my wife she is learning fundamental analysis and your explanation of framework and process was very helpful. I will buy your Google sheet .Thank you for sharing 👍
That's great!
thanks for the video. Very well made, informative without any fluff.
If you don't subscribe to Brian Feroldi's email list, do it ASAP. Great daily reminders that are valuable for investing and most other aspects of life. Do it now! (not Brian's dad)
brianferoldi.substack.com :)
Best content i have seen about investing in a while 💎
Thanks!
A very valuable walk-through, thanks for putting it up.
The wealth of information from you guys are priceless!!
Thanks YB!
What an amazing video, thank you so much this is incredible helpfull🙏
The file it self is also very useful, I learned alot 🙏
Amazing Checklist. Do you regularly revisit the principles and categories and maybe update the checklist in an iterative manner?
Great two Brians!! Cheers from Brazil, french investor. Obs : Brian Feroldi, i got your name when i listened your sensational speech on The Investor's Podcast Network, you can beat the market.
Thanks for listening!
Hi Brian, great guide and thank you for the checklist. I want to ask you about the protfolio tab in that file, what is the use of it and how to?
Again, many thanks for your content.
Currency issues way overstated. Far too many quality companies rely on international revenue.
Great stuff from both of you! May I ask how you do when the criteria has 4 scores: from 0 to 3 (i.e. 0-1-2-3) but only 3 levels (low-average-high)? Thanks!
Love these videos, Brian!
Glad to hear it!
Thanks for a great video. Tremendous learning in a hour on how to evaluate to find high growth, low risk companies. Very clear and powerful thoughts. Will continue learning!
Glad it was helpful!
Thank you for sharing. This is mind-blowing 😮.
Glad you enjoyed it!
Thanks for making us better investors. Love your content!
I appreciate that, Jesper Jeppesen!
Great video I learnt a lot. I intend to go through my portfolio as well as utilise it for new investments. How often do you recommend to revisit the scores for a company that you have invested in?
Depends -- annually likely makes sense
Thanks a lot Brian! This is really an awesome walkthrough :)
Glad you enjoyed it!
Legend has it the only dislike on this video came from Bob Nardelli
ha!
Fantastic content. Thanks for sharing and helping other people learn investing.
Amazing! Thank you both.
Great video and process overall.
loved the video. Is there a similar one breaking down Brian Stoffel's Anti-fragile framework? thanks guys!
It's old, but yes! ruclips.net/video/BxIP2miZKHc/видео.html
Incredibly useful information. Thanks, B&B!
Glad it was helpful!
Awesome guys great information have you had a good look into nano dimension
This is really great stuff! Thank you
You're very welcome!
Brian, I downloaded the spreadsheet, very useful, thanks. I found that the first 5 Moat related rows should be averaged (sum d11:d15)*15/70, if you would like to obtain a maximum score of 100, but it doesn't appear that way in the SS. Is this an error or a misinterpretation from my side? Thanks again, I think you do a great job educating all to make us better investors
Hi German! No -- the MAX moat score is 20 (15 for an individual moat number and 5 for if its widening). Otherwise, the moat would be on the only metric that mattered.
@@BrianFeroldiYT OK, so, if this is true, in the HD example you gave them 15 out of 15 even though you consider they have no network effect, don't benefit from switching cost, etc.) Is this right? Thanks
Once again: thank you both!
You're welcome!
Glad you found it helpful!
Hi Brian! Many thanks for a really good video. I have just started my journey in valuing companies so I can get a better picture of where the company is going, as well as in the what phase. For this I need tools that give me real values. Where can I pick up your spreadsheet?
There's a link in the video description -- but you can use this: brianferoldi.com/checklist
Brain^2 thanks so much for this insightful video. I have a degree in finance and feel like I learnt more about stock analysis in this video.
I have a question in regards to organic growth runway. I note that you said you dont want to see revenue growing from acquisitions, but in your check you simply looked a revenue growth. How do you know that the increase in revenue wasnt due to an acquisition that year ?
Thanks in advance gents really appreciate your work.
Thanks Scott! That's where studying the business & business model comes into the picture. Sometimes organic vs. inorganic is broken out, other times its not.
bookmark: 36:54
Awesome video. You guys rock! Thank you.
Thanks for watching!
how can one access to the check list? I can't. Maybe something is wrong.
Yesss! Thanks a lot Brian! :)
Sure thing!
Hi Brian(s), many thanks for shooting this vid, so much insight into how to assess a stock before investing. Quick question and forgive the ignorance upfront! Is there a video in your arsenal similar to this but aimed only at "growth" stocks, or stocks that are in the early stages?
Thanks Michael! No, we don't have one on that yet
When assessing the balance sheet, it is useful to consider the ability to repay the debt. Instead of simply looking at cash and debt, relate it to EBITDA. HD has below 2.0x, which is very solid, and committed publicly to maintain this level.
Yes. Details like that can matter. Balance sheet analysis depends on the stage of growth the company is in. HD is mature, so cash vs. debt isn't as meaningful now as when it was a growth stock.
@@BrianFeroldiYT thank you! I love your structured approach. Would love to have a checklist tailored for value companies as well. Anyways, keep on doing great videos!
Could you do a video on cardlytics?
Thank you enjoyed this alot.
Our pleasure!
it seems to me that all your criteria, except one (returns on capital) keep track of the price on the stock and whether it is overvalued. I would assume that AAPL would score very high but for some people, it might be overpriced. Shouldn't you add more value vs price criteria in your score?
For a hypothetical "magical" company, can a moat score possibly be 75 or is there a max cap for moat section of the checklist?
Max score on moat is 20.
thanks, learned alot!
Glad it was helpful!
Hello Brian x2.
Just went and downloaded your checklist. Hope I made you smile.
How often do you update various resource links that you have in there?
Reason I ask is if I download a local copy, wont have the latest updates that you might add from time to time.
I know you've set it for free so I can go and download it for free next time however trying to understand how frequently I should be doing that?
Many Thanks and have a lot of respect for what you are doing.
Thanks Harsh Upreti! We DON"T publish the scores if that's what you are referring to. However, there are some links in there to investing resources. Those might change occasionally. To your point, its free to download, so you can always download it every 6 months to keep up with the changes!
At what point do you factor the value of the company?
Here's a link to how I think about it: twitter.com/Brian_Stoffel_/status/1404805300121657357
@@stoffelbrian Thank you Brian !
Brian does this still apply to companies like Shopify who are now trading at 50 P/S
@@1433443 All I can say is, I'm not selling a single share of SHOP I own *unless* it becomes too big in my port.
@@stoffelbrian can someone copy/paste it here. Twitter is blocked for me ony browser...
This is helpful, thank you.
Glad it was helpful!
loving your work boys phenomenal stuff and even after years of investing you have made me rethink my approach
Glad to get the wheels turning!
Sir, what is your top holding portfolio looks like? If you wouldm't mind sharing
Will probably relase a video at year end
@@BrianFeroldiYT thank you sir, so Im doing research on these tickers which I will be holding for long terms, however I’d love to see a video about them if you guys ever had time, they are “ GENI, CTRM( only 1 employee), PSFE”. Thank you a lot for your efforts
Amazing video! Very inspiring..
Do you have any alternatives for YCharts?
Stockrow.com is the best I can think of
@@BrianFeroldiYT Thanks a lot!
Amazing! Make this the channel intro video!
Great idea!
I will!
Thank you so much for walking through this line by line. I followed along for the entire hour or so while doing my own score for $AXON, which netted out at 94. Does that seem high? Anyway, thank you so much for doing it.
Yup, that's high! But the score is subjective. As long as your are consistent, that's what matters!
@@BrianFeroldiYT I may be too optimistic about its moat, but seems to me that the deals they strike w/ authorities are difficult to switch away from. First-mover, founder-led, great mission statement ... I'm a bit rosy.
Golden nuggets here... thank you Brian! (I happen to know your work because your twitter was routinely shared by a popular Chinese youtuber with approx. 58k followers in his investment channel)
A trivial question from a beginner like me...For a growth company, is all cash and no debt a good thing? (financial resilience)
Didn't know that! And yes, that's my preference for a growth company!
@@BrianFeroldiYT Good to know! Sometimes I see some companies have enough cash to pay off their debt but they seem to leave like that (U). I mean having some percentage of debt for expanding their business while having some more cash at hand to deal with contingencies or whatever, wouldn't this be a good strategy for a growth company?
Yes, your tweets have been frequently used as a sort of "soul massage", to comfort or inspire people...maybe you did not know this but I think you have a high reputation in that channel (for example: ruclips.net/video/ZmYsKwZQK5Y/видео.html )
I tried filling it up for TTD and had to constantly fight the bias in rating it higher for subjective fields since I really like the company. How do you stay neutral when you're filling it up for a company that you really like?
If you aren't brutally honest & fair, the checklist will bias you towards stocks you WANT to own, not those you SHOULD own
@@BrianFeroldiYT That's true. Few points here and there and the end score may change. May be I should read several bear cases before filling up the checklist 🙈
Too good Brian
Thank you, Abhi Patil!
amazing channel
in fact exceptional
Appreciate that Joyanta!
What does GDP mean in Organic growth rate category?
Same doubt here! My guess is Gross Domestic Product but I dont think I am right.
Gross Domestic Product
Can we have Brian Stoffel's checklist step-by-step guide too! Thank you!
ruclips.net/video/BxIP2miZKHc/видео.html
@@BrianFeroldiYT how did i miss that! Thanks Brian!
Can you create a TIKR account without an invite code?
tikr.com/brian
I look at CEO and leadership, current and projected growth rate, current market cap, projected industry cap, and X factor that gives this company and edge over others.
Good points Michael!
I'd give HD a negative score on Brand value. It is widely known to sell junky products -- even brand-name products from other companies. They tell the other companies to give them their worst quality products at the lowest possible price. Or, at least that's their reputation.
Since AWS didn't exist before 2007 (or so), would you really have given Amazon a high score for optionality at that point?
What does SFS stand for?
Stocks from Scratch
@@BrianFeroldiYT of course! How did I miss that lol
@@BrianFeroldiYT BTW amazing content! I have watched every single video! I have started using both checklists and learning ton!!! THANK YOU TO BOTH!
This is awesome
Like without even watching.
I know it will be awesome 🤓🤓
:)
Checklist $CLOV video?
But this will do thanks for the amazing content 💪
Recording later today!
@@BrianFeroldiYT sounds like power thank you 💪
Sorry but I can't agree with "debt eliminates options" statement. Debt sometimes is much better than cash for capex. Over all I really appreciate your knowledge.
To each, his own! I don't like debt of any kind.
Can you do SKLZ company :)
On our list!
as Home Depot hits new highs
Breakups aren’t always concerning. Many of those companies would be more valuable broken up.
Big headphones. Big.
Where's my cookie?
Looking at the last five years for the stock prices, not very valuable. You should be looking at at least 10 years or more. If you had looked at Kathy Woods fund in spring of 2021, they would’ve gotten four out of four. They should be getting zero out of four on everything. well it’s true that this would have been the same for the 10 year outlook, they had only been around for five or six years at that point, which only bolsters my point.
Elon Musk is not the founder of Tesla btw!
Technically, you are correct. But, for all intense and purposes, he's the founder.
Timestamps would help your nice videos.
Yup -- this one is super old. We sucked at RUclips back then. We suck less now.
The focus on mission statement makes no sense to me. Literally no one cares about Home Depot’s mission statement.
Loved the round-through, albeit long-winded, but not long-winded enough. I get that this is a basic run-through of concepts, but there are so many technical, not to mention idiotic cultural misconceptions and dichotomies in here, that if you're not a DOW or S&P500 investor of US trading established companies functioning MAINLY in the US, stay away from this like the plague! There's so much US subjective non-quantitative views/opinions here that it would scare any rookie emerging market investor to their core, and for absolutely no reason. ps. in China alone, there are over 3500 languages, and if you combine Cantonese, and Mandarin, they provide a pretty good marketbase for an established, innovative company, that isn't from the US of A that only provides a service in English. P.S. who the fuck grows by Organic measures? This isn't the 1950's! Frankly, I have so many question marks, there are too many to mention, we'd go on for weeks if you were to answer them all. Classic US BCG undergraduate shit stuff just to please the one or other US SME 10+ CEOs, but most likely just to drive youtube/Twitter clicks for Reddit or Piratebay retail investors I bet. lol But hey, call me a Fool if you like...
Great video and process overall.