RAD REVENUE REVIEW: Recent Episodes
RAD REVENUE REVIEW
All things about the stock market and business/finance topics that relate to the stock market! Support this podcast: https://anchor.fm/radrevenuereview/support
While owning real estate is a wonderful thing and can be a great long-term investment, stock ownership can also be great. Here’s a few reasons why I like stocks better than real estate:
- Can have ownership at 1st share:
When you buy a share of a stock, immediately you have ownership of that company. Since most single shares of stock are just a few hundred dollars, it is relatively affordable to buy one one share and when you do buy that share, it is yours to keep. You immediately can enjoy the benefits of being a shareholder. With real estate, under most normal circumstances, it takes a long time to have ownership of the property. With stocks even a small ownership in a company is still ownership.
- Stocks are typically very “liquid”
When you buy a stock normally it is easy to buy shares immediately and it is also usually easy to get rid of your shares if you want to sell. With many blue-chip stocks, there are thousands if not millions of shares that change hands every single day in one company. With real estate, it could take days, weeks or even months sometimes to get out of a real estate transaction or to be able to buy real estate. Also, with real estate, you would have to pay some one else such as an attorney to help buy or sell real estate. Whereas with stocks, other than just a very small commission (and many brokerage account, you wouldn’t pay any fees to buy or sell.
- Property tax burden is not yours (excluding REIT’s and other entities that the tax is passed to the shareholders)
For real estate, property taxes are owed anytime you own property. Even if you owned just land and don’t collect any rent from it you still will go property taxes on the land. Conversely, with common stock of blue-chip companies you will not owe the portion of the property tax, (this does not apply for any real estate investment trust or other establishments in which the shareholder is due the tax portion). For common stock, you will still owe taxes on any capital gains that are distributed or any dividends that are paid to you in a non-tax free brokerage account however you will not owe the property taxes on the stock that you own.
- Stock ownership can have the potential to grow more rapidly than a real estate property does.
While there are areas in major cities such as Los Angeles, New York, Phoenix and Nashville in which there can be rapid growth, the majority areas of the United States have property values that will grow overtime very steady. While the stock market is typically much more volatile than the real estate market— investing in blue-chip stocks can produce more rapid returns over the long term than investing in the general real estate market.
- No physical mess can be done to your asset
With real estate, there are times when a tenant may mess up the property physically. If you have a bad tenant in real estate they may damage or destroy your property entirely. With stocks you never run the risk of that happening, ever. No fixing leaking toilets or patching roofs. There are obviously many benefits with doing real estate over stocks and some of these can far out way owning stocks, however at this point in my life, I’d rather own a few stocks of the worlds best companies than I would to have most of my net worth in real estate. I do want to say that I plan to also keep some residential real estate at some point in the future, so I do think that real estate is a great way to build wealth along with owning blue chip stocks and high grade bonds.
If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me at benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos regarding the stock market and other investing ideas and topics.
Thanks for listening!
Ben
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One of my favorite stocks of all time is Starbucks traded under the ticker symbol SBUX.
Over the last year Starbucks has grown almost 80% in capital appreciation, not including the dividends that were paid as well. Compare that to the S&P 500 which has only gone up about 3% not including dividends being reinvested. Starbucks is an amazing business because it has a lot of cash on the balance sheet (as of the time of this writing, about $4.8B. Their revenue within the last year has increased about 8% however their earnings per share has increased over 54%. Starbucks is now partnering with Uber eats which will officially start in 2020. Although Uber eats is revenue is very small compared to the overall revenue of Uber, their business is rapidly growing. Uber eats is partnering with large chaine such as McDonald’s so Uber eats is having to take a cut in revenue in order to obtain large changes business. Uber makes nearly 4 times as much as Uber Eats
TThe worldwide market for food delivery takeout and drive three meals is estimated at $795 billion – – that means that Uber has only captured about 1% of that market
According to an article from table.skipped.com the overall consumer spending on dining out eclipse $2 trillion in 2017. That means that there is plenty of room for Uber eats to gain significant share of the market place which will in turn help Starbucks have more sales and ultimately have more profit.
If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me at benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos regarding the stock market and other investing ideas and topics.
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Ben
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Highlights from the podcast:
- Warren Buffett, the man that started the Berkshire Hathaway we know today, bought a struggling textile manufacturing company and transformed it into one of the largest companies in the world.
- With a few thousand dollars, Buffett has transformed the company into having currently over $100B in cash alone.
- Company has assets under management over $200B
- Buffett is 3rd richest person in world currently at over $80B
Berkshire is like a large mutual fund. They own numerous stand-alone companies such as: * Pampered Chef * BNSF * Fruit of the Loom * Dairy Queen * In addition, they own 47 stocks: * Largest positions: * Apple (over 1/4 of their entire portfolio is in this company) * Bank of America (12%) * Coca Cola: 9% * Wells Fargo: 9% * American Express: 8%
When you buy Berkshire Hathaway, you’re getting so much value from one company. The company has so much coverage over so many different companies and industries that if one sector of the economy begins to suffer, it shouldn’t pose a threat to the entire company.
Two distinct differences about Berkshire:
- They don’t pay a dividend (they did once back in the 1960’s, I believe)
- They have never split their class A shares (it currently is priced at $296K per share, however it was up to about $330K per share in May of this year
Berkshire Hathaway is a company that I love and I own this stock in my personal portfolio. I plan on never selling this stock as I believe they have so much room to grow in the future.
If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me at benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos regarding the stock market and other investing ideas and topics.
Thanks for listening!
Ben
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Highlights from the podcast:
Bumped! - I found out about the “Bumped” app. This app supposedly will let you link your debit or credit card to the app. How it works is that when you make a purchase at one of their affiliated, publicly traded companies, you will receive a portion of your purchase in the form of a fractional share of stock in that company. For example, if you eat at McDonald’s, when you use your linked card at the restaurant, you will receive fractional shares of McDonald’s stock. - I downloaded the app from iTunes and created an account, however it said that I’m on a waiting list. - As soon as I’m accepted and I begin using the app, I’ll update you via the podcast.
Recession Gonna Happen?
- Here’s why a recession could happen:
- Haven’t had one in 10 years now
- National debt ($22.5 Trillion)
- US Federal Debt to GDP ratio (105%)
- Upcoming election
While not good for the economy, long term investors in the stock market would benefit from a recession. The reason is, stocks would be on sale if a recession happened. You could get some really good deals on stocks if the market started falling. While this would be good for people That are young, it would be hard on people that are retiring and are counting on being able to with draw money from their 401(k).
More than likely we are due for a recession sometime soon however it may not happen for quite some time. My plan for stocks is this:
- Continue to dollar cost average in my current positions
- Save a little bit of money to invest in stocks that are on sale
If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me at benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos regarding the stock market and other investing ideas and topics.
Thanks for listening!
Ben
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Highlights of this podcast:
- I had a Facebook account a long time ago but closed it down due to that my account was hacked. I’ve never opened it back up again.
- Since the above happened, I’ve never had “warm-fuzzies” about using Facebook again.
- It wasn’t until recently that I decided to take a look at the company due to all the hype you hear about with FAANG (Facebook, Apple, Amazon, Netflix and Google) stocks.
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I was shocked at what I found:
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Facebook has 1.5B daily active users on their platform
- They’ve had a 22% increase in revenue since 2nd quarter of 2018 though 2nd quarter of 2019
- They have nearly $50B in cash up from $35B in 2017
- Long term debt $0
So as far as Facebook being a company that I will use, I am not the best candidate for endorsing their services, however I do find their stock to be one that is an excellent company and one that might be worth looking into if you’re looking for a good growth company.
If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me at benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos are the stock market and other investing ideas and topics.
Thanks for listening!
Ben
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A stock is just an opportunity to own a piece of a business. When you buy a stock, you are essentially owning the rights to:
- The company’s earnings
- Any cash dividends paid to you
- Any capital appreciation due to another investor’s willingness to pay you more money for your share of ownership in the business.
That’s the ways that you can make money with owning a stock. I do want to clarify and state that the above is how you make make money by being an owner of a stock. Any other ways of making money with a stock (options for example) are just different ways of either betting or selling the rights of that stock, but these ways are not the same as owning a piece of a business in a sense that someone would own a business like a franchise or a small company.
If you have enjoyed this podcast, please leave me a 5 star rating. Also, please leave me a voice message with any questions or comments. You can also feel free to email me a benstockguyhere@gmail.com. Also, I have a YouTube channel as well. It’s called “Rad Revenue Review”. Please look it up if you’re interested in seeing different videos are the stock market and other investing ideas and topics.
Thanks for listening!
Ben
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3 buy and hold forever stocks
What are buy and hold forever stocks? Stocks that as of today, have businesses in which it can be seen as having an ongoing competitive moat that the investor believes will be just as good as, if not better in the future.
When I use the word “forever”, I know that forever is an almost impossible amount as all companies will change at least a little over time. But assuming the company stays the same as it has as of today, the investor can see themselves holding the stock for the rest of their lives and see it as hopefully still being relevant for the next generation.
With that being said, here’s 3 stocks that I see as being ones in which you could buy and hold forever:
1. Visa. Holds the maket share for credit cards and is the largest credit card company in the US.
⁃ 2018: net operating revenue was at $20.6B (up 12%) and net income of $10.7B (up 26%) ⁃ 2019 cash and cash equivalents of $7.6B
Company is investing heavily in technology and to plan with blockchain (they recently posted a position for a blockchain technology rep)
With all the cash they have, they can easily make acquisitions necessary. They also have plenty of room to increase the dividend order time as they’ve had large % increases lately.
2. Alphabet/Google:
Moat is their search engine per Netmarketshare.com: —80-90% of searches on smartphone — 70-80% of desktop/laptop
— $109B in cash (based of 2018 annual report) Revenue of $137B (was $66B in 2014).
Gmail, YouTube and Google Play
Google Cloud- grew almost 94% in 2018 but its only about 5% of revenue.
(Other bets) Self driving cars: Waymo (this has potential $130B evaluation right now according to some experts!! Drones (X) Artificial intelligence
This company will be around a very long time
3. Colgate Palmolive
Leader in toothpaste and manual toothbrushes. Wikipedia states that Colgate is in over 50% of homes.
Are investing in new areas, such as Hubble, their contact lense business. They also are acquiring more natural businesses like Toms of Maine.
Also, their Pet Nutrition section is a $2.4B revenue maker and grew sales 4% this past year vs only 1% in 2016. According to Grandview research.com, the pet care market is supposed to reach $202.6B by 2025, due to increase in adoption of pets as well as the desire for premium products for their pets. This industry could really help Colgate’s revenue and profits start increasing in the years to come.
Dividend Aristocrat: 56 years of dividend increases.
Sources: netmarketshare.com Grandviewresearch.com 10k of Visa, Alphabet and Colgate-Palmolive. If you like this content, please feel free to check out my YouTube channel. Please look me up by searching for “Rad Revenue Review”. If you’d like to contact me, please email me at benstockguyhere@gmail.com. Thanks so much for listening!! Ben
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Ever wondered the difference on how stocks are valued in the Dow Jones and the S&P 500? On this podcast, I’ll explain how each index is weighed and which one is most relevant to today’s market. Here’s the show notes below:
Examples of the stocks with the Dow and their price, weight in the index and their market caps:
Dow: Boeing is 9.81% - highest weight ($380 share) market cap of $214B
MSFT: largest market cap ( in dow of but share price of $129 but is #15 in the Dow of % of weight (3.31%)
Pfizer is lowest weighed with 1.02%, stock price of $39.76 and market cap of $220B
Berkshire Hathaway will not be in the Dow. Stock price of $320k and market cap of $523B
S&P500- governed by S&P DJ indices, majority owned by S&P global.
MSFT is most weighed (4.061701) BRK is #5 with 1.689427 weight Apple is #2 with 3.769390 weight (but its #4 on the Dow with 5.26% weight)
To me, overall S&P 500 is best index for stocks since it weighs by market cap. Best to utilize both for a round idea of the market but the S&P 500 is probably more accurate of the true market.
If you enjoyed this podcast, please check out my YouTube channel. Please search for “Rad Revenue Review” and find my videos there.
Thanks for listening! Ben
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Risks of investing in IPO’s:
Coca Cola is an example of exceptionally good IPO. Their IPO price of $40 in 1919 would be worth over $15M today (dividends reinvested). Please keep in mind that their stock price lost roughly have its value after about a year after it first went IPO. Most investors at that time would have probably dumped their shares and moved on. Most would probably have not held onto their shares for the long term.
Another example of a successful IPO is Amazon (although they have had a rough ride over the years). Their IPO was in 1997- $1k invested would have bought 50 shares. This would be worth over $1M today.
Failures:
Lyft stock went from $78.28 on 3/29 to $60.25 on 4/23 (23% fall)
⁃ $10k invested would be now be $7,700
Go pro: IPO I’m 2014 at $35 share. Went to $85 share 3 months later. Today price is $6. Loss of 93%.
Uber will be IPO in a few weeks. Reportedly (I got this info from Forbes) it lost $30B in 2018, has slower growth than Lyft and will have a market cap of over $100B.
Risks:
- Companies that have negative bottom line are impossible to evaluate.
- Price fluctuations
- Stock price could already be priced to max
- Hype by the media can cause you to use emotion.
What to do if you want to buy into an IPO if you feel that the company is great and the company has a true moat: use caution and only take portion of money you wouldn’t mind losing if you’re gonna buy into an IPO. One big win though could set you up for life!
Please note that this podcast is for educational and entertainment purposes only and is not intended to be investment advice to buy or sell any stocks. Please do your own research and due diligence before considering purchasing or selling any stocks.
If you like this podcast, please subscribe. If you like to watch videos, please check out my YouTube channel. Just search me by looking up “Rad Revenue Review”.
Thanks so much for listening !
Ben
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In this episode, we’ll look at driverless cars and discuss some companies that may make this a reality for our world. Here’s the notes on what we discussed in this podcast:
IHS markitt believes there will be over 30 million self driving car shipments by 2040 compared to 51k forecast for 2021
Goldman Sachs: ride sharing to be $230B by 2030.
Levels of autonomous driving: 1-5
Leaders: 0. Waymo: 0. GM 0. Ford 0. Apple 0. Nvidia 0. Tesla
Waymo:
Disengagements: 2018: .00009 per mile (once every 11k miles)
Apple: Disengaments:
2018: .87 per mile
GM- Cruz Once every 5200 miles
Uber:
2.86 times every mile driven
Leaders:
Waymo: started in 2009- Have started autonomous driving in Phoenix area last year. CA approved them to start autonomous driving. Waymo One- commercial fleet Alphabet spent over $20B on research and development last year. It’s working with Intel to develop chips for their cars In Jan, Alphabet said it is going to open up a 400k sq ft facility to manufacture level 4 av cars. Analysts think Waymo could be worth up to $175B alone (right now it’s 860B- about 20% of current of the current value) Earnings report comes out in April 29th. We’ll probably hear more updates.
GM Cruise:
Acquired in 2016 for $1B, it is valued at nearly $14B (current market cap of GM is $56B- 26% of the company’s value) CEO Mary Barra tweeted in Jan pic of car with no pedals or steering wheel Honda and SoftBank are investing heavily in GM Advantage of GM- they own their own cars.
Ford: goal is to start selling Level 4 cars by 2021. Ford plans to invest $4B by 2023 They are developing an app and cloud connection for their cars according to their CEO Ford is officially partnering with Wal-Mart and postmates for food delivery.
Which one will be the first to make it big with driverless cars? You decide!
If you enjoy this podcast, feel free to also check check out my YouTube page. Just type in “Rad Revenue Review” and watch my videos.
Thanks! Ben
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10k’s and Annual Reports- why they’re vital! Please leave me a comment (if you’re on the Anchor app) if you enjoy or if you have any questions or suggestions. Also, if you enjoy this content, please feel free to check out my new YouTube page. Just type in “Rad Revenue Review” and find me there. Have a great day!! Ben
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McDonald’s stock has been one of the best performing stocks over the last several decades, but is it still a good company in 2019? Find out as we look at the fundamentals of the company. Sources of material are from : transcripts of investors conference calls Q3 in October 2018 and Q4 conference call in January 2019, 10k report from 2018 data as well as data from Microtrends.net
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Acorns app has traditionally been promoted to beginning investors as a way to put spare change in the market, however it may not be the best way to invest. On this podcast. I’ll go over some of the reasons as to why I think there are better accounts to invest in and better ways to plan on putting money into the market.
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JC Penny stock is a penny (no pun intended actually) now and Berkshire Hathaway is over 6 digits today. Which one though, is actually the best one for your money? Find out on this podcast!
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Episode 5: P/E Ratio: how it can be used to evaluate a stock and company
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Coca Cola— is the company “guzzling” in profits or has the company started to “fizzle” out? We’ll talk about the earnings, and revenue of the company, as well as where Coke has come from and where it’s going. I’ll also give my opinion on whether or not I’m going to be buying the stock.
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Listen to know 5 ways in which dividends can benefit you!
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Most people know that Sears is now bankrupt and basically done as a company, but did you know that during the years, Sears has produced some excellent companies that now stand on their own? Find out what happened on this podcast!
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On this episode, I’ll give you 3 reasons as to why I like investing in the stock market.
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