January Goal Analysis

I decided in Mid-January after reading part of Grant Cardone’s “The 10X Rule” that I needed to push myself and set some short-term goals to get my finances, blog, social influence, brand etc. all on track. I wrote these goals down on my phone and posted them on my business Instagram as you can see here.IMG_0313.png

Also if you haven’t been following me yet its @bsquared.website and I try to make my posts value oriented and show everyone what I am doing to improve my blog, business, investments etc. Anyways the timeline for that first set of goals was under 2 weeks and as you can see below I didn’t reach most of them.

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I came so close to the blog visitor goal, I was at 97 for January and as I was finishing up homework around 12:30am I had another visitor technically on February 1st, that’s why the +1 is there. Nonetheless that was a huge achievement for me, I started the blog in late November and had only 7 visitors for the whole month of December. As far as clicks go I haven’t been doing well on blog to amazon, I always hear its just a law of numbers. I guess I just need to get my numbers up and the clicks will come in. Falling short on blog posts came down to time and amount of content I had, but mainly time. I also planned on a friend writing 2 articles for me but that hasn’t happened yet. Side money made it easily with all the recent stock sales and profits I’ve collected from that. Again, with the clicks I think the affiliate sale follow a rule of numbers and I just need to keep pushing until I get to that threshold. The 10X rule and posting about it also came down to time, I’ve been extremely busy with school, fraternity business and working on all my personal goals and picking up my kindle and reading just wasn’t on the priority list. Coming short on forward dividend was mostly on me. I sold and bought a bunch of stock over this duration of time and didn’t allocate for the best dividend stocks but rather went with shorter plays for profits soon. Hitting my 25 IG posts was easy, I could always come up with content for that and just got in a habit of posting in the morning and late at night helping me rack of my following, reach, impressions etc. Instagram followers are a little bit more difficult to come by, I noticed I have lost a decent number of followers as well, so I am not sure what that is all about, but we are going to try to get those numbers up this month. Speaking of which here are my goals for the next 2 weeks.

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They are as ambitious as the last ones I would say, but attainable I believe. I think these goals will come down to how I utilize my weekends. This tends to be the only free time I have, and I normally allocate that to social activities. I can say for certain that affected the end of January goals in a negative way. Tell me what you think!

B^2

Modern Long Term Stock Market Investing Secrets-summary and review

I’ve been watching the Financial Education YouTube channel for a while now and I really like the content and the enthusiasm Jeremy brings to his audience. Those who pursue success and greatness can relate to him well. He is a very successful investor and admits his mistakes and his errors when they come up proving his honesty to his viewers.

Now onto the book, Modern Long Term Stock Market Investing Secrets!, Jeremy reveals how he went from $0 to $200,000 by age 25 using this stock market investing method. He first goes into how he started considering the stock market. Looking at CD’s, savings accounts, bonds etc. yielded very low returns and real estate investing was out of the question for him at 19 years old making $7.50 an hour at his job. This led him to the stock market and he started reading and learning about Warren Buffett. Jeremy credits most of his success in stock market investing to Warren Buffett and an accounting teacher he had in his schooling.

He then goes into how to buy a stock through a brokerage, and then thinking of the underlying company you are buying rather than the stock ticker. This is right out of Warren Buffett’s playbook by looking at the company fundamentals and longevity rather than the short-term outlook. However, as Jeremy further goes into his method we see the key difference between his method and the buy and hold method Mr. Buffett uses. That is the time frame, in modern long term investing Jeremy works within a 1-5 year span. This is due to the rapid change in technology and growth that we experience nowadays. With the evolution of technology at such a rapid pace, business fundamentals, and company outlooks can change just as fast.

Jeremy then goes into what he looks at to determine if the company fits his investment criteria. The first would be looking at the management team and he uses the hockey reference, a management team that skates to where the puck will be rather than skating where the puck is. This ensures that the company will be making sound decisions years down the line. The next criteria is the balance sheet. He primarily looks at financial security or the ability for the company to make it through a tough time and the company’s ability to grow or acquire other businesses. This involves looking at the debt and on hand cash a company has. Jeremy typically looks at companies with very low debt, lots of cash on hand, and a strong brand name in its industry. The balance sheet is one of the most critical portions to his method and he references that in the end of the balance sheet chapter (chapter 6).

The income statement is the next metric he looks at. Jeremy looks at net income and revenue growth primarily and likes to see them grow by at least 10% a year, and prefers net income to outgrow revenue showing increasing profitability. Along the same lines, Jeremy loves “to look at companies that have an expanding gross margin and a high profit business model!” Obviously making profits reflects in the net income line and high margins allows a company to cut them in tough times without a large effect. Both are key aspects in his modern long-term investing method.

Next item on the agenda is PE ratios, EPS, and quarterly results. Now in the grand scheme of things when investing between 1-5 years a bad quarter is a drop in the bucket when you’re talking about an investment expecting to make it through 10+ quarters. He goes in depth as to what range of PE ratios he looks at and pending those numbers what he looks at in his other criteria. He recognizes that constant struggle between growth and value which is shown in the PE ratio. Warren Buffett is primarily a value investor which is where Jeremy has gained most of his investment background. However, the days of buying and holding are over and greater gains can be achieved for the most part by growth companies over the short term. Growth companies are rarely undervalued though, leading to a challenging terrain of finding a growth company for an excellent value.

He goes into dividends, share buyback, acquisitions and mergers next. He notes the usefulness of dividends however he thinks they are the biggest waste of money since cash is coming out with no return on investment. Jeremy ranks the following from best to worse use of capital: Expanding the business, share buyback, dividends, and acquisitions/mergers being the worse use of capital. He wraps up the book with a chapter talking about thinking outside the box and acquiring all information on a business is critical and could lead to good insight. Followed by a recap chapter, then a FAQ chapter, and finally a definitions chapter.

This article was a brief summary of the book. The information in this book in addition to the Financial Education channel has helped my investments and personal finance immensely. I would recommend this book to any beginning/novice investor as it has lots of fundamental value to add to your personal investing. Below is a link to the book on amazon.

http://amzn.to/2E2fgor

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