How Do You Value a Stock?

Stig Brodersen, host of The Investors Podcast, joins Doug on this episode to discuss exactly what gives a stock its value. Many times people are shocked are by an expert’s valuation of a home, a car, or other personal item. The reason behind the surprise of a professional evaluation is because folks’ emotional attachment to items tend to inflate their value. Follow Stig and Doug’s discussion to learn why stocks value reflect investor expectations. Stig offers guidance about how to take the emotional component out of stock and investment selection. He also explains why a stock’s value increases/decreases and why people are willing to pay more when a money manager is involved.

Doug discusses early retirement. Even if you want to retire early, should you? And if so, what do you need to do to make sure you have enough money? He answers the last question with two suggestions to change your investing habits in order to maximize chances of financial success. You can follow Stig Brodersen at The Investors Podcast and on twitter at @stig_brodersen If you’re not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug’s free ebook The Retirement Planning Book.