Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 186- Owner Earnings Fiat Chrysler (FCAU) – Part 2 of 2

This week we’re wrapping up Owner Earnings for Fiat Chrysler. Is this company on sale? We also talk about why you shouldn’t always trust what the analysts think of a company.

In This Episode You’ll Learn

  1. Fiat Chrysler Owner Earnings 2017 – Cash Flow Statement
    • Net profit: €3.5 billion
    • Depreciation & Amortization: €5.9 billion
    • Net Change Accounts Receivable: €-2.6 million
    • Net Change Accounts Payable: €1.1 billion
    • Income Tax: €2.6 billion
    • Maintenance Capital Expenditure: €-8.7 billion
    • Owner Earnings: €5 billion
  2. Why you should be stacking cash right now. Nothing is on sale.
  3. Why Fiat Chrysler MAY be on sale
  4. Why the price of Fiat Chrysler may be lower than it should be
    • Peak of growth for auto companies.
    • Near a recession.
    • Peak of consumer borrowing.
  5. Fiat Chrysler compared to GM.
    • Did a very similar thing to Fiat.
  6. Fiat Chrysler compared to Ford.
  7. How powerful the movements of trend in an industry are.
  8. Why Owner Earnings can lead us to a better answer than a lot of other ways of looking at value – like analyst ratings.
  9. Can analysts put false values and growth rates on companies?
  10. What growth rates to use: Historical Growth Rate OR Analyst Growth Rate – whichever is LOWER. Use common sense.
  11. Why investors like Mohnish and Guy Spier are so rare.
  12. Why it’s important to find companies that are obviously on sale and easy to understand.

Danielle and Phil Recommend

  • Growth Rates: Invested page 222
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.