Stock Stories

How can we talk about the beverage giants without first talking about Pepsi?  Pepsi is not just about the iconic soda brand.  They also sell Gatorade, Fritos, Cheetos, Tropicana, Quaker Oats, and a host of other products.  Contrary to Coca-Cola, their strategy has been to diversify in both food and beverages.Here is the book about the chip industry referenced in the podcast.Crunch!: A History of the Great American Potato Chip---Instagram and Twitter: stockstories1Email: alex@stockstoriespodcast.comNote: Some links are affiliate links, which means I may earn a small commission if you purchase anything using it.

Hanlon's Razor, similar to Occam's Razor, is a philosophical tool we can use to "cut down" a situation with potentially many logical explanations to just one that has a high probability of occurring.  By not automatically assuming mal-intent when negative outcomes occur, we can often uncover the true source of the problem, which is often due to negligence.---Instagram and Twitter: stockstories1Email: alex@stockstoriespodcast.com

This is one of the most successful firms on the planet.  3% of all liquid consumed on Earth (including tap water) is sold by The Coca-Cola Company.  Today's episode is somewhat longer than usual - simply because, with a history and business model like this, there are a lot of great things to study.  We get into how Coca-Cola came to be, and how the company has innovated throughout the decades to remain successful.  We also discuss the challenges that the company faces going forward and its attractiveness as an investment.Here is a link to a great video profile that National Geographic did on how Coca-Cola's products are made and packaged.---Instagram and Twitter: stockstories1Email: alex@stockstoriespodcast.com

One of the largest retailers in the United States, Target has become known for it's "upscale discount" atmosphere, experience and products.  Throughout the latter half of the 20th century, Target experienced incredible growth as it expanded across the country.  However, it is currently facing pressure to grow in the midst of strong competition (like Amazon), and has not grown sales or profits in several years.----Follow Stock Stories for updates on Twitter or Instagram: @StockStories1Email: alex@stockstoriespodcast.com

Waste Management is the largest solid waste collector and processor in the country.  They collect and process trash and recyclables.  In this episode, other than the regular financials and history, we talk about the importance of financial transparency and straight talk from management.----Follow me for updates on Twitter or Instagram: @StockStories1Email: alex@stockstoriespodcast.com

Republic Services provides trash and recycling collection and transfer services.  They own landfills and recycling centers.  The waste management industry is vital to how we operate in modern society, but often goes unnoticed.  We all consume things, and there are by-products to what we consume that need to be processed and recycled.  Republic Services is one of the largest companies that does just that - and they do more than pick up your trash in the morning.

Things should be made as simple as possible, but no simpler.  This mindset can help clarify our decision making and our interpretation of data.  Occam's Razor is a philosophical tool used in many fields to make our thinking processes more efficient and effective.---Instagram, Twitter: @stockstories1Regarding the reference about investor's expectations influencing a stock's price, check out Phil Fisher's: Common Stocks and Uncommon Profits and Other Writings.*Note, this is an affiliate link.  If you purchase the book Stock Stories  may earn a small commission. 

Colgate-Palmolive - it's what you think about when you think about toothpaste.  In fact, its products are bought by over half of the world's households.  They've been around for almost a quarter of a millennium.  Though not fast growing, it is probably the most stable profit engine that I have studied.  With a dwindling share count, increasing dividends, and a strong international presence, CP is one of the few companies that I have researched that I can say I believe will be around in fifty years.----Follow me for updates on Twitter or Instagram: @StockStories1Email: alex@stockstoriespodcast.com

Ross is the largest "off-price" department store in the United States.  They sell mostly women's clothing, but also clothes for men, shoes, home accents, etc.  Although they have been around in some form since 1950, their rapid phase of growth did not start until the late 80s.  Ross is a higher growth large business that has sales and profits that continue to increase in recessions.  What returns can we expect if we pay up for growth?----Follow me for updates on Twitter or Instagram: @StockStories1Email: alex@stockstoriespodcast.com 

Ford is one of the largest automakers in the world and is famous for its brands such as the Ford F-Series, Mustang, and many others.  It is the largest family owned business in the world and makes cars, trucks, and other vehicles.  Below are some notes from my analysis:Current share price in October 2018: around $9.20 per shareTotal shares outstanding as of 2Q 2018: 3,998,000,000 sharesSo total market cap right now is about $38 billionExpected earnings in 2018 to be $1.30-$1.50 per share, which is a P/E of 6-7xCash net of debt (including marketable securities of Ford Motor Corp. but not of the credit business) is $9 billion.This equates to $2.25/share in cash, which is a decent amount.  Really though it is a negative cash position of -$115 billion when accounting for all short and long term debt on the balance sheet.  This is -$28.00/share in debt.The amount of net cash the company had in 1987, when Peter Lynch wrote about it, was $8.3 billion.  So the cash position has gone up and down over time, but is sign

In many things in life, reversion to the mean is inevitable.  Sometimes it takes a lot of data for this to become clear.  But in investing and in life, it is important to be careful with our assumptions and make sure that we don't confuse correlation with causation.  Understanding regression to the mean will help us do this effectively.

Mental models = thought experiments.  We discuss what exactly a thought experiment is and cover a few examples to see how it can improve our thinking about the world around us.

It's the world's largest telecommunications company.  From it's humble origins with Alexander Graham Bell, the inventor of the telephone, AT&T has proved its dominance even as technology has shifted from wired to wireless networks.  In this episode we explore:The origins of AT&TThe 'Baby Bell' Break-UpRe-organization into one companyCurrent FinancialsFuture outlook and why I think AT&T is one of the best large capitalization income stocks right now

Molson Coors is the fifth largest brewer by market cap in the world.  They own popular brands like Miller, Coors, Molson Canadian, Blue Moon, and more.

Brown Forman is the largest American maker of spirits.  Their flagship brand, Jack Daniels, is the 15th best selling spirit in the world.  They also sell scotch, vodka, tequila, liqueur, and other whiskies.

First Principles are the core ideas or facts that exist in the world that are irrefutable.  We can build on them in order to come up with more complex ideas.

Many things are random, but many things are not.  When it comes to investing in stocks, it pays to know the difference.  What are the cause and effects relationship in the market and what must be accept as truly random events?

Charles Schwab is one of the largest asset managers and broker-dealers in the U.S.  I used to think that all they did was execute trades, but their business model is actually a lot more involved than that.  They're also a bank and an investment manager.

Today we look at another one of the U.S.'s largest asset managers, which has always operated from a philosophy of growth investing.

Franklin Resources is one of the largest asset managers in the country and boasts a very clean balance sheet and a strong record of delivering returns to shareholders.  Will the future be as great as the past for new investors?Click here for bonus episodes and the entire (180+) episode archive.