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Back to Basics: Avoiding Financial Statement Yellow Flags
Manage episode 424501573 series 3422773
In this podcast episode, Andrew and Dave discuss "yellow flags" in investing, such as leadership changes, negative events, financial concerns, and slowing revenue growth. They use real-world examples like PayPal, Microsoft, and Square to illustrate the impact on company trajectory and emphasize the importance of observing these indicators for informed decisions.
00:00 Yellow flags could lead to deeper issues.
04:53 Management's job is to allocate capital effectively.
07:39 Gross margins signal company strength and advantage.
12:52 Management's choices, companies as serial acquirers.
15:11 Google's history of strategic acquisitions discussed briefly.
19:28 Competitors pulling ahead, be vigilant and proactive.
23:22 Concern about trend in grocery store performance.
25:53 Changing company mindset and culture takes time.
27:32 Change takes time, need patience for success.
32:01 Management avoiding tough questions raises significant concerns.
34:32 Honesty and accountability build trust with stakeholders.
39:08 Consider impact of employee incentives on shareholders.
41:31 Leaders' diverse backgrounds impact business success profoundly.
Today's show is sponsored by:
Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.
Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!
Start your free online visit today at Hims.com/INVESTING
Find great investments at Value Spotlight
Have questions? Send them to newsletter@einvestingforbeginners.com
SUBSCRIBE TO THE SHOW
Apple | Spotify | Google | Amazon | Tunein
Learn more about your ad choices. Visit megaphone.fm/adchoices
481 episodes
Back to Basics: Avoiding Financial Statement Yellow Flags
The Investing for Beginners Podcast - Your Path to Financial Freedom
Manage episode 424501573 series 3422773
In this podcast episode, Andrew and Dave discuss "yellow flags" in investing, such as leadership changes, negative events, financial concerns, and slowing revenue growth. They use real-world examples like PayPal, Microsoft, and Square to illustrate the impact on company trajectory and emphasize the importance of observing these indicators for informed decisions.
00:00 Yellow flags could lead to deeper issues.
04:53 Management's job is to allocate capital effectively.
07:39 Gross margins signal company strength and advantage.
12:52 Management's choices, companies as serial acquirers.
15:11 Google's history of strategic acquisitions discussed briefly.
19:28 Competitors pulling ahead, be vigilant and proactive.
23:22 Concern about trend in grocery store performance.
25:53 Changing company mindset and culture takes time.
27:32 Change takes time, need patience for success.
32:01 Management avoiding tough questions raises significant concerns.
34:32 Honesty and accountability build trust with stakeholders.
39:08 Consider impact of employee incentives on shareholders.
41:31 Leaders' diverse backgrounds impact business success profoundly.
Today's show is sponsored by:
Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.
Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!
Start your free online visit today at Hims.com/INVESTING
Find great investments at Value Spotlight
Have questions? Send them to newsletter@einvestingforbeginners.com
SUBSCRIBE TO THE SHOW
Apple | Spotify | Google | Amazon | Tunein
Learn more about your ad choices. Visit megaphone.fm/adchoices
481 episodes
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