How do valuebuddies do their homework?

[D.L]

Hi Buddies,

As I am still quite a newbie on stock investing, just wondering how each buddies conduct their fundamental analysis (doing homework). I understand that each of us has different style of doing homework. Could any buddies share with me how do you conduct fundamental analysis before doing any trade (Buy or Sell) and how much analysis must be done to be enough.

[Jack31]

I will give a brief 1. That's for me.

1) go sgx website - consistency of div/ yield
2) go sgx website - any rights issue (if too much over a short period of time e.g 2 over 5 years)
3) whether it's an s-chip
4) drag out annual report/quarter report. (as usually look at rev, eps, NAV, receivable, debt , margin etc)
5) google comment from forumner (recommend valuebuddies )
6) look at pass year chart and price movement
7) overall think about the business outlook long term/short term.
8) hoot!
Of course many other small details in the steps, but generally it's like that.

[valuebuddies]

Mine more or less as above, but I would add 0.5 before 1: go Google Screener to filter out some of the best companies.

[chialc88]

Me too.
But my mindset will be very different.
Instead of buying business, I actually looks for business to avoid.
It's much easy for me.
You see, I kept eliminating company until only a handful that meets all criteria (including #8) before sinking my hard earn $.
So, this is me:
1. not important
2. 100% no rights
3. yup
4. + who are the stakeholder
5. erh...I don't read the +ve comments by VB, rather I read -ve comments as a potential problem area to study harder.
6. yup
7. yup
8. yup. I remind myself on one of our VB signature "Buying stock is like buying risk"
Love Compassion


Earth day - save the world everyday.

[brattzz]

1) From Marco perspective, seasonal conditions, black-swans, biz cycles, IPOs(usually no good deals) ...etc
2) Affected industries/companies/new start-ups...
3) Good track record management at least for XX years, (depending on complexity of biz)
4) Read up forums for basic info checks, eg,http://nextinsight.net/http://www.remisiers.org/index.php?option=com_content&view=category&id=6&Itemid=16
Usually analysts not accurate at buy/sell calls (So just BUY when they say SELL! haha! )
5) Basic TA price checks & FA checks (No Debt is BEST, eps, good cashflow!)
6) BUY BUY BUY!!

Key-point is Biz fundamentals are sound, but due to market weakness.. offers a good margin of safety and of cos, good yield!
If oversight and buy wrongly, SELL, try not to lose money!

Something like that...

[chialc88]

1) over-rated. can try but I reminded what WB says. most people would assume that Charlie and myself spends a lot of time on this. but actually, we don't care about this when we invest our $.
2) of course, I would try but the result is far from satisfactory. partly due to #1) but mainly due to big brother already taken up all the positions that they wanted and then let out the news ... for me to buy.
3) of course, I would try but again limited knowledge/contact to make a fruitful return (yet).
4&5) No Debt, good cashflow - very funny. Some of my favorites was purchased when their results was in -ve territory. They are rock solid companies but with a few Q of bad results. Then, you'll notice that some famous VB/forums will says that they will not own the stock... then, I started to initiate my position. very ironic - even I felt myself.
6) yes! I remind myself again that I'm buying risk!

Love Compassion

[Curiousparty]

I like your point NO 5.

Best if the forum just discuss the investment "demerits" of a counter

Me too.
But my mindset will be very different.
Instead of buying business, I actually looks for business to avoid.
It's much easy for me.
You see, I kept eliminating company until only a handful that meets all criteria (including #8) before sinking my hard earn $.
So, this is me:
1. not important
2. 100% no rights
3. yup
4. + who are the stakeholder
5. erh...I don't read the +ve comments by VB, rather I read -ve comments as a potential problem area to study harder.
6. yup
7. yup
8. yup. I remind myself on one of our VB signature "Buying stock is like buying risk"
Love Compassion


Earth day - save the world everyday.

[BaconFTW]

Hi all! I'm new here and am just embarking on my investing journey

For me, i try to look at a company's fcf. But i'm not sure if this is applicable to all sectors/industries. E.g telcos here will prob have less assets (hence less working capital) than say an airline.

Then i check the usual ratios - p/b, p/e, div yields.

Any advice if im on the right track? Thks mucho!

[Life is a game]

I will read up economist view of the marco economy first then decide on industry/company to invest. Thereafter will be the norm. Look at mgmt of the company, financial ratios, track record. my personal preference is return on equity. For companies with below 8% ROE, I prefer that they return the money to shareholders in the form of dividend. 15% and above I am inclined the company retained all earnings and produce growth which is better for share price in long run. Between 8 - 15%, prefer some dividend and some retained for growth. This is purely my preference only. advisable to set your own because our risk appetite is different.

[Greenrookie]

Hi.

After the numbers, it is important to ascertain what is the growth... This can usually be done through qualitative research.

I am very bad at this:

1) I try to do this by looking at yielding acquisition e.g. Singapore shipping, or a cyclical recovery play, YZJ in the past and Venture now... Order book growth and gain of customers ... Increase of capacity etc...

Just my 2 cents worth