Free Training Friday 5: Bed Bath And Beyond (BBBY) Analysis For Tomaz P

Out of everything I do, I love helping others learn and improve their skills and knowledge the most.

Selfishly, I’ve always loved helping people more than helping myself because it makes me feel good.

But talking with students and clients, and being with them when they finally “get it”, and when concepts, terminology and techniques begin clicking into place, is absolutely amazing to be a part of.

Get FREE access to 17 of our best training videos from the past by clicking here.

In this brand new series, we’re bringing those two things together and much more.

In this series, I’m going to release a new training video / session every Friday on the blog to help you improve your value investing skills and knowledge so you can reach your goals faster.

We’re also going to turn these sessions live at some point as well.

Once we get going here, we’re also going to do live training and Q&A sessions in this series.

The video analysis of Bed Bath and Beyond (BBBY) below was requested by Value Investing Journey subscriber Tomaz P.

In the video, I do a full preliminary analysis of the company he chose and tell you why it looks like a value trap.

NOTE ***

I made a mistake in the analysis that was pointed out by a YouTube viewer.

Instead of using the TTM numbers, I used the last 4 years’ EBIT and FCF when calculating its EV/EBIT and EV/FCF.

This is why the relative valuations were so low.

Want to learn how to find, evaluate, value, and buy great stocks fast? Ones that have helped me produce average annual investment returns of 23.5% per year on average in the first 9 years of my career? Click here to learn more about our Value Investing Masterclass.

However, this mistake made no difference in the overall analysis. Now that the valuations are worse on a relative basis, they make more sense than what I talked about in the video, but BBBY is still a value trap as it’s still likely to go out of business within 5 to 10 years.

***

A couple weeks ago, we began a mini-series within this larger series on foundational value investing knowledge, we’ll get back to that info next week.

To view the rest of this case study series, which as of this writing is now at 18 videos, go here.

But why do we spend so much time talking about these things?

Because I’m a huge believer that once you have the proper value investing foundation down, or any skills basic foundations, it will make things much easier to learn down the road for you.

Plus once you have these foundational concepts down, you won’t have to go back and keep relearning these things over and over again.

I did this when I first started and wasted literally years of time.

Don’t do this.

In this series, we talk about the following things

Why these kinds of concepts are so important
Why doing a thorough preliminary analysis can save you a ton of time and help you find great companies faster
How it can save you an IMMENSE amount of time down the road
Why making sure decimal places are in the correct place is ultra important
Why converting currency is ultra important
What is and is not important during a preliminary analysis
Why these numbers and metrics on my preliminary analysis checklist are there – it’s for specific reasons
What the numbers mean and can potentially mean for a company and its balance sheet strength, valuation, profitability, etc.
And much more…

I’m a huge believer in being as efficient as possible to help speed up not only the learning process for you, but also, personally, so I spend less time having to backtrack and relearn things.

By drilling in the above info and the other info in the other free videos in this series, you’ll save yourself an enormous amount of time and frustration.

I’m all about leveraging time and gaining a huge legal advantage over others, this is a huge positive leverage point.

Let’s get to it…

If you missed the prior videos in this series you can view them here:

Until we get the live training / Q&A sessions up and running, let me know if you have any questions or comments or specific scenarios you want to know about when it comes to a thorough preliminary analysis or foundational value investing knowledge so I can make another video on them or even make you a video personally. Or even do a FREE live training session just with you.

P.S. You can get a free copy of my acclaimed value investing education book How To Value Invest, here.

P.P.S. The videos in this series – and 155 more training videos as of this writing – are all in our Value Investing Journey Training Vault, that you can now get for a limited time for only $49 a month for the first 100 people that sign up. Click the link above to get this program before this offer is gone.