4.5 • 928 Ratings
🗓️ 23 March 2022
⏱️ 91 minutes
🧾️ Download transcript
This week Yasser El-Shimy makes his impressive Market Cap Game Show debut against Tim Beyers. We discuss not one but two sleep apnea companies, worldwide sports franchises, and a Swiss company you may never have heard of! How will Yasser do on his first appearance? Tune in to find out!
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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. |
0:06.0 | Maybe this was you or maybe this is a friend of yours. |
0:09.0 | They'll say, well, Amazon, it's at 3,305 per share. That's expensive. By contrast, the same |
0:18.9 | mentality when looking at penny stocks can get a lot more excited. Some penny stock they're seeing promoted by |
0:24.8 | someone, perhaps some near do well, and they'll think, wow, stocks at 33 cents, not |
0:30.5 | $3,300, like Amazon, 33. |
0:34.6 | They'll think, well, that's the one to buy, |
0:37.2 | the one at 33 cents, because if it just reaches a dollar, |
0:41.6 | you triple your money. Well, from the earliest days of the Motley |
0:44.9 | Fool, we've tried to get people focused not on the price per share of the company, but rather |
0:49.5 | on the market cap of the company. The price per share of a stock tells you almost nothing. It's |
0:56.3 | the price to buy one share of the stock. But how many shares does the company have outstanding? |
1:03.0 | In math we multiply two multiple cans together, |
1:06.0 | but the price per share is only one of those multiple cans. |
1:10.0 | If you don't know the other one, you can't do any meaningful math or figure out much of the world around you. |
1:16.0 | Well fools with a capital F know that you need to know the shares outstanding and then |
1:21.6 | multiply that by the price per share and now you know the |
1:26.0 | actual full value of the company its full price tag it's market capitalization |
1:32.4 | market cap. |
1:34.0 | Well to teach this lesson inexorably and unforgettable |
1:38.0 | we invented a game. That's what I do. |
1:41.0 | The date was August 9th, 2017. History will show. We've been playing every quarter since. You're playing too. You know this. You've been playing along all the way through and it's that time of the year again, that time of the |
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