The 7investing Podcast

• Using Options as a Long-Term Investing Strategy with Jeff Fischer

  Options guru Jeff Fischer discusses with 7investing how options can be used as a complement to stocks to boost the returns of a long-term investment portfolio.When used responsibly, options can be a fantastic way to boost the overall returns of an investment portfolio.But options are also shorter-term in nature and they are more highly-exposed to risks and uncertainties. So how, exactly, should investors be using them responsibly? Jeff Fischer has three decades of investing experience. Between writing content for retail investors, co-founding multiple options newsletters, and even managing a hedge fund, he has a wealth of knowledge about investing strategies to generate long term returns.In our recent conversation on March 7, 2025, Jeff discussed how options can be a long-term investor's best friend for boosting returns -- but they also have a few nuances that shouldn't be ignored.Options are best used as a complement to stocks. Jeff describes why he's often writing puts to generate income when he wants to buy a stock at a particular price and writing calls when he's willing to sell a stock for a certain price.We also discussed how investing in options can be slightly different than investing in stocks. Due to their shorter-term nature, options are more exposed to the behavior of the stock market and are more heavily influenced by its current mood of optimism or pessimism. While technical factors do play a role, options strategies should still be built upon fundamental research and valuation.Jeff then described the tradeoff between an option's intrinsic value and its time value. When selling options, you get paid the premium upfront; and you can later buy it back in the future to close out the contract. Jeff typically looks to close out options positions he has written if they've reached 80% or more of the premium's total value -- meaning there's less than 20% of the initial premium left on the contract.We then discussed the difference between retail and institutional investors. Retail investors have the freedom to invest anywhere they would like, but institutions prefer much more predictability and credibility. When retirement funds are at stake, institutional investors are looking for their fund managers to reliably execute on the strategy they were created to accomplish. In the outro, Jeff offered the sectors and stocks that he most enjoys to invest in. During his 30 year career, he's mostly preferred software companies like Alphabet and Meta Platforms. He also mentioned Airbnb as a most recent opportunity investors might want to consider.To have our investing insights delivered to your Inbox every week, please join our free 7investing newsletter today.

  --------  

  31:04
• Is Crocs the Ultimate Value Investment Opportunity?

  Crocs is a very inexpensive stock right now, which could represent an excellent value investment opportunity. Crocs is a global shoe retailer whose comfortable and inexpensive footwear generates $4 billion in annual sales. Its core Crocs brand is growing 17% internationally and 8% direct-to-consumer. Q3 sales got a boost from "Mini-Crocs" being included in McDonald's $MCD Happy Meals and "Batman Crocs" being sold through a recent partnership with DC Comics (both of which are quite adorable). But its recently-acquired HEYDUDE brand has been struggling. HEYDUDE's sales fell 17% this year, as it's not yet resonating with the younger consumer demographic. Crocs is doubling-down on HEYDUDE's brand by hiring Sydney Sweeney to be the long-term ambassador of its marketing. She's encouraging others to be comfortable in their own shoes, and this feels like a good first step to getting sales back on track. As an investment, Crocs looks very inexpensive. The stock is trading at just 7x earnings and 6.5x free cash flow, but it's generating a 70% return on equity and a 25% return on invested capital. There's a pretty clear disconnect there. Crocs' core business is solid and profitable. Yet the market is pricing it as a fad that's in a permanent decline. If the company's new marketing efforts pay off, this inexpensive stock might be worth snapping your jaws on as one of the stock market's most compelling opportunities. See our complete 7investing coverage on Crocs -- including how well it performs based on the legendary value investor Joel Tillinghast's framework -- at: https://7investing.com/company_name/crocs/…

  --------  

  9:01
• Taiwan Semi's Upbeat Forecast Boosts Chip Stocks

  Taiwan Semiconductor $TSM, the world's largest chipmaking foundry, today just issued the largest CapEx forecast of its company's history.Does this mean the chip industry is finally escaping from its cyclical lows, and is ready for a rebound in 2025? TSMC's 4Q 2024 results showcased a 38% year-over-year increase in revenue and a 57% increase in earnings. Those were good numbers. But there might be even better news on the horizon. Management just approved a 2025 capital budget of between $38 billion and $42 billion. 70% of that is dedicated to "advanced technology production" -- i.e. building new fabs to manufacture the cutting-edge chips demanded by AI. This aggressive CapEx forecast is good news for TSMC and also for the entire semiconductor industry. The company will be spending that 2025 budget on equipment vendors such as $ASML, Applied Materials $AMAT, and Axcelis Technologies $ACLS and also on boatload of supporting functions. Meanwhile, creative innovations are also unlocking new opportunities. Taiwan Semi is transitioning the fundamental architecture of its transistors from FinFET to gate-all-around. It's updating the foundation its entire house is built on; changing the physical design of the smallest building blocks of its circuits to support more efficient and powerful processors. The next few years will be an exciting time for this industry. The semiconductor renaissance looks well-primed to begin a new chapter. See all of our @7investing coverage on $TSMC -- including our current Conviction Rating on the stock -- at:https://7investing.com/company_name/taiwan-semiconductor-manufacturing-company/

  --------  

  6:48
• Banking, Crypto, and an Upcoming Regulatory Overhaul with Caitlin Long and John Maxfield

  Innovation and regulation are quite often at odds. Technology relentlessly marches onward; yet it also needs to safely serve the common good. This is ever so true in banking. While banking may have traditionally been considered to be a rather conservative industry, its innovation curve has steepened significantly as physical banks have gone digital, digital banks have employed AI for lending, and managed accounts are embracing cryptocurrencies. Today's 7investing podcast features two banking experts, Caitlin Long and John Maxfield, who share their perspectives on the industry's innovation and offer their insights on: - How crypto-bank Silvergate managed (amazingly) to survive an 80% run on its deposits after the collapse of FTX. - Why overly-restrictive regulations such as excessive capital requirements and limitations on crypto might be soon to change. - What expectations the industry should have of the incoming SEC Chairman Paul Atkins and how he differs from outgoing chair Gary Gensler. - How 'debanking' is unfairly punishing many of the industry's key innovators In the final outro, 7investing CEO Simon Erickson plays a game of "over or under", to hear Caitlin and John's differing insights on a variety of popular companies and topics. This was truly an epic conversation between two banking Wyomingites! Follow @CaitlinLong_ and @MaxfieldonBanks on X/Twitter for even more of their insights. Disclaimer: 7investing's hosts and guests may have positions in the companies or cryptocurrencies discussed on this podcast. Nothing discussed in this program should be considered professional financial advice. To learn more about 7investing, visit our website at 7investing.com.

  --------  

  47:37
• John Maxfield on Banks, Lending, and SoFi

  It's an exciting time to invest in the banking sector. Newly-elected President Donald Trump has promised to relax regulations on banks, which could boost lending volumes. The Federal Reserve has lowered interest rates twice during the past two months, which could make companies more eager to borrow. In response, several publicly-traded financial services companies including Upstart Holdings (Nasdaq: UPST), Affirm Holdings (Nasdaq: AFRM), and SoFi Technologies (Nasdaq: SOFI) have seen their share prices skyrocket and are generating fantastic gains for their investors. But will this momentum continue? What impact will Trump's administration really have on banking? And what, specifically, should those of us investing in banking be watching for? In today's podcast, 7investing CEO Simon Erickson gets the answers to those questions from banking expert John Maxfield. The two discuss why the macro is favorable for banking, yet also a few cautionary things to watch out for at SoFi. Disclaimer: 7investing and its guests may have active positions in the companies mentioned in this podcast. To see all of 7investing's active recommendations, sign up for a 7-day free trial of our service at 7investing.com/subscribe.

  --------  

  40:53

Mais podcasts de Negócios

Podcasts em tendência em Negócios

Sobre The 7investing Podcast