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Foundations of Stock Investing

Read a financial statement, judge business quality, and set a price you are willing to pay. The prerequisite for everything else here.

24 lessons8h 10m5 modules

What the course covers

Module 1What you are actually buying4 lessons · 1h 0m

A share is a claim on a business, not a ticker that moves. This module sets up everything after it.

  • 1Ownership, not tradingFree preview14m
  • 2Where returns actually come fromFree preview18m
  • 3Why price and value separate16m
  • 4The only three things you control12m
Module 2Reading the three statements5 lessons · 1h 59m

Income statement, balance sheet, cash flow — what each one hides and what it reveals.

  • 1Income statement, line by line26m
  • 2Balance sheet: what the company owes24m
  • 3Cash flow: the statement most people skip28m
  • 4How the three connect19m
  • 5Five red flags across the statements22m
Module 3Judging business quality5 lessons · 1h 46m

Separating a good business from a business that happened to have a good year.

  • 1Margins and what moves them21m
  • 2Return on invested capital24m
  • 3Competitive advantage, concretely20m
  • 4Capital allocation: where the cash goes23m
  • 5Debt: how much is too much18m
Module 4Setting a price you will pay5 lessons · 1h 57m

From judgement about a business to a number you can act on.

  • 1Multiples and their limits22m
  • 2Projecting forward without fooling yourself25m
  • 3Discounting to today20m
  • 4Margin of safety in practice18m
  • 5Building your first full valuation32m
Module 5Owning it5 lessons · 1h 28m

The part that decides returns, and the part almost nobody teaches.

  • 1Writing the thesis down16m
  • 2Position sizing without a formula19m
  • 3What to do in a drawdown21m
  • 4The three reasons to sell17m
  • 5Reviewing your own decisions15m

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Foundations of Stock Investing · Everything Money