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With Investor Phil Town

InvestED: Ep 185- Owner Earnings Fiat Chrysler (FCAU) – Part 1 of 2

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:

  1. Owner Earnings a concept that Warren Buffett puts out but doesn’t explain it very well.
  2. What Chinese Companies are competing with Amazon? Are they cheaper based on Owner Earnings?
  3. Sears heading for bankruptcy and how owner earnings could have helped investors.
    • Sears had negative owner earnings all the way back to 2009.
  4. 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.
  5. 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.

Danielle and Phil Recommend:

On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.