I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.

@georgerobinson2021

Жыл бұрын

I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.?

@harrisonjamie794

Жыл бұрын

@@georgerobinson2021 I invest across the top markets but not by myself though. I follow the guidelines of *PRISCILLA DIANE AIVAZIAN* . you might have heard of her. I can correctly say she's worth her salt as an investment advisor as her diversification skills is top-notch, I say this because I see that in her results as my portfolio grows by averages of 20 to 3O% every month, unlike I can say for my IRA which has just been trudging along. my portfolio just mirrors what she places and not just on some particular industries of my choosing. she gave me that financial freedom I needed

@georgerobinson2021

Жыл бұрын

@@harrisonjamie794 That’s great, your investment advisor must be really good, I have seen testimonies of people using the help of investment advisors in making them more financially stable. Do you mind sharing more info on this person?

@harrisonjamie794

Жыл бұрын

@@georgerobinson2021 look her up on the internet with her name. she's quite popular for her services as she was recently featured on CNN. She can work with anyone irrespective of where you're located

@georgerobinson2021

Жыл бұрын

@@harrisonjamie794 I just looked up this person out of curiosity; surprisingly, she seems proficient. I thought this was just some overrated BS, I appreciate this.

Another awesome video! I really like when you break down exactly what is going on in the spreadsheet, it's helped me to actually analyze the company. Thank you!!!

Amazing mate. Love your work. Keep it up!!!

I've learned this lesson in the most expensive way possible with all my money in portfolio loosing 90% of it by keeping a single investment in a stock with declining ROIC trend !!!!

One of the most important videos I have seen mate well done

wow thanks a lot bro. You opened my eyes to some stuff that I was wondering to know and now I understand it! Good explanation!!! With this, I can see how management is effective.

Such a clear explanation Good job!

Thanks for your video Hamish

Great explanation! Thank you!

You’re great at explaining things. Thanks for the video

Very helpful video!! Hamish could you please make more videos like that, explaining in details how to interprete the financial ratios, evulate debt, etc.. like technical videos. Thanks again for your amazing work!!!

I like this method, Its very logical indeed. It would be nice then to compare companies in similar industries to find the best companies. Great video as always Hamish with more useful technical stuff. Thanks again mate.

As a person trying to better my tools and learn valuations you're videos are awesome. I'd love to see different videos on different aspects of dcf valuation.

I can't believe I've never seen this website! This website is amazing!!! Thank you for all that you do!!

Very useful, thank you.

Way to go Hamish……. You’re helping a lot of people !!!

Good extension on ROIC!

Thanks for the video, I would really appreciate if you can make a video of doing the comparison between ROIC vs ROCE. I am a beginner & come across these two ratios & getting difficult to grasp these two concepts.

Hi Hamish thank you for your insight be the why I love how clear you speak FANTASTIC Also I noticed someone asked about looking into CREDIT CORP also APX pls. Thank you

THANK YOU. So many websites describe invested capital as = debt to invest + shares issued to raise cash to invest. But in that case if a business used its own profits to grow the ROIC numerator would grow over time but the denominator would be fixed if no new shares issued or debt taken. ROIC goes to infinity. You are the only one saying it’s SHAREHOLDER EQUITY which will change over time as the company accumulates assets bought with profits. So both the numerator and denominator will progress together and ROIC might remain somewhat stable relationship over time. (Am I getting this mostly right????)))))!!! I am subscribing thanks this is very useful. Seems like this is close to RoE except factors in if company needs lots of debt???

nice video

Hamish you should really do an analysis of Foot Locker. I think the business has great prospects in the future, and i have now analysed it with a variety of calculation methods, all of them very conservative estimates and i think the business represents very good value at the current levels its trading at btw love ur vids keep 'em coming

First of all, thanks for the great content. I found it very interesting especially the final calculations to know about the use of money by management. It would be interesting to have a video with more details about it, about the different ways that they can present themselves for example. Evaluating a particular company, after the accounts in the roic tab, I arrived at the following nnumbers (millions) CF4O: 10487.2 LT DEBT: 9060 EQUITY: 95 CAPITAL: 9155 What would be your feeling's on that? Thanks

Thanks Hamish for the Video, I have a question, if there are treasury stocks on balance sheet which represents stock buy backs, shall we add it to the value of the total equity to calculate accurately the ROIC ?

Hi Hamish, how do you utilise and compare the 10-year sum of CF4O against the 10-year difference in Capital? Is there some link to the two data points?

Hi Hamish, thank you for all the amazing videos. I have learnt a lot from you. I have a question about the end of the video, I could not quite understand the logic of comparing the growth of equity (2019-2011 equity) to the SUM of all cash flows to understand how much of the capital is being deployed to reinvest in the business. I understand the sum shows us the amount of cash flow the business generated but shouldn't we compare it to the sum of equity? Could you explain it a bit more or alternatively direct to me a source that explains it more thoroughly? Thanks a lot for the information and help!

There are some other return metrics such as return on assets, return on equity, return on capital employed , return on tangible assets and return on invested capital. It would be good to understand the difference between all of these, particularly how ROIC differs from ROCE

@phillipkellaway2890

4 жыл бұрын

Hi Raj, you beat me out of the gate on your questions but I am sure Hamish will cover these aspects and differences as he develops his site.

Hey Hamish, Please do a video on whether Berkshire Hathaway is a buy?

Could you explain the diffrence between ROIC vs. ROCE. And wich one is the better one?

Great video Hamish! Well explained and easy to follow. I now understand how to calculate it but I'm wondering if there is any good website where you can find the 1, 5 and 10 year ROIC? I.e. already calculated

@SuperClypeus

Жыл бұрын

Morningstar?

Reckon you could tell us your current positions?

Very good video... wondered if you would be interested to exchange some thoughts about different calculation / analyse methods. Additionaly I have a spread sheet myself, which might be interesting for you. Is there any way to contact you about this ?

Is it possible for the equity to be higher than the CF40??

Just curious Hamish, how come you don't use net tangible equity?

Everyday I hang out with all of medical sales people don't mess with your health thks❤❤🎉🎉

what's the difference of using FCFO rather than NOPAT?

Why not using the free cash flow? Isn't it easier to find and more conservative? If we use consistently we can compare the Roic between companies of the same sector easily

Do you think ROIC is a better metric than ROE or ROA?

(NOPAT x (1-tax rate) / Invested Capital. NOPAT is not owners earnings Invested capital includes ST debt, net working capital as well, not only LT debt

to get ROIC you divide net operating profit after tax (NOPAT) by invested capital, your numbers are a bit higher than they were those years

@NoRegertsHere

8 ай бұрын

How do you calculate the invested capital? And from start of year or end of year?

I'm struggling to understand the denominator as a whole. If shareholder's equity is the amount shareholders would gain if a company liquidated everything and accounted for debts (ie. assets - liabilities), then why are they adding back LT Debt to Equity? Maybe I just don't understand equity very well.... Why is Equity considered what the company is investing back into the business, Hamish? Great content by the way.

@salonsharma5287

Ай бұрын

That’s because, we also have to count debt providers. Both debt owners and equity holders invest capital , and the business uses the capital from both, so for ROIC, we have to assume we are calculating for the whole business and not just shareholders. Debt is also an investment (like bonds).

Hi Hamish! You took Equity while calcuating Invested Capital but aren't the profits being added to Retained Earnings rather than the Equity? And hence shouldn't Retained Earnings also be included while calculating the Invested Capital? Great Video btw. Thanks

@dineshms7667

7 ай бұрын

Retained earnings are a part of equity for your information. Equity consists of two line items usually: 1. Capital raised 2. Retained Earnings

Can you discuss the “event” happening at the moment with the corona virus???

@fiyamage

4 жыл бұрын

KZread would de-monitize the video.

Are there circumstances in which you would tolerate lower ROIC or cash flow for owners? Say for example you were thinking of investing in a market leader in a fledgling industry that is yet to prove itself. Would there be anything that would overpower those less than ideal financials?

@MH-qd8hm

2 жыл бұрын

If the price is cheap relative to cash flow, good cash flow/financials might mean that it is a good business but if price paid is too high then its a bad investment.

Which is better? High roic + slow growth vs lower roic + higher growth

You have two video's explaining ROIC except you're using different formula's for each.. Your older video on the subject calculates ROIC by the formula NOPAT/Invested Capital, Invested Capital defined by Equity + Debt - Non operating assets. This video calculates ROIC by using the formula CF40/Invested Capital, with the definition of Invested Capital changing to Equity + Long Term Debt I can only assume that you have refined how you calculate ROIC as you have mentioned that there are multiple ways to calculate ROIC.

Is ROIC the same as "Investing Cash Flow"

1:33 Start

This seems more like FCF Yield than ROIC.

Great video, but there's a mistake in explaining the ROIC philosophy. It's not only measuring how successful and consistent a company is at reinvesting its profits. Well, not only *profits*. But any money it gets. Even if it issues more shares to raise money. Or take more loans. It will still generate more profits. In other words, it's a profit machine.

@vetiarvind

5 ай бұрын

fixed assets and cash in the denominator

I think you explained the technical side of ROIC but not why it suggests the management is competent with the money it accumulates. For example a low ROIC is caused by the company taking a lot of debt ( making the denominator bigger) but not growing cf4o ( keeping the numerator the same) this lowering the ROIC. Otherwise great content, not shilling shit companies or awful investments right now like Tesla 'cough' FE 'cough' and overall real value

Its Equity, not shareholder equity... this is wrong

You are talking on CROIC.

Quick fs is not completely free they ask for card

@HamishHodder

4 жыл бұрын

They have a paid plan or a free plan. Just use the free plan :)

So you use a slight variant of Cash Return on Invested Capital (CROIC) rather than ROIC.

BRO....YOU TALK TO DAMN MUCH, GET TO THE DAMN POINT

Thanks for your video Hamish

Thanks for your video Hamish