Investing - The Basics

[winston]

5 ways investors can make the most of this earnings season

by Julie Hyman

1. Read earnings previews. They’ll give you insight into what keywords to search for and what themes to focus on.

2. Don’t just look to see if companies beat or missed estimates. Are profits and sales rising or falling? By how much, and why?

3. Did the company change its forecasts? Did it beat earnings estimates but neglect to raise its full-year earnings forecast? Did it explain why?

4. Look at margins. For the tech firms, you might want to word-search “compensation” in the release. Even though inflation is moderating, costs for many companies are not coming down, particularly for labor. Relatedly, look for signs of pricing power (which is now stalling out for some firms after big gains in prices over the past few quarters).

5. Consider the intangibles like culture and management quality. You can glean this from things like long-term stock performance and also from the tone on the conference call. Which executives participate? What is their vibe, and how formal or informal are they? Do they actually answer questions posed by analysts on the call or by journalists in interviews?

Source: Yahoo Finance

[behappyalways]

Why is Warren Buffett optimistic about BYD?
Chen Fengxin reveals that Wang Chuanfu is Berkshire

股神巴菲特為何看好比亞迪？陳鳳馨揭王傳福是波克夏「甜蜜意外」【Yahoo TV#風向龍鳳配 】

https://m.youtube.com/watch?v=OgYsoWL-CF0

[behappyalways]

10 valuation ratios investors should know
https://twitter.com/Mayhem4Markets/stat ... 7336803524

[behappyalways]

A few of my #investing rules:

· Plan in Advance for Both Directions and Stick to It
· Buy/Sell in Stages in Small Quantities
· Only Use Limit Orders
· Never Risk More Than You Can Lose ENTIRELY
· Plan to be WRONG
· Never Go All-In or Get All-Out
· Buy on Red Days, Sell on Green

https://twitter.com/GetIrked/status/1705224951907979631

[winston]

My 5 Tips to Set Your Portfolio Up for the Long Haul

by Louis Navellier

1. Invest in high margin companies that dominate their business .

2. Along these lines, companies that have margin expansion tend to post bigger earnings surprises.

3. Invest in companies with strong forecasted sales and earnings .

4. Look for companies that see positive analyst revisions in the past three months, as these typically post earnings surprises .

5. If you’re a dividend investor, focus on companies that are consistently raising their dividends.

Source: Investor Place

[behappyalways]

flows > macro > technical analysis
https://twitter.com/WifeyAlpha/status/1 ... 7110139066

[winston]

7 Investing Lessons From 2023
 
Lesson 1: Quality Outperforms During Periods Of Uncertainty

Lesson 2: Ignore The Predictions

Lesson 3: Markets Do A Pretty Good Job Of Discounting The Future

Lesson 4: It’s Often A Bumpy Road For New Industries

Lesson 5: Investors Need To Pay Close Attention To Their High Yield Stocks

Lesson 6: Companies Can Also Be Over-Concentrated

Lesson 7: Great Companies Continuously Reinvent Themselves

Source: Simply Wall St

[winston]

The Simplest Way to Get Rich

by Porter Stansberry

First, the amount of capital that’s invested is important. Thus, the cardinal rule is: Don’t lose money. Money lost cannot be invested and will not compound.

Second, time matters. The duration an investment may be held continuously with dividends reinvested is critical.

And the third important factor is the rate of compound growth.

Buy capital-efficient businesses that have long-lived products and are capable of increasing payouts year after year.

Source: DailyWealth.com

https://dailytradealert.com/2023/12/21/ ... -get-rich/

[winston]

How to Find Great Businesses and Avoid Bad Ones

by Porter Stansberry

Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, 10, and 20 years from now.

The most obvious characteristic of a great business is high profit margins.
1. Cash operating profit margin: cash from operations/revenue (should be greater than 20%).

The next “mile marker” you’re looking for is something we call capital efficiency…
2. Shareholder payout ratio: capital returned to shareholders/capital expenditures (should be greater than 1).

The third part of our four-part litmus test for great businesses is “return on invested capital.”
3. Return on invested capital: net income/long-term debt + shareholder equity (should be greater than 20%).

The last part of our “great business” test is called return on net tangible assets.
4. Returns on net tangible assets: net income/net tangible assets (should be greater than 20%).

Source: DailyWealth.com

https://dailytradealert.com/2024/02/01/ ... -bad-ones/

[behappyalways]

Optimistic Mindset Linked To Poor Decision Making
https://www.zerohedge.com/political/opt ... ion-making