Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded, and over
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
Speaker 1: are here illegally, your next you will be fined nearly
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
Speaker 1: never return. But if you register using our CBP home
Speaker 1: app and leave now, you could be allowed to return legally.
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
Speaker 1: border and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security.
Speaker 3: We talk about like the core analysis a lot in companies.
Speaker 3: But you you're you're real big on breaking companies down, right,
Speaker 3: So can you just take a couple of minutes and
Speaker 3: just kind of explain your process as far as and
Speaker 3: shout out to my guy jose We gotta get him
Speaker 3: on head the Millennial money mentor. He's a really dope
Speaker 3: dud yea should follow him on Instagram and he had.
Speaker 2: A dope jose Man. Yeah that's what yep, Yeah, he had.
Speaker 3: A dope post. But he kind of broke down how
Speaker 3: to look at the company's balance sheet. Talked about like
Speaker 3: dead assets, liabilities. So can you just talk about like
Speaker 3: a few things that you might look at when you're
Speaker 3: evaluating a company.
Speaker 4: All right, So for me, the first thing I want
Speaker 4: to do is I look at the company profile. I
Speaker 4: need to know everything that I can understand about that
Speaker 4: business before I even look at the numbers. Because what
Speaker 4: happens is we have this, we have this thing that
Speaker 4: where when we see the numbers, the numbers swear us
Speaker 4: one way or another. Right the numbers. We can look
Speaker 4: at the numbers a little bit like oh, a million dollars,
Speaker 4: a billion dollars, you go to we go to putting
Speaker 4: this idea in our head already we look at the
Speaker 4: stock price. The first thing we see about it is, oh,
Speaker 4: I'm a way with the stock price to fall, not
Speaker 4: even understanding the value of a business. So for me,
Speaker 4: what's important for me is understanding not only what the
Speaker 4: business is, what they do, understanding their core business and
Speaker 4: their core asset.
Speaker 2: The next thing is actually seeing financially.
Speaker 4: How have they grown? So I'm looking for financial growth.
Speaker 4: So now one of the things you're going to look
Speaker 4: at is that balance sheet. Right, fundamental analysis. Right, No
Speaker 4: matter what business you are, no matter where you are
Speaker 4: in business, the objective of your business is to make money.
Speaker 2: That's the way you can survive. Right.
Speaker 4: So and looking at a company's balance sheet, we want
Speaker 4: to look at the balance sheet tells us about assets
Speaker 4: and liabilities that a business has. Right, So you'll see
Speaker 4: four factors on it that's really important. You'll see current assets,
Speaker 4: current liability. So what current assets and current liabilities mean?
Speaker 4: Money that's due to the business or money that's owed
Speaker 4: out to the business between now twelve months current the
Speaker 4: word current right Now, When you take the current assets
Speaker 4: and the current and you take the current liabilities away,
Speaker 4: that give you what's called working capital.
Speaker 2: Right.
Speaker 4: Working capital is the money that the business has on
Speaker 4: hand on deck are due to them within a twelve
Speaker 4: month timespan.
Speaker 2: Think about this.
Speaker 4: A lot of businesses that are going bankrupt now had
Speaker 4: negative working capital. Right, It's kind of like somebody telling
Speaker 4: you have an emergency fund.
Speaker 2: It's equivalent to that. Businesses operate the same way.
Speaker 4: They have to have money that they can use in
Speaker 4: case something happens within a twelve month time span.
Speaker 2: They need that.
Speaker 4: Then you'll have total assets total liabilities. You want that
Speaker 4: to be positive. When you take all a we a
Speaker 4: companies total liabilities from the total assets, you want that
Speaker 4: to be positives.
Speaker 2: Overall that the company is ain't good financial.
Speaker 4: So also we look in that is we can go
Speaker 4: to the actual income statement.
Speaker 2: On that income.
Speaker 4: Statement, we'll see we'll hear what's called top line and
Speaker 4: bottom line group.
Speaker 2: Right.
Speaker 4: Top line equals the revenue that comes into a business. Right,
Speaker 4: so all the money that comes in through sales is
Speaker 4: called revenue. Bottom line again is the profit net gross
Speaker 4: is everything net is once you take everything away, this
Speaker 4: is left over, right, So what we want to look
Speaker 4: at is when we're looking at the revenue, there's this
Speaker 4: thing called cost of revenue.
Speaker 2: So now we need to see how much did it
Speaker 2: cost the business to make bring this revenue in.
Speaker 4: So that's marketing, that's advertising, that's whatever they had to
Speaker 4: do to bring that in. So you're gonna take that cost,
Speaker 4: the revenue from the revenue, and then what's left from.
Speaker 2: There, we'll see where the gross, where.
Speaker 4: The net isn't there, and then we'll go to the
Speaker 4: income statement, I mean the balance sheet, and we'll look
Speaker 4: that the assets and liabilities and we can get into
Speaker 4: cash flow statement because that's what's important to me. What's
Speaker 4: important to me is cash flow. I want to also
Speaker 4: see the balance sheet positive. I want work in capital
Speaker 4: be the positive, but I want to see cash flow positive.
Speaker 2: Cash Flow is the money that's going in and out
Speaker 2: of a business.
Speaker 4: We want that to be positive because if the if
Speaker 4: the business is not investing money right, if the business
Speaker 4: is not loaning money right, if the business isn't investing
Speaker 4: shareholder capital right, there's some metrics that we look at.
Speaker 2: We look at all o I S, return on invested
Speaker 2: capital right.
Speaker 4: Businesses are actually just like banks, right, because a business
Speaker 4: is like, yo, we got all this money. We need
Speaker 4: to do something with this money. So a business will
Speaker 4: literally go to another business and be like, look, you
Speaker 4: got one hundred and twenty billion dollars.
Speaker 2: On you on your on your book.
Speaker 4: That you ain't doing nothing with Instead of me getting
Speaker 4: a bank loan, let me get a loan from you
Speaker 4: a business like okay, cool, we'll give you that.
Speaker 2: We'll give you that loan. Businesses do this all the time, right,
Speaker 2: and so what.
Speaker 4: Gets some business is called up and it's getting into
Speaker 4: something a little different is a lot of businesses will
Speaker 4: have these share buy backs. This is another thing that
Speaker 4: can cause businesses to go bankrupt because what happens is
Speaker 4: a share buy back is when the business takes.
Speaker 2: And buy some of it shares off the market.
Speaker 4: So when a business buys some of it shares off
Speaker 4: the market, this increases the stock price. So one of
Speaker 4: the most important things in business and investing. People always
Speaker 4: say that the customer is always right.
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Speaker 1: An illegal alien from Guatemala charged with raping a child
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
Speaker 1: filming and selling child pornography in Michigan. These are just
Speaker 1: some of the heinous migrant criminals caught because of President
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
Speaker 1: crossings are at the lowest levels ever recorded. Over one
Speaker 1: hundred thousand illegal aliens have been arrested. If you are
Speaker 1: here illegally, your next you will be fine nearly one
Speaker 1: thousand dollars a day, imprisoned and deported, you will never return.
Speaker 1: But if you register using our CBP home app and
Speaker 1: leave now, you could be allowed to return legally. Do
Speaker 1: what's right. Leave now. Under President Trump, America's laws, border
Speaker 1: and families will be protected.
Speaker 2: Sponsored by the United States Department of Homeland Security give.
Speaker 4: That term inside of a store on the management supervisor level.
Speaker 4: Once you get into the investment level, the number one
Speaker 4: rule is add value to shareholders. How can we add
Speaker 4: value to shareholders? One of the ways we add value
Speaker 4: to shareholders is by buying that shares increasing the stock price.
Speaker 4: That's how we add value. Right, So now check this out.
Speaker 4: You're supposed to take money that you make and have
Speaker 4: it set on side for a rainy day. But instead
Speaker 4: you have greedy CEOs and what they do is every
Speaker 4: time they have money, they're buying back shares. They're consistently
Speaker 4: buying back shares. So if you consistently buying back shares,
Speaker 4: true enough, you are adding value to shareholders. But when
Speaker 4: times like this, something that comes out of nowhere, now
Speaker 4: your business can't float because you've now bought share buy
Speaker 4: back three years in a row and you have no
Speaker 4: money on the side. While you have companies like Berkshaw
Speaker 4: have to weig, Microsoft, Google, Facebook. They literally have one
Speaker 4: hundred billion dollars eighty billion dollars. Larn Buffet has one
Speaker 4: hundred and thirty two billion dollars money sitting right there.
Speaker 4: Microsoft has one hundred and forty eight billion dollars. Apple
Speaker 4: has one hundred they had one hundred and ninety billion
Speaker 4: dollars sitting there not doing nothing with it. These are
Speaker 4: the type of big is we want to deal with.
Speaker 4: So those are some things that I person to look
Speaker 4: at without going too too deep.
Speaker 2: It is keeping on a you know, on a level.
Speaker 2: We often dissect this.
Speaker 4: You want to look at working assets, I mean current assets,
Speaker 4: current liabilities.
Speaker 2: Take those away, you'll get working capital.
Speaker 4: You want that to be positive, and then you'll have
Speaker 4: total assets, total liabilities.
Speaker 2: You want to take the assets from that.
Speaker 4: You want that to be positive, and you want to
Speaker 4: cast go from the business to be positive.
Speaker 2: I hope I ain't go too deep. I try to that.
Speaker 2: I just I just had one follow up.
Speaker 3: So everything you said was was free jewelry. I hope
Speaker 3: everybody paid attention put them put them houses up on YouTube.
Speaker 2: Shot like I once again shout to my gout host.
Speaker 3: He had a post and he said, like he goes
Speaker 3: to Yahoo finance to find out this stuff, like do
Speaker 3: you use y'aho find Like what what website do you
Speaker 3: use to actually look to see information?
Speaker 4: Yahoo finance is good, but out right it's it's twenty
Speaker 4: twenty right now. We've into the second quarter.
Speaker 2: For some businesses.
Speaker 4: You'll go to Yahoo Finance and it'll still say twenty eighteen.
Speaker 4: You know what I'm saying. So you can use that.
Speaker 4: Somebody put it in there. You can use SEC dot
Speaker 4: gov or edgar. But for me personally, I'm going straight
Speaker 4: to the company website. I'm going straight to the website.
Speaker 4: I'm gonna straight to the investor relations page.
Speaker 2: I'm gonna talk my talk. I'm gonna see, I'm gonna
Speaker 2: look at transcript. See. I'm an avid reader.
Speaker 4: I'm a learning machine, right, So I would look at
Speaker 4: I'll look at an SEC dot gov all day.
Speaker 2: I'll look at investor relation report all day.
Speaker 4: I'll look at ammal reports from four years ago, to
Speaker 4: see how the revenue has consistently grown, how the income,
Speaker 4: how the earnings have consistently grained.
Speaker 2: As it's great as a I'll say this like as
Speaker 2: a quick, as like something quick to go to.
Speaker 4: But if you go there and it's twenty twenty and
Speaker 4: they still got four quarter twenty eighteen, now you're gonna
Speaker 4: be stuck.
Speaker 2: You don't know what to go to now. So now
Speaker 2: you gotta go to so again, SEC dot up.
Speaker 4: And I'm gonna be real too, that site can't confuse
Speaker 4: a lot of people SCC DOC. If you don't know
Speaker 4: what you're going on to look for, where you get
Speaker 4: lost there.
Speaker 2: So the next best thing.
Speaker 4: Is to just go to the investor relations phase of
Speaker 4: any company, right and just and they'll tell you everything
Speaker 4: you need to know there. So for me, I'll use
Speaker 4: the SEC. I'll use it, I'll who finance. But it
Speaker 4: ain't my goal to it ain't my goal. There's a
Speaker 4: whole lot, whole lot of houses going up there.
Speaker 2: Real quick, even on the back side. Like remember like
Speaker 2: in the mid two thousand and early two thousands.
Speaker 6: When the artists will come out and they'll be like, yo,
Speaker 6: he sold six hundred thousand, and you're like, I don't
Speaker 6: hear anybody playing this record though, right, it's a corporate
Speaker 6: version of universal and depth sham and buying.
Speaker 2: All them records facts, and like you said, when.
Speaker 6: You get it now you have no real money to
Speaker 6: invest into the actual business and to piggyback off what
Speaker 6: Trump saying, Like when you're looking at those numbers, when
Speaker 6: you go to the technical side, go look at Ford
Speaker 6: and see how their balance sheet was. Ford's been in
Speaker 6: trouble for a long GM been in trouble for a
Speaker 6: long time, and that's why we try to keep it
Speaker 6: simple with the analogies and the comparisons, like if you
Speaker 6: would not want to drive a Ford or a GM,
Speaker 6: then why would you want to put your money there?
Speaker 6: And that's why I asked them what kind of phone
Speaker 6: you have? Most people have iPhone. It's an easy way
Speaker 6: to say into that. So those buybacks be careful because
Speaker 6: if the company is doing well, you're going to have
Speaker 6: enough institutions, hedge funds and retail investors that buy on
Speaker 6: their own and they don't have the records back to
Speaker 6: get these things up in the market.
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