Welcome! January 24 th , 2011
Welcome! January 24 th, 2011. How do we find these stocks to buy in the first place? Stock of choice Global Summer Program.
Dec 20, 2015
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- Slide 1
- Welcome! January 24 th, 2011
- Slide 2
- How do we find these stocks to buy in the first place? Stock of choice Global Summer Program
- Slide 3
- The one before the rest of society wants to buy that very same stock Find an undervalued stock FA Stock whose price currently reflects a trend reversal TA (more on this one another time) Nearly 3,000 companies on NYSE alone Not counting NASDAQ/AMEX/OTC/Pinks/etc.. How do we navigate this mess?
- Slide 4
- Pick a market that makes sense to you. Many play the market on gut Im not comfortable buying shares of a nuclear fusion business. Focus on sectors that you know and understand! Cars, toothpaste, clothes, insurance
- Slide 5
- For now we focus on fundamentals Financial Ratios Profitability, Leverage, Solvency, Liquidity, Efficiency Comparison to other companies in the same industry Valuation modeling Is the companys equity more than its market cap? Basically, you are looking for stocks with real intrinsic value We will delve into ratio analysis very soon
- Slide 6
- By this we mean serious ones not (necessarily) A/P Stay away from stocks that are in the news because of large and looming lawsuits. Legal problems can drag on for years, so your best bet is to steer clear of companies that have these headaches.
- Slide 7
- At the very least, make sure the majority of analysts are predicting stable or growth in earnings per share. ***Do not trust what a single analyst believes, but rather the majority. Still need to be defensive and take opinions with a grain of salt. The majority can still be wrong i.e. housing bubble/bank fallout Companies need to be profitable to stick around.
- Slide 8
- Duh? You want to pick a stock that is not popular today, yet could be popular tomorrow. Stock that is being ignored by the market presently but has the future potential to pull out and up.
- Slide 9
- http://online.wsj.com/mdc/public/page/ marketsdata.html http://online.wsj.com/mdc/public/page/ marketsdata.html http://finviz.com/ http://finviz.com/ http://www.valueline.com/ http://www.valueline.com/ Browse around!
- Slide 10
- The only surefire way to find a stock is to SEARCH The process WILL take some time! The more practice, the faster you will become You tend to know what you want
- Slide 11
- BRK-A BRK-B
- Slide 12
- Arguably the most famous Value Investor Age 79 Influenced by Benjamin Graham Looks at the Underlying investment
- Slide 13
- Sanborn Map Value of their investment portfolio was $65 a share (Bonds, Etc.) Was selling at $45 A profitable map making business essentially being valued at -$20 a share? Took a board seat and paid a dividend of the investments and then left the map company behind to continue as it always had!
- Slide 14
- Holding Company Business Groups Insurance Geico 1995 General Re Reinsurrance Manufacturing, Retail, Etc. Fruit of the Loom 2002 Benjamin Moore 2000 The Pampered Chef 2002 McLane 2003
- Slide 15
- Wesco Financial (80%) ComdisCo Holding Co(38.2%) Washington Post Co (20.46%) USG (16.6%) American Express (12.59%) Moodys (12.13%) Coca-Cola (8.6%) Wells Fargo (6.41%)
- Slide 16
- Two Share Classes A Shares (BRK-A) $124,400.00 Full Voting Rights Convertible to 1500 B Shares B Shares (BRK-B) $64.46.00 1/10,000 th of Voting Rights of the A Share Rather than 1/1,500 th of the vote Not Convertible
- Slide 17
- Overall Gain 1964-2008 Berkshire: 362,319% S & P 500: 4,276% Compounded Annual Gain 1965-2008 Berkshire: 20.3% S & P 500: 8.9% 2008 Berkshire: -9.6% S & P 500: -37%
- Slide 18
- Warren Buffet is a model investor for many Im not necessarily saying go buy it now but think about it Will be giving full stock analysis in the future
- Slide 19
- Price is what you pay. Value is what you get. Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results. If you're an investor, you're looking on what the asset is going to do, if you're a speculator, you're commonly focusing on what the price of the object is going to do, and that's not our game.
- Slide 20
- Next meeting Elaborate on researching Soon want to open the floor up for you to give a stock presentation We are getting in touch with employers and recruiters to come and speak. GSP Questions?
- Slide 21
- Slide 22
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