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@ifb_podcast
Dave Ahern
$6.8M follower assets
Breaking down the stock market for beginners by using everyday language. Co-host the IFB podcast with Andrew Sather. LIke everyone, trying to get a little smarter everyday.
81 following747 followers
Does $FICO Have a Moat?
I think it does based on the below observations. $FICO's strong competitive moat sets it apart in the industry. Below are some key elements contributing to FICO's moat:

  1. Established Brand: FICO has built a reputable and recognized brand over several decades. Its credit scoring models, particularly the FICO Score, have become synonymous with credit assessment and risk management. This brand recognition creates a significant barrier for new entrants attempting to challenge FICO's position.

  1. Intellectual Property and Data: FICO's credit scoring algorithms and analytics models are backed by extensive intellectual property and proprietary data. The company's long research and development history has resulted in sophisticated predictive analytics capabilities, which are difficult for competitors to replicate. This intellectual property acts as a protective barrier for FICO.

  1. Deep Industry Expertise: FICO has developed deep expertise in the financial services industry, particularly in credit risk management. Its understanding of industry dynamics, regulations, and evolving customer needs gives FICO an advantage over competitors. This expertise is not easily acquired by new entrants and provides FICO with a sustainable moat.

  1. Network Effects: FICO benefits from network effects, as its credit scoring models are widely adopted by lenders and financial institutions. The more lenders that use FICO's scoring models, the more valuable the models become, as they continuously improve and refine based on the growing data network. This network effect strengthens FICO's position and makes it challenging for competitors to displace them.

  1. High Switching Costs: Switching from FICO's credit scoring solutions to a competitor's alternative can be a complex and costly process for businesses. FICO's established integration with various systems, customized solutions, and the reliance of lenders on their scoring models create high switching costs, deterring customers from seeking alternatives.

Overall, FICO's competitive moat is fortified by its established brand, intellectual property, deep industry expertise, network effects, and high switching costs. These factors collectively create significant barriers for competitors and enable FICO to maintain its leadership position in the credit scoring and analytics industry.

Some competitors include:

  • Experian
  • Equifax
  • Transunion
  • Moody's
  • S&P Global

Still working on my analysis of $FICO, but it's an intersting company.
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Young Money Capital
@youngmoneycapital3d
Yes, FICO has a moat
+ 14 comments
How to Calculate the Price to Sales Ratio
The price to sales ratio (P/S) is a valuation metric that compares a company's stock price to its revenue.

Check out this infographic below to learn more about the P/S ratio and how to use it to value stocks!

Hope it helps!
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Joshua Simka
@tomato3d
Another great graphic! Of course you used $NVDA as an example :)
+ 3 comments
Three Investing Maxims from Seth Klarman
Seth Klarman is a highly respected American investor and hedge fund manager. He is the founder and CEO of The Baupost Group, one of the most successful hedge funds in the world. Klarman's investment record and approach have earned him a reputation as a value investing guru.

Klarman is also an accomplished writer, with his book Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor. The book was published in 1991 and is considered a classic text on value investing.

During his time at Baupost, he has generated 15% returns annually, he is worth listening to....

His emphasis on thorough research, long-term perspective, and disciplined decision-making has contributed to his success as an investor. Klarman is known for his conservative and cautious approach, prioritizing capital preservation and risk management. He is also known for avoiding popular market trends and being willing to hold cash when suitable investment opportunities are scarce.

Here are three simple lessons to help you become a better investor:

  1. Patience and Discipline: One of the key investing lessons from Klarman is the importance of patience and discipline in the investment process. Klarman believes in conducting thorough research, waiting for the right opportunities, and being disciplined enough to stick to his investment strategy even during market fluctuations or periods of uncertainty.

  1. Margin of Safety: Klarman emphasizes the concept of the "margin of safety," which refers to the practice of buying assets at a significant discount to their intrinsic value. By focusing on investments with a built-in margin of safety, Klarman aims to protect against downside risks and increase the potential for long-term returns.

  1. Contrarian Thinking: Klarman is known for his contrarian investment approach. He looks for undervalued assets in sectors or companies that are out of favor with the market. This approach involves going against the herd mentality and having the conviction to invest in opportunities that others may be overlooking or undervaluing. Klarman believes that contrarian thinking can lead to finding attractive investment opportunities with favorable risk-reward profiles.

Simple, but not easy ideas, and I hope they help you as much as they have me.

Who Do You Think Will Have the Best Returns Over the Next 10 Years?
Who Will Have the Best Returns over the Next 10 Years?
38%Visa $V
38%PayPal $PYPL
22%Mastercard $MA

18 VotesPoll ended on: 5/23/2023

Christian
@christian76216d
Gun to my head id pick Visa but I truly think you know my answer ūüėČ
+ 17 comments
Bird's Eye View of the Balance Sheet
Welcome to the Investing for Beginners podcast! Today’s episode will be another bird’s eye view of the last main segment of an annual report or 10k which is the balance sheet! Looked upon as the most boring section among the three, but there is more.

Timestamps of the episodes:
-Why should you care about the balance sheet in the first place? [02:13]
-Terms to note in looking at a company’s balance sheet. [04:04]
-Assets and liquidity go hand in hand. [06:36]
-How everything balances out in the balance sheet and why it can be confusing at first. [13:20]
-Two things investor should focus on the most in reading a balance sheet. [17:27]
-Three ways businesses drive value using their balance sheet. [23:17]
-The best balance sheet among the three businesses discussed. Spoiler alert: its a fruit. [25:25]
Note: Timestamps may differ and are approximate, depending on your podcast player.


Spotify
Bird's Eye View of the Balance Sheet
Listen to this episode from The Investing for Beginners Podcast - Your Path to Financial Freedom on Spotify. Welcome to the Investing for Beginners podcast! Today's episode will be another bird's eye view of the last main segment of an annual report or 10k which is the balance sheet! Looked upon as the most boring section among the three but there is more than meets the eye! Listen on as we discussed how important it is and how it drives the value of a business forward. Timestamps of the episodes: -Why should you care about the balance sheet in the first place? [02:13] -Terms to note in looking at a company's balance sheet. [04:04] -Assets and liquidity go hand in hand. [06:36] -How everything balances out in the balance sheet and why it can be confusing at first. [13:20] -Two things investor should focus on the most in reading a balance sheet. [17:27] -Three ways businesses drive value using their balance sheet. [23:17] -The best balance sheet among the three businesses discussed. Spoiler alert: its a fruit. [25:25] Note: Timestamps may differ and are approximate, depending on your podcast player. Book mentioned in the show- Financial Statements: A Step-By-Step Guide to Understanding and Creating Financial Reports by Thomas Ittelson For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com  SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Stitcher | Tunein You can find the transcript of today's show below: Learn more about your ad choices. Visit megaphone.fm/adchoices
Bird's Eye View of the Balance Sheet

Dupont Formula Breaking Down Return on Equity
The DuPont formula is a powerful tool for analyzing return on equity (ROE). It breaks down ROE into 3 components: profit margin, asset turnover, and financial leverage. By understanding how these components interact, you can gain insights into a company's ROE.

For a deeper look into using a Dupont analysis, check out this great article from my friends @stockopine

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stockopine.substack.com
PayPal - The Return on Equity Story
PayPal’s ROE using the 5-step DuPont analysis. Return on Equity measures the profitability that is generated for shareholders and is one of the fundamental ratios used by investors.
PayPal - The Return on Equity Story

StockOpine
@stockopineMay 17
Great visual Dave. Thank you for also sharing our article where we applied the DuPont analysis on $PYPL .
+ 2 comments
Buffett's One Dollar Test
Despite the accounting rules for earnings changing in the past few years, $BRKB continues to generate more than one dollar of market cap for every dollar earned.

Cool test to use to see how well a company uses its earnings to grow, we can also use retained earnings.
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Studying the Competition, Blackrock $BLK
As I learn more about $BN (long), I try to study competitors. Below is a quick outline of $BLK.

$BLK is one of the world's largest and most successful asset managers. Here are some of the key strengths that set it apart from its competitors:

Size matters and BlackRock is the largest asset manager in the world, managing over $10 trillion in assets. This gives $BLK significant advantages in scale, purchasing power, and global market access.

Diversification is another key strength of BLK. The firm offers a wide range of investment products across different asset classes, providing clients with diversified portfolios that can help mitigate risk.

Technology and innovation are also at the core of BlackRock's success. The firm has invested heavily in sophisticated risk management systems, data analytics, and digital platforms, giving it a competitive edge in the industry.

BlackRock's global presence is another advantage. With operations in over 35 countries, the firm can serve clients across different regions and markets, providing a deeper understanding of local economies and cultures.

Finally, BlackRock's talented workforce is key to its success. The firm's collaboration, innovation, and continuous learning culture helps attract and retain top talent in portfolio management, risk management, and technology.

Overall, BlackRock's size, diversification, technology, global reach, and talented workforce have helped it become one of the most dominant players in the asset management industry.

Still learning......
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Ben
@rpinvestmentsMay 13
Ever read Plunder by Brendan Ballou?
+ 4 comments
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