Money Talks podcast: How to spot a good investment

A practical guide to smarter investing.

Photo by Will Francis on Unsplash

In December 2022, two months into her investing journey, Parker bought her first individual stock.

It was her birthday.

She had just turned 9.

While most kids would have been focused on cake and candles, Parker was digging into charts and displaying conviction.

Her pick? Roblox.

At the time, the stock was hovering in the mid-$20s, not far from its floor. Parker was buying what she understood.

She knew the platform. She spent hours on it. She knew other kids who did too, which only strengthened her belief in Roblox’s staying power.

So she bought one share.

It took nine months later — until September 2023 — for the stock to retrace back to her entry price. She bought a second share.

Fast forward to last July, when Roblox shares surged to an all-time high of $150 per share. On paper, Parker was sitting on a gain north of 400 percent.

Four. Hundred. Percent.

Naturally, I did what any responsible investing parent would do — I suggested she consider taking some profits.

She refused.

Not out of stubbornness. Not out of naivety. But because she had something many grown investors struggle with: a long time horizon and the discipline to match it.

Parker understood, even then, that time in the market, not timing the market, is what swings the odds dramatically in your favor.

At 9 years old, she already grasped that compounding needs patience. She was comfortable sitting back and letting her assets cook.

That moment — watching her hold steady while I nudged her to sell — said everything about how investing should work.

Today, the stock sits well below its peak, closing Wednesday at $68 — a 54 percent drawdown from its all-time high.

Parker hasn’t panicked (she’s still up 135 percent!).

She barely even peeks at her portfolio.

Another sound strategy.

In Episode 22, we unpack what Parker has learned in her first few years of investing and how she thinks about opportunity, risk and conviction. We also put her framework to the test: When should you jump at an investment? When should you slow down and ask harder questions? And how do you tell the difference between a green flag and a red one?

Click the play button below to listen now, or find the Money Talks podcast on Spotify. For your convenience, here is a timestamp of Episode 22:

🎙️ Episode 22 — Timestamps:

0:01: Backstage
1:19: The Money Talks jingle
2:15: Parker shares a few important updates
9:22: What y’all reading?
14:00: How to spot a good investment?
17:35: Parker’s 5 steps to picking a good investment
19:00: 5 important questions to ask before investing
22:35: Mini-game time!: “Green flag or red flag?”
26:00: One final thought about investing
26:25: Outro

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Disclaimer: The information contained on Money Talks is not intended as, and should not be understood or construed as, financial advice. I am not an attorney, accountant or financial advisor. These are my personal experiences, and neither this website, newsletter nor podcast is a substitute for advice from a qualified professional.