business valuation

Clay Finck chats with Brian Feroldi about the valuation mindset spectrum, and how investors can determine which valuation approach investors should use when analyzing a company. Brian Feroldi is an expert content creator in the investing space and a writer and contributor to the Motley Fool.  IN THIS EPISODE, YOU’LL LEARN: 00:00 - Intro 01:32 - What the valuation mindset spectrum is. 04:50 - The long history of value investing. 10:00 - How investors should think about the valuation spectrum in regards to their own investment approach. 14:47 - Different valuation methods investors can use in their toolkit. 32:23 - Brian’s view on stock-based compensation. 42:45 - His biggest lessons from the investing the past couple of years. 46:27 - Where on the valuation mindset spectrum Brian prefers to invest. 46:53 - Why venture capital investors largely ignore Buffett’s #1 rule of investing. 52:43 - Brian’s updated reverse DCF analysis on Nvidia. 59:21 - His updated assessment of MercadoLibre’s progress. Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Check out our newly released TIP Mastermind Community. Brian’s free resource to master valuation. Brian Feroldi’s book – Why Does the Stock Market Go Up? Brian Feroldi’s Newsletter. Brian Feroldi’s Youtube. Check out our recent episode covering The Passionate Pursuit of Lifelong Learning w/ Gautam Baid or watch the video here. Follow Brian Feroldi on Twitter. Follow Clay on Twitter. SPONSORS Support our free podcast by supporting our sponsors: River Toyota Linkedin Marketing Solutions Fidelity Efani Shopify NDTCO Fundrise Wise NetSuite TurboTax Vacasa NerdWallet Babbel Learn more about your ad choices. Visit megaphone.fm/adchoices

Grab your notebook and get ready to dive deep.  Motley Fool Senior Analyst John Rotonti discusses how investors can value a company using the discounted cash flow model. This method is the fundamental way to determine if you’re getting a bargain or paying too much when you buy any stock.  Rotonti discusses:   - How to pick a discount rate for investments.  - The key difference between fair and intrinsic value. - How to project free cash flows.  Have an investing question for John? Call 703-254-1445, leave a voicemail, and he may answer your question in an upcoming episode.  Additional resource: https://www.fool.com/investing/2022/01/19/expectations-investing-qanda-mauboussin-rappaport/  Stocks discussed: IBM, NEE, PEP Host: John Rotonti Producer: Ricky Mulvey  Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

My guest this week is Bill Gurley, a general partner at Benchmark Capital and one my favorite investment thinkers. As you’ll hear, despite enormous success through his career, Bill is clearly still in love with business and investing. Where many might discuss past glories, I’ve been incredibly impressed with how both Bill and his partners emphasize the current portfolio and market landscape. I’m thankful to have had the chance to speak with him in this format. I hope you enjoy our conversation. For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Show Notes 1:13 - (First Question) – The idea of increasing returns             1:21 – Competiting Technologies, Increasing Returns, and Lock-in By Historical Events             2:07 – Complex Systems Theory – Santa Fe Institute 4:35 – Markers that could be a sign of network effect in a company 6:27 – The opportunities for companies to capture network effect 8:46 – Are there certain teams/leaders that are more conducive to leading a network effect company 11:55 – Liquidity quality 13:35 – How important is the revenue model at the beginning 15:59 – Fascination with Nextdoor             17:56 – Paradox of Choice 18:39 – Finding opportunities 20:17 – Potential marketplaces and assets that could be commoditized             20:20 – All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces 21:39 – Usage yield on the world’s assets 23:50 – Has technology changed the world of value investing 26:28 – Hyper niche marketplaces 27:52 – Challenges of labor marketplaces 30:12 – User generated content businesses 32:44 – People who are capable of building UGC businesses 33:16 – His interest in Discord 34:31 – Factors of a healthy marketplace 37:57 – Fools’ gold in marketplace businesses 39:04 – How influx of cash is impacting the marketplace business landscape             40:43 – All Revenue is Not Created Equal: The Keys to the 10X Revenue Club 43:20 – How does the influx of money into the space impact him 46:44 – Spending money to attack top brands 50:32 – Regulatory capture 53:36 – His thoughts on the IPO market 57:49 – How did he realize this was his passion 1:00:42 – Qualifying his passion 1:01:52 – Favorite thing about working with entrepreneurs 102:48 – Honing your craft 1:04:33 – Making yourself a good mentor 1:05:56 – Kindest thing anyone has done for him   Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

My guest this week, back for a second conversation, is Pat Dorsey. Pat ran equity research at Morningstar before leaving to start his own asset management company: Dorsey Asset Management. His areas of deep interest are competitive advantage and capital allocation. He believes that capital allocation should be in service of competitive advantage and invests in a concentrated portfolio that he and his team feel embody these ideas.  If you have not already, I strongly recommend listening to our first conversation, which is a sort of crash course on moats. In this conversation, we cover different ground. We spend much more time on individual stocks like Facebook, Google, and Chegg, using them as examples to explore Pat’s investment philosophy and strategy.  Across a few conversations with Pat, I can tell he is in love with this stuff, and I always enjoy talking to investors like him who so passionately pursue and edge. Please enjoy round two with Pat Dorsey.   For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Links Referenced Pat Dorsey's first appearance on the podcast HQ - Live Trivia Game Show   Books Referenced World After Capital Principles: Life and Work   Show Notes 2:15 – (First Question) – Pat’s methods for valuing a business  4:17 – Is this process done after they would first identify potential targets for investment  5:11 – Pat’s take on how the market classifies stocks as growth vs value  6:40 – Qualitative insights and why the market can’t price them very accurately  9:57 – The business model behind zero marginal cost distribution business model  12:00 – Network effects and the potential downside to them down the road  13:54 – Valuing Facebook as a business heavily reliant on network effects 16:45 – What would have to change for Pat’s position on Facebook to radically change  18:58 – Most important lessons that a smaller/private business could learn from Facebook or Google’s business models  19:48 – Where is Amazon in Pat’s portfolio  22:06 – An example of where primary research led to a big surprise about a company  24:05 – The value of travel in this business, starting with recent travel to India  26:05 – Why are they targeting India and Japan  27:24 – How does he think about the risk of investing in foreign markets  29:52 – His thinking on relative vs absolute market share  31:26 – Exploring the SaaS business model  34:35 – The application of moats and pricing power with SaaS businesses 34:36 – Pat Dorsey's first appearance on the podcast  40:07 – Other models that Pat explores and how to screen for them  41:37 – How does he parse the difference between attention and demand  43:19 – How would Pat monetize something like HQ - Live Trivia Game Show that has aggregated massive amount of attention  45:19 – How does Pat react to the idea that attention is scarce and human capital is so crucial 45:14 – World After Capital  47:04 – How does Pat evaluate human capital in a business  48:09 – Experience in starting an asset management business  50:20 – What are the levers that are biggest value drivers in the asset management business  53:57 – Pat’s view on the strength of the relationship between risk and return        57:06 – The most risk Pat has taken in the face of uncertainty  59:23 – Favorite recent learning resource 59:43 – Principles: Life and Work Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

Rob talks about paying yourself from your business. When and how much to get paid. Don't feel guilty and pay yourself a fair wage. It is not a real business if it can't pay you.

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Rob Moore is an author of 9 business books, 5 UK bestsellers, holds 3 world records for public speaking, entrepreneur, property investor, and property educator. Author of the global bestseller “Life Leverage” Host of UK’s No.1 business podcast “Disruptors”

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