About this video

• Video Title: I bought a NEW stock today‼️
• Channel: Financial Education
• Speakers: [Speaker not explicitly named, but referred to as "Jeremy"]
• Duration: 00:36:00

Overview

This video discusses the stock market, focusing on why many retail investors are losing money despite market uptrends. The speaker emphasizes the importance of research, fundamentals, and avoiding "gambling" behavior. The video also features a detailed analysis of Salesforce (CRM) as a new stock purchase, including bull, bear, and base case scenarios, and discusses recent performance of Amazon and Elf Beauty.

Key takeaways

• Importance of Research and Fundamentals: The speaker stresses that successful investing requires thorough research and understanding of a company's financials, rather than relying on hype or social media tips.
• Avoiding "Gambling" Behavior: Many investors are losing money because they are gambling on stocks without doing their due diligence. This leads to significant losses when individual stocks underperform the broader market.
• Salesforce (CRM) Analysis: The speaker identifies Salesforce as a new stock purchase, detailing its strong balance sheet, income statement, and future growth potential, particularly with its AI products and acquisitions. Bull, bear, and base case scenarios are presented with price targets.
• Market Performance vs. Individual Stocks: The video highlights how the overall market (e.g., QQQ, S&P 500) can be performing well, while specific stocks, especially those driven by hype, can experience significant declines.
• Long-Term Wealth Building: The stock market is presented as a powerful wealth-building tool, but only for those who approach it with a disciplined, research-backed strategy, not through speculation.

The speaker suggests investors look at the following financial metrics:

• Income statements
• Balance sheets
• Cash flows
• Trailing 12-month (TTM) Price-to-Earnings (P/E) ratios
• Forward P/E ratios
• Price-to-Sales (P/S) ratios
• Net income
• Gross profit
• Operating income
• Diluted Earnings Per Share (EPS)
• Cash and cash equivalents
• Marketable securities
• Non-current debt
• Total assets
• Total liabilities
• Revenue growth
• Gross margins
• Free cash flow
• Earnings per share (EPS) growth

Here are the speaker's price targets and compound annual growth rate (CAGR) expectations for Salesforce (CRM) across the different cases:

Bull Case:

• Price Target: Over $500 on the low end, around $600 on the high end.
• CAGR: 20% (low end) to 25% (high end).

Base Case:

• Price Target: Not explicitly stated as a dollar amount, but implied by the CAGR.
• CAGR: 16% (low end) to 21% (high end).

Bear Case:

• Price Target: Not explicitly stated as a dollar amount, but implied by the CAGR.
• CAGR: 4% (low end) to 10% (high end).