Investing 101
Interesting facts:
Born and raised in the small town of Arthur, ON 1 younger brother and sister Saw his dog kill and literally devour an entire ground hog (video to prove it) Shook hands with Bobby Orr You miss 100% of the shots you dont take. -Wayne Gretzky Michael Scott
Favourite quote:
Future:
Investing 101
John Walsh H.BSc. & BSc. Pharm Candidate
Another option
Banks/financial advisors
Outline
Step-by-step how to get started Choosing a broker Opening an account Investing strategies How to screen for high quality stocks How to select a stock Determining value Making the purchase
Choosing a Broker
Choosing a Broker
Stockbroker: Regulated professional individual licensed to buy and sell securities (such as shares of stock) on your behalf. Examples:
The Banks
TD Waterhouse, Scotia iTrade, BMO InvestorLine, National , CIBC Investors Edge, etc
Interactive Brokers
Questrade
Flexible
Opening an Account
Personal Information
Drivers License Bank information (account number, and transit number) Type of account
eSignatures Scan and upload copy of Drivers License Scan and upload copy of void cheque Fund account (at least $1,000)
Investing Strategies
Value investing Technical analysis Day trading Swing trading Momentum trading Chart (pattern) trading Index investing Price/volume analysis
Value Investing
Large companies
Competitive advantage
Growing
No fear of bankruptcy
Finviz.com
Selecting a Stock
Assumptions
P/E Ratio
Desired Return
WDC Financials
References
Canadian Investor Protection Fund. Member directory. Questrade. http://www.cipf.ca/Public/MemberDirectory/CurrentMembers.aspx Graham B. The intelligent investor; revised edition. New York, NY; Harper. 2006. Greenblatt, J. The little book that beats the market. John Wiley & Sons. 2010. Finviz. http://finviz.com/ Google Finance. https://www.google.ca/finance?hl=en&ei=ia0JUeDUA8_FqQG9gwE Ho K, Robinson C. Personal financial planning, 4th ed. Concord, ON; Captus Press Inc. 2005. Kwag S, Lee S. Value investing and the business cycle. Journal of Financial Planning. 2006:7;1-11. Louis K, Chan C, Lakonishok J. Value and growth invetsing: review and update. Financial Analyst Journal. 2004:60(1);71-86. Maunoussin M,Johnson P. Competitive advantage period: the neglected value driver. 1997:26(2);67-74. McGugan I. Targeting a 15% return with these stocks. The Globe and Mail. Published Jan 2013. http://www.theglobeandmail.com/globe-investor/investment-ideas/number-cruncher/a-benjamin-graham-inspired-search-forvalue/article7494862/ Mizrahi C. Getting started in value investing. Hoboken, NJ; John Wiley & Sons. 2008. Piotroski J. Value investing: the use of historical financial information to separate winners from losers. Journal of Accounting Research. 2000:38;1-41. Porta R, et al. Good news for value stocks: further evidence on market efficiency. The Journal of Finance. 1997:52(2). 859-74. Questrade Canada. Questrade.com Reuters. Financials: Western Digital Corp. http://www.reuters.com/finance/stocks/financialHighlights?symbol=WDC.O Rothery N. Want bargain stocks? How to sculpt a value portfolio. The Globe and Mail. Published Nov 2012. http://www.theglobeandmail.com/globe-investor/investment-ideas/strategy-lab/value-investing/want-bargains-how-to-sculpta-value-portfolio/article5537445/ Speidell L, Graves J. Are growth and value dead? A new framework. The Journal of Investing. 2001:10(4);6-13. Sorensen E, Thum C. The use and misuse of value investing. Financial Analyst Journal. 1992:48(2);51-58. Statscan. Average hourly wages of employees, Ontario. http://www.statcan.gc.ca/tables-tableaux/sumsom/l01/cst01/labr69g-eng.htm Tattersall R. Deep-value investing: bargain hunting need not be a crap shoot. The Globe and Mail. Published Jan 2013. http://www.theglobeandmail.com/globe-investor/investment-ideas/bargain-hunting-need-not-be-a-crap-shoot/article7975763/ Western Digital Corporation. 2012 Annual Report and Form 10-k.2012. https://materials.proxyvote.com/Approved/958102/20120917/AR_142253/
Buffetts Performance
Recent Example
Price on July 10th, 2012: $71.30 Price as of Jan. 30th, 2013: $83.63 Two dividends of $0.94/share received Return to date: 19.9% (~7 months)
Someones sitting in the shade today because someone planted a tree a long time ago.
- Warren Buffet