Providence Investment Class

We will be digging into the world of personal finance (how to manage your own money) for the next few weeks, and in this episode we will discuss WHY! 

We discuss one very useful equation that we will use a lot going forward, both in our personal finance discussions and in our investment analysis discussions: the net worth equation (and the accounting equation...and the basic financial equation...which are all the same equation).  

Money moves in two directions: toward you or away from you.  You spend or you earn.  You buy or you sell.  You invest or you borrow.  So...spending, buying, and investing are all related.  So are earning, selling, and borrowing.  

Price can tell us a number of things IN THE CONTEXT of other information, but it doesn't tell us much by itself.  

Price and value are related, but they aren't the same thing, and they often don't match.  Let's talk about it. 

As a tie-in to episode 009 (Price), in this episode we discuss value: how it differs from price, how it's determined (spoiler: it's different for each person), and I make the case that you probably don't want most of the goods and services that are available, even if they were free! 

This talk covers price, how they are set (answer: supply & demand), why they might differ for similar products, and we talk through a market example of price setting.  

Even the best things aren't perfect.  If you're going to be an investor in the stock market, you have to learn to deal with its downsides (literally).  

There's a lot to love about the markets.  Let's talk about it. 

We use an analogy of buying the GOAT's world cup jersey to illustrate shared ownership and selling shares to the public.  For you soccer fans (and everyone else, too)! 

Today we talk about the stock market!  We discuss what the stock market is, what "stock" is, and how and why a company goes public.   

We discuss markets, what they are, why they exist, how they work, goods versus services, and some examples. 

There are only two fundamental ways to invest your money, and we talk about those in this episode! 

We answer a very important question to start off our investment class: what is investing?   Don't expect all of these to be so short ;) 

Welcome to Investment Class!  Here is an overview of what is to come and what to expect!