Automating Your Finances
episode
DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing
18 min
1 speaker
2 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Hey, this is Allie, and thanks for listening to the show. Give us a five-star review where you listen and share this episode with someone who might need to hear it. Now, enjoy the show. Welcome back. Ladies and gentlemen, you're listening to another edition of DIY Money.
DIY Money. Where should I get Logan? All the things. This business is so interesting right now. It's such a fascinating time. It's a fascinating time to be like cutting my teeth is now like managing the firm and managing the investments for the firm. There's a lot of exuberance in the market. As you know, there's a lot of people that are getting also engaged in the market that have never been engaged in it before. I think that's a really big positive to like the SpaceX IPO and good markets for several years. Now, some of these people are probably going to get hit. pretty hard the next time we go through a market decline. But I do find it really cool to see young people start to have an interest in markets that have never had interest in markets before.
But now it's like front page news. The SpaceX IPO, I think, stands out as something that has really engaged... way more people than I ever expected, like family members, cousins, friends, all these people that reach out to me and saying, hey, what do you think about the market here? What do you think is going on? It's really a fascinating time that is interesting people and getting them engaged in the markets.
I'm going to try to create an analogy or a metaphor, and I've not pre-thought this. These are always dangerous. But do you enjoy a McDonald's cheeseburger? Occasionally, yeah, sure.
Very rarely.
I can't tell you the last time I had a McDonald's cheeseburger. I haven't had one in forever. I love a McDonald's cheeseburger. I don't know why. I don't know what it is. Two pickles. Just the perfect, have you ever seen them put the ketchup? They have a machine. The bun, it's warm. The patty, I don't know what it is. Just love it. So good. Yeah. Now, when's the last time you had a McDonald's cheeseburger? It's probably been a year at least. I can't tell you again the last time. And why have we not had a McDonald's cheeseburger? Because they're horrible for you. We know what's in it or we don't know what's in it. And therefore, that's a problem. And therefore, when we became educated about the McDonald's cheeseburger, we realized it's probably not the best thing to put in our body.
But it's so good. Love it. Okay, every semester I bring students into the classroom. You were one years and years ago. And my job is to not just talk markets and, you know, about what's going on. My job, what I am compensated for, is to teach them how to value companies.
That's why they call them the Godfather.
There are some basic methodologies by which you value companies, meaning what am I willing to pay for this stock? Right. For example. If you were to add up what lumber costs, drywall, outlets, lights and wiring or anything in a house, you could add all that up. You could put it together and say, okay, all of this costs this. Now, there would be needing somebody to build it. So let's say we had to pay somebody over a six-month, 12-month... This is what this house should be valued at. And then you look at the sticker price and you go, oh my gosh, wait a second. That's way too much, right? But if you didn't know that, if you didn't do the work to see what it costs in the lumber and the outlets and the drywall, like literally at Home Depot or Lowe's, you would have no idea.
No clue. Okay.
Okay.
Cheeseburger. Unless you knew what was in it or don't know what's in it. You'd probably eat a cheeseburger every day from McDonald's because they're so good. Okay, so good. I teach these kids and the minute they start looking at the stocks that are moving this market with any one of the methodologies that we teach. You remember, I teach three predominant methodologies. They're used on Wall Street every day. Every student comes back with a, they scratch their head and they go, Professor Tetro, I think I'm doing this model wrong.
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