1 / 24

October 22 th 2012

Common Cents Investment Group. October 22 th 2012. Agenda. Today in the Market Picking a Stock Berkshire Hathaway Our personal Investment Strategies. Today in the Market. Today in the Market. Google…having a bad week…

lonato
Télécharger la présentation

October 22 th 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Common Cents Investment Group October 22th 2012

  2. Agenda • Today in the Market • Picking a Stock • Berkshire Hathaway • Our personal Investment Strategies

  3. Today in the Market

  4. Today in the Market • Google…having a bad week… • Did not reach earnings • http://www.firstcoastnews.com/video/default.aspx?bctid=1911685171001&odyssey=mod|newswell|text|FRONTPAGE|featured

  5. Picking a Stock • Find a stock that has potential growth before others find it! • Find an undervaluedstock –Fundamental Analysis • Stock whose price currently reflects a trend reversal – Technical Analysis • Nearly 3,000 companies on NYSE alone • Not counting NASDAQ/AMEX/OTC/Pinks/etc.. • How do we navigate this mess?

  6. Picking a Stock • Pick a market that makes sense to you. • Many play the market on gut • I’m not comfortable buying shares of a nuclear fusion business.  • Focus on sectors that you know and understand! • Cars, technology, clothes, insurance

  7. Picking a Stock • 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 company’s equity more than its market cap? • Basically, you are looking for stocks with real intrinsic value • We will delve into ratio analysis very soon

  8. Picking a Stock • Intrinsic Value: The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors • http://www.investopedia.com/video/play/intrinsic-value/#axzz2A3z0FYcc

  9. Picking a Stock • Avoid Liabilities • By this we mean serious ones… not (necessarily) just accounts payable • 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.

  10. Picking a Stock • 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.

  11. Picking a Stock • Find a stock that is NOT popular • 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.

  12. Picking a Stock • Suggested websites to browse: • We have talked about these before • http://online.wsj.com/mdc/public/page/marketsdata.html • http://finviz.com/ • http://www.valueline.com/

  13. Picking a Stock • 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

  14. Berkshire Hathaway

  15. Warren Buffet • Arguably the most famous Value Investor • Age 82 • Influenced by Benjamin Graham • Looks at the Underlying investment

  16. Berkshire Hathaway • Holding Company: a company or firm that owns other companies' outstanding stock • 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

  17. Major Investments • Wesco Financial (100%) • ComdisCo Holding Co (38.2%) • Washington Post Co (20.46%) • USG (16.6%) • American Express (12.59%) • Moody’s (12.13%) • Coca-Cola (8.6%) • Wells Fargo (6.41%)

  18. Stock Structure • Two Share Classes • A Shares (BRK-A) • $132,609.00 • Full Voting Rights • Convertible to 1500 B Shares • B Shares (BRK-B) • $88.51 • 1/10,000th of Voting Rights of the A Share • Rather than 1/1,500th of the vote • Not Convertible

  19. Performance • 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%

  20. Buffet Quotes • “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.”

  21. Our Strategies

  22. Membership $20 • Cost is only $20 for the whole year! • Benefits: • Member of a very beneficial and informative club that will inevitably be valuable in your future • A network of friends who share a similar interest in investing and personal finance • A virtual portfolio challenge that will strengthen your confidence in investing

  23. Membership • Make sure to check out our website for the presentations Monday night | ccig.osu.edu • Get on our Facebook page and like us! www.facebook.com/ccigosu

  24. Questions? ? • Questions, comments or concerns?

More Related