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how do you decide which stocks to buy unless you understand financial accounting
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Date: October 5th, 2016 9:17 PM Author: Soul-stirring ticket booth how does a layman even interpret SEC filings and other reports in a competent way without at least a passing background in understanding how financial accounting works? it's just purely speculation otherwise you'd have better odds going to vegas |
Date: April 19th, 2018 7:46 PM Author: gay stag film friendly grandma I believe they used to rely on tips from the stock analysts. You know, the brokerage firm guys who would rate stocks "buy," "hold," "sell." (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877381) |
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Date: April 19th, 2018 7:51 PM Author: Aromatic Lodge i know lots and lots of finance and accounting. i can do a dcf in a half hour
i’m still fucking awful at stock picking. you really think an edge for knowing accounting wouldn’t be arbitraged away faster than the speed of light lol? |
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Date: April 19th, 2018 7:54 PM Author: Sienna galvanic gaming laptop Doesn't matter. Most important metric is viability of business model going forward and that's not going to be captured in any statement (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877427) |
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Date: April 19th, 2018 7:55 PM Author: Smoky lascivious box office $tocks, another fraud/$cam for banker$ and lawyer$ (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877429) |
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Date: April 19th, 2018 7:56 PM Author: gay stag film friendly grandma How come everyone doesn't do like Buffett and invest based on value and future earning potential? Maybe 'cos it's long term investing and people don't have the patience. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877430) |
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Date: April 19th, 2018 7:58 PM Author: Sienna galvanic gaming laptop At this point Buffett makes a lot of money just on the fact that having him as an investor causes other investors to follow him around. Can you imagine. Whatever stock you picked everyone else bought? Free money (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877447) |
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Date: April 19th, 2018 7:56 PM Author: purple costumed haunted graveyard everything you need to know is in their "social responsibility" policy (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877432) |
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Date: April 19th, 2018 7:57 PM Author: Passionate federal clown Things to look for, in order:
1. Levered to a good / key trend 2. High quality business model (competitive advantages, moat, pricing power, margins, recurring vs non recurring) 3. High quality management team 4. Valuation |
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Date: April 19th, 2018 8:01 PM Author: Aromatic Lodge Why wouldn’t all these things already be priced in?
Only trade on inside information or buy the index imo. Everything else is gambling. Trying to be a retarded version of Buffet is just more time intensive gambling |
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Date: April 19th, 2018 8:07 PM Author: Passionate federal clown Even if you know all this, it is very hard to accurately gauge the trajectory of businesses. If you have a differentiated view on the adoption or penetration of something (or lack thereof) you can make significant money
In 2009 if you realized Apple had something special in the iPhone with significant pricing power, you'd have made a lot of money over the long term
Ditto Netflix and streaming, ditto ANET and datacenter networking, ditto AMZN and AWS, ditto MSFT and Azure, ditto ADBE and Creative Cloud, ditto Priceline and online travel, ditto NVDA and Machine learning, etc. etc.
This might be a tech centric framework/ viewpoint, however
I agree you should buy the index but OP asked for security selection
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Date: April 19th, 2018 8:34 PM Author: Hideous light principal's office Ditto eth and medium of exchange (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877640) |
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Date: April 19th, 2018 8:49 PM Author: Cowardly ruby library But "realizing" is an illusion. For every Apple there's another great idea that went nowhere. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877723) |
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Date: April 19th, 2018 8:57 PM Author: Passionate federal clown Sure, that's the hard part of the job
Is the PALM PRE THE NEXT IPHONE KILLA Or does the Apple cachet / iTunes leverage / better app ecosystem win out?
At the end of the day it's a gigantic casino, and you make your bets with the best knowledge/research you have |
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Date: April 19th, 2018 8:58 PM Author: Aromatic Lodge Exactly. And the prices probably reflect the expected value of the different possible outcomes. I’m inclined to trust the market’s aggregate view of the chances of an upside case vs my own.
Think about all the shit that had to go right for Apple to get here. It’d be pretty stupid to have been all that confident of it in 2009 tbh |
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Date: April 19th, 2018 9:00 PM Author: Passionate federal clown That's where if you have an edge and know the expected value is off you can make money
re: Apple, for sure. I don't think anyone in their wildest dreams would have thought it would be where it is now
But here's an example. When Apple was releasing the bigger screen phone for the first time - iPhone 6. You could have had a differentiated view on that
Or another example. How about a couple years ago when we came up with the Netflix GF meme? Imagine how fucking sticky that product is for a vast swath of people. Then think to yourself, fuck they could double the price and my GF would still pay the $.
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Date: April 19th, 2018 9:01 PM Author: laughsome party of the first part property just do options (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877806) |
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Date: May 12th, 2018 11:44 AM Author: Heady field For expected value to even be the right framework, your bet sizes would need to be so small that you would: 1) probably not have the time to do enough research on enough companies 2) end up owning something looking a lot like the market portfolio anyway |
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Date: April 19th, 2018 9:01 PM Author: Arrogant crackhouse water buffalo this hurts. reminds me of the couple times i wish i had money to drop in the past. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877801) |
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Date: April 19th, 2018 8:20 PM Author: outnumbered duck-like kitchen boltzmann Take 75% of your cash/savings wealth (aside from 6 month emergency fund etc. bs) and put in some sort of safe auto invested portfolio by a major broker that doesn't charge direct fees for it (Schwab, etc.) - only real way to build wealth is through long term investing in ETFs/index funds
Then take 25% and TRADE meme stocks like AMD, MU, WEED, etc. Follow a handful of very volatile stocks and recognize there are clear patterns they follow and know how to exploit them.
Then cry as you lose money |
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Date: April 19th, 2018 8:50 PM Author: Cowardly ruby library CR (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877729) |
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Date: April 19th, 2018 8:51 PM Author: laughsome party of the first part property lol prole Robbin Hood user tell
"I rika AMD & MU!"
While you faggots were fucking around with meme stocks, you could have put money on Boeing and made millions |
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Date: April 19th, 2018 8:31 PM Author: territorial dashing faggot firefighter buy a bunch of random stocks, slide and let do (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877632) |
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Date: April 19th, 2018 9:09 PM Author: insane jade people who are hurt VTI and VXUS are a lot easier. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877863) |
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Date: April 19th, 2018 8:35 PM Author: aqua theatre alpha you gotta get in on the ground floor of these high risk sub-penny stocks and go all balls in. only way to play the game. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877642) |
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Date: April 19th, 2018 8:57 PM Author: splenetic yapping preventive strike cruise ship isn't this the premise of Value Investing? Here is how you look at a company to determine its value? (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877773) |
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Date: April 19th, 2018 8:59 PM Author: Passionate federal clown True value investing in the Buffet/Graham mold is dead
It worked when lack of information / competition meant you could literally find companies trading at valuations below the cash on their balance sheet
Now Buffett buys IBM stock because "Value!" |
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Date: April 19th, 2018 9:09 PM Author: Massive resort just do emerging markets
almost nobody has an "edge" on large cap tech. it's all flame and wall street hubris, and dumbs with money feeding them capital. |
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Date: May 12th, 2018 11:46 AM Author: Heady field Lol if you think emerging markets are that much less efficient after you control for the added research costs. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#36036168) |
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Date: May 12th, 2018 11:49 AM Author: Aromatic Lodge this seems intuitively right. though i’d say buffet still makes good arguments for his investments based on stuff like barriers to entry or a lack of substitutes. maybe he’s still good at finding opportunities? (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#36036180) |
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Date: April 19th, 2018 9:10 PM Author: Massive resort you don't. but accounting isn't hard to understand. the issue is the time investment required. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877865) |
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Date: April 19th, 2018 9:14 PM Author: laughsome party of the first part property why not do options? you bet the least amount of money for the most potential gains (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#35877888) |
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Date: May 12th, 2018 11:29 AM Author: gay stag film friendly grandma it's the language of bizness. if ya wanna read companies' annual reports/10Ks ya gotta know the lingo. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#36036115) |
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Date: May 12th, 2018 11:45 AM Author: Gold Internal Respiration Stock Car you can learn it on the internet pretty quickly (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#36036161) |
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Date: May 12th, 2018 11:48 AM Author: Heady field Maybe the average 130iq xo poster can learn it on the internet, but lol at the average kid I went to high school doing that. (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#36036177) |
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Date: May 12th, 2018 12:12 PM Author: Gold Internal Respiration Stock Car ur average 110 IQ person can learn it in their free time dude (http://www.autoadmit.com/thread.php?thread_id=3374885&forum_id=2#36036266) |