Jul 28, 2020
Many people, even some of those in the management team are finding it difficult to understand Finance. As such, generating more profit from their business is one challenge they face.
It is necessary that you cut through the complexities of understanding financial principles to drive business growth.
Andrew Stotz, Ph.D. is an author, financial analyst, and teacher.
He is the CEO of A. Stotz Investment Research. He was at one time voted no. 1 financial analyst in Thailand. He now provides research and research tools for institutions and high-net-worth investors, as well as helping other CEOs make their companies financially world-class.
He created the ValuationMasterClass.com, the world’s #1 online practical valuation course. And he hosts My Worst Investment Ever podcast, the #1 risk-management podcast that helps future generations reduce their investment risks by learning through the stories of others. Andrew lives in Bangkok with his 82-year-old mother, who will attest that he remains an analyst at heart.
In this episode, Andrew talks about how finance is perceived as confusing and overwhelming to many people. Andrew shares how he helps people break through that complexity, simplify it down to its core element.
What you will learn from this episode:
“I think that it has to be about how do we really simplify these things so that people can start talking in the same language. And what I really work on is empowering people.”
- Andrew Stotz
02:20 - Andrew defines his ideal client
02:41 - How do Andrew make Finance not as confusing, overwhelming, and difficult as many people find it to be
03:23 - What symptoms do this financial problem bring to management
04:14 - What one thing management does wrong before they consult him about their problem
05:43 - Andrew shares valuable free action about stocks that gives you equity exposure without the risk of picking any one individual stock, country, region, or sector
06:41: Valuable free resource: Go to www.academy.astotz.com and get your FREE course called '40 Investment Words You Need To Know'
07:29 - The book that has been impactful in his life: Your Money and Your Brain: How the New Science of Neuroeconomics Can Help Make You Rich by Jason Zweig
08:59 - What's the number one thing that a business should be focused on to increase the value of their business?
Key Takeaways:
“Finance is confusing, overwhelming, many people just find it difficult. What I do is help people breakthrough that complexity, simplify it down to its core elements.” - Andrew Stotz
“Whether it's the HR manager, the Sales Manager, the Marketing manager, many of them find Finance difficult. It ends up being the CEO and the CFO that understand it, and sometimes not even the CEO that well. What I do and I have a program called the Value Accelerator Program where I train the whole management team in a simple way, Finance made ridiculously simple.” - Andrew Stotz
“I think my biggest experience in terms of people’s mistakes is that they allow the world to overcomplicate it. If they're in the business, they allow the CFO to speak in another language, basically. If it's in the investment world where people are investing, I try to help them cut through all the complexity that financial institutions actually create.” - Andrew Stotz
“This book,'Your Money and Your Brain' looks at functional MRIs and all of the latest studies at the time. That shows us that really when a stock goes up three times in a row, it's like taking a hit of cocaine. And when a stock goes down significantly, it's like being chased by a man with a gun coming after you.” - Andrew Stotz
“Should I have a high-profit margin? Or should I have high-profit growth? And the answer is profit growth.” - Andrew Stotz
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