In this week’s episode of InvestED, we talk about Owner Earnings when valuing a business. We take a look at Sears and how looking at Owner Earnings could have saved shareholders a lot of money. Then we take a look at Fiat Chrysler and try to understand the company by using owner earnings.
In This Episode You’ll Learn:
- Owner Earnings a concept that Warren Buffett puts out but doesn’t explain it very well.
- What Chinese Companies are competing with Amazon? Are they cheaper based on Owner Earnings?
- Sears heading for bankruptcy and how owner earnings could have helped investors.
- Sears had negative owner earnings all the way back to 2009.
- You need to be comfortable when making up your own mind when you invest in a company.
- Just because the crowd says you’re wrong, doesn’t mean you are. Just because they say you’re right, doesn’t mean you are.”
- Why the Margin of Safety and Understanding are so important.
- Why Fiat Chrysler (FCAU)?
- Mohnish Pabrai bought into it.
- This is a TOUGH company to understand.
- Companies that are part of Fiat Chrysler: Maserati, Jeep, Dodge, Chrysler, Alfa Romeo, Fiat, Abarth, Mopar.