Market Cap Game Show: Tie Makers, Tie Breakers

Rule Breaker Investing

The Motley Fool

Business, Investing, Invest, Rulebreaker, Stocks, Company, Growth, Stockmarket, Fool, Foolish

4.5 • 928 Ratings

🗓️ 21 September 2022

⏱️ 73 minutes

🔗️ Recording | iTunes | RSS

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Summary

Last time we played the game, returning champions Yasser El-Shimy and Brian Stoffel had to be content with a tie at 5 points apiece. Of course we couldn't let that stand, so they're back to battle once more, and this time we have the listener-submitted "Stevens Sudden Death Rule" to prevent another draw. Will we need to invoke the new rule?

Stocks Mentioned: SNBR, MRK, CELH, MAA, MDB, AMZN, MELI, AXON, TTD, CFLT, COHR, SQ, ZG, CPRT, ETSY, NET

Host: David Gardner
Guests: Yasser El-Shimy, Brian Stoffel
Producer: Rick Engdahl

Transcript

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0:00.0	A lot of people when they first think about stocks tend to lock in on the share price.
0:05.4	Maybe this was you or maybe this is a friend of yours.
0:08.8	They'll say, well, Alphabet is at $102 per share. That's expensive. By contrast the same mentality when looking
0:17.7	at penny stocks can get a lot more excited. Some penny stock they're seeing promoted by someone perhaps some
0:24.8	ne'er do well and they'll think wow the stock is it a dollar and two cents not
0:29.9	one hundred two like alphabet one dollar two 1002, like Alphabet, $1.2.
0:35.0	They'll think that's the one to buy, the one at $1.2 because, hey,
0:39.0	it just reaches $2, you double your money.
0:41.7	Well, from the earliest days of the Motley Fool we've tried
0:44.0	to get people focused not on the price per share of the company but rather on the
0:48.2	market cap of the company. The price does the company have outstanding? You know in math we multiply two multiple cans
1:04.7	together but the price per share is only one multiple canned. If you don't know the
1:10.2	other one you can't do any meaningful math or figure out much of the world
1:14.2	around you. F. Know that you need to know the shares outstanding and
1:19.1	then multiply that by the price per share and now you know the actual full value of the company its full price tag
1:27.8	its market capitalization
1:30.5	market cap well to teach this lesson inexorably and unforgettable
1:35.4	we invented a game. That's what I do. The date was August 9th, 2017. We've been
1:41.5	playing every quarter since you're playing two. You know this. Now into the
1:46.9	sixth year you've been playing along all the way through I hope and it's that time of
1:52.3	the year again. That time of the year again that time of the quarter again
1:55.0	ten new stocks two guest stars both returning champions actually three
	...

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