Thanks for watching! Grab a free PDF of Buffett's financial rules of thumb here: longtermmindset.co/buffett
@Zizook
20 күн бұрын
This is actually fantastic, I have been having trouble evaluating net income from a lot of companies. But when I see their operating income just increase smoothly this will help me evaluate it better.
@BrianFeroldiYT
20 күн бұрын
Glad it was useful!
@JD-im4wu
20 күн бұрын
So FCF is now most definitely more👑 then ever. Thx for updating us Brian! The overlords keep muddying the waters for us little investors.
@BrianFeroldiYT
20 күн бұрын
Thats a good takeaway
@minimalistic_banhaus
7 күн бұрын
The QoQ volatility in net income is a much smaller problem than the mega volatility created if you never update the value of investments and then you have an absolutely ginormous profit or loss in just the single quarter you sell the investment. The best system could be a rolling average of the value of the investment over the past year or so to smooth out market fluctuations.
@Flygal5
19 күн бұрын
Great content. But it is not improved by speaking so fast. I know you have heard it before, if you speak more slowly it will be better. I slow you down in the settings.
@BrianFeroldiYT
18 күн бұрын
Feedback like this is always appreciated
@raghuveermaduvinakody379
4 күн бұрын
I was a Corporate Banker for 35 years, engaged in Credit Risk analysis. Yes, FCF makes lot of sense. After all, Cash is the King!
@BrianFeroldiYT
4 күн бұрын
Agreed!
@Yatra-kj3zq
14 күн бұрын
Thank you Brian for educating us on net earnings.
@BrianFeroldiYT
13 күн бұрын
My pleasure!
@Tuberis
20 күн бұрын
Fantastic! You could also add to the legal manipulation practices the choice a company to report costs on first in - first out or last in - first out. This would manipulate even the gross margins that you so much focus on your videos. Another legal manipulation is bringing in the USA profits from abroad from different years. One more manipulation can be reporting the cost of production when a product is assembled in several countries and with this practice companies can chose to realise profits in countries where usually taxes are lower. It is mostly companies with physical products that use these practices, or at least these examples I've learned about. Eventually the truth about the companies profitability will be exposed if looked at a period of five - six years, so only looking at one or two years can be misleading. I am not an accountant I was really surprised by all this creative practices that exist that makes evaluating business so difficult. Keep on producing these great videos. Also, thanks for listening and skipping the music.
@BrianFeroldiYT
20 күн бұрын
Excellent color!
@azulsimmons1040
20 күн бұрын
I did not know about this change. Interesting. That is definitely something to track.
@BrianFeroldiYT
19 күн бұрын
Glad it was useful
@richardgordon
14 күн бұрын
Really love your videos! Outstanding!
@BrianFeroldiYT
13 күн бұрын
Glad you like them!
@vasileiospaschalidis2322
20 күн бұрын
I think the best way to value businesses is the FCF as this is the best way to see the distributable earnings. If the business is heavily investing in CAPEX then OCF is the best metric while only for financial businesses Operating Income is.
@BrianFeroldiYT
20 күн бұрын
FCF > Net Income
@bachdinh3147
20 күн бұрын
@@BrianFeroldiYT I would be careful with that, as a business that pays a substantial sum in stock-based compensation would have much more FCF, but SBC is a real expense to shareholders. The business as an entity doesn't care as much about how many people own it.
@dontplayformenero
9 күн бұрын
Another great video. This is hugely helpful information to investors. And often things they would overlook, like the unrealised gains counted as GAAP NI. Thanks Brian
@danbradbury4067
14 күн бұрын
great video, subscribing
@BrianFeroldiYT
14 күн бұрын
Welcome!
@meza4593
17 күн бұрын
Yes pls more videos like this
@BrianFeroldiYT
17 күн бұрын
Will do!
@oluwapelumiotun6320
20 күн бұрын
Very insightful!!
@BrianFeroldiYT
20 күн бұрын
Glad you liked it!
@johndiana5276
19 күн бұрын
Excellent video!
@BrianFeroldiYT
18 күн бұрын
Thanks
@shankarbalakrishnan2360
16 күн бұрын
The greatest invention would be thinking outside the circle❤❤🎉🎉a good start would be by feeling
@jimd1617
14 күн бұрын
thank you 🤝
@BrianFeroldiYT
14 күн бұрын
Welcome 👍
@AGuardCap
20 күн бұрын
Absolutely fantastic video! Very appreciated!
@BrianFeroldiYT
20 күн бұрын
Glad it was helpful!
@peterwalker3119
19 күн бұрын
So EBITDA is more meaningful than EBIT because non cash expenses like unrealized gains/losses aren’t taken into account?
@BrianFeroldiYT
18 күн бұрын
My preferences is just to always look at free cash flow
@MoneyMathai
20 күн бұрын
Thank you for this amazing video. Learning a lot from your videos every week
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