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I'm a staying home Mom who loves numbers and computer. So my husband suggest that I should learn about the stock marketing and try to make some money out of it, even if it's going to be for our retirement. I'm 27, am I too old to start? I'm totally ignorant about stock marketing. Do know know where I should start? Thank you!
Answer
What helped me was reading a book called the basics of stocks" by Gerald Krefetz. The book is old but the knowledge is still the same. Ignore the chapter on technical analysis, he tries to summarize technical analysis in one chapter. That is another book of itself. Read this book first. here is the isbn #. 0793103592. The book is old and can be hard to find so I included a url for you.
http://product.half.ebay.com/_W0QQprZ1213497
"Value Investing made easy"- by Janet lowe, (only read the first 4 chapters). This book gives you a formula that will help you find steal stocks.
Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage- This book will explain the terminology. For instance money has many different terms like cheese, chedder, dead presidents, grean, big head ones and ect. but it all means money.
"Big profits from small stocks" by samuel case. This book was written to help find value in small stocks but the formulas and knowledge can be applied to mid and large cap stocks as well.
Finally look at my sources especially the about.com articles listed in the sources section. Here are some websites that are crucial in helping you understand what the formulas mean in plain language". UTILIZE THEM TRUST ME. (READ ALL OF BEGINNERINVEST.ABOUT ARTICLES-)
investopedia.com and yahoo answers,
http://www.morningstar.com/Cover/Stocks.html
http://www.reuters.com/finance/stocks
I have been watching the stocks and buying a few shares since I was 18; however when I went to college I became lazy and lost interest (spending time on unhealthy things). I have been blessed by GOD to learn so much in the past 2 years and now I am on to technical analysis (just utilizing 4 tools right now) and option contracts.
Also, you need to look at other books about the stock market b/c some authors explain some formulas and concepts better than others. ***Think of it like talking to your familiy/friends about an issue. Some people complicate things while others simplify what is complicated***
Also if you need access to the annual and quarterly reports you can use the sec (security and exchange commission) to view them. This is the way I started but it is very time consuming and complicated.Do this only after you have had extensive experience reading annual reports. Some are easy and some are complex. For instance here are 2 examples of 2 companies I have been tracking look at them and you will see what I am talking about. (Jennifer convertibles-JEN and Radian Group-RDN)
http://sec.gov/Archives/edgar/data/806817/000131727309000002/jen10qmay09.htm
http://sec.gov/Archives/edgar/data/890926/000119312509170839/d10q.htm
After 3 months I was directed to 2 other sources that really simplified the process and I have been using them for close to 2 years; rueters.com and morningtar.com. Both give you access to the 10-K and 10-Q reports and they give you the answers. I prefer reuters.com b/c they go in more detail and show the info for the TTM(trailing 12 months) however morningtar.com just adds it up for you.***look at the examples I have listed below*** On the bright side morningstar does give you the 10 year report and they put all the info on one page without having to switch from annual to quarterly like reuters.com. In addition they (morningstar.com) gives you the answer for the previous years (that way you know you your answers are right). Rueters doesn't. Here's and example of a stock I have been following b/c I want to buy there option contracts***ticker symbol-DTG*** and here is there 10-k and10-Q reports from each site. http://quicktake.morningstar.com/StockNet/Income10.aspx?Symbol=DTG&Country=USA
http://quicktake.morningstar.com/StockNet/Profitability10.aspx?Country=USA&Symbol=DTG
http://www.reuters.com/finance/stocks/incomeStatement?symbol=DTG.N
http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=ANN&symbol=DTG.N
http://www.reuters.com/finance/stocks/ratios?symbol=DTG.N
I have used both to verfify my answers to make sure I am doing it correct. Sometimes morningstars answers will br different than reuters. The reason why is b/c morningstar uses the bottom line net income to calcluate net profit margin, return on equity, return on assets and ect. Rueters just uses net income after taxes to find the net profit margin and return on assets and they use net profit before extra items to find the return on equity. Also to find operating margin you should exclude interest expense, unfortunately retuers adds it to operating expenses depending on the business (interest expense is an operational cost for some companines to do business, but it should be subtracted after operation expenses to find the true operating margin. Also it is never to late to learn, I am a 28 year old college student and I have plenty of work to show you how GOD has guided me in the process. Also read this final book, it will make everything make
What helped me was reading a book called the basics of stocks" by Gerald Krefetz. The book is old but the knowledge is still the same. Ignore the chapter on technical analysis, he tries to summarize technical analysis in one chapter. That is another book of itself. Read this book first. here is the isbn #. 0793103592. The book is old and can be hard to find so I included a url for you.
http://product.half.ebay.com/_W0QQprZ1213497
"Value Investing made easy"- by Janet lowe, (only read the first 4 chapters). This book gives you a formula that will help you find steal stocks.
Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage- This book will explain the terminology. For instance money has many different terms like cheese, chedder, dead presidents, grean, big head ones and ect. but it all means money.
"Big profits from small stocks" by samuel case. This book was written to help find value in small stocks but the formulas and knowledge can be applied to mid and large cap stocks as well.
Finally look at my sources especially the about.com articles listed in the sources section. Here are some websites that are crucial in helping you understand what the formulas mean in plain language". UTILIZE THEM TRUST ME. (READ ALL OF BEGINNERINVEST.ABOUT ARTICLES-)
investopedia.com and yahoo answers,
http://www.morningstar.com/Cover/Stocks.html
http://www.reuters.com/finance/stocks
I have been watching the stocks and buying a few shares since I was 18; however when I went to college I became lazy and lost interest (spending time on unhealthy things). I have been blessed by GOD to learn so much in the past 2 years and now I am on to technical analysis (just utilizing 4 tools right now) and option contracts.
Also, you need to look at other books about the stock market b/c some authors explain some formulas and concepts better than others. ***Think of it like talking to your familiy/friends about an issue. Some people complicate things while others simplify what is complicated***
Also if you need access to the annual and quarterly reports you can use the sec (security and exchange commission) to view them. This is the way I started but it is very time consuming and complicated.Do this only after you have had extensive experience reading annual reports. Some are easy and some are complex. For instance here are 2 examples of 2 companies I have been tracking look at them and you will see what I am talking about. (Jennifer convertibles-JEN and Radian Group-RDN)
http://sec.gov/Archives/edgar/data/806817/000131727309000002/jen10qmay09.htm
http://sec.gov/Archives/edgar/data/890926/000119312509170839/d10q.htm
After 3 months I was directed to 2 other sources that really simplified the process and I have been using them for close to 2 years; rueters.com and morningtar.com. Both give you access to the 10-K and 10-Q reports and they give you the answers. I prefer reuters.com b/c they go in more detail and show the info for the TTM(trailing 12 months) however morningtar.com just adds it up for you.***look at the examples I have listed below*** On the bright side morningstar does give you the 10 year report and they put all the info on one page without having to switch from annual to quarterly like reuters.com. In addition they (morningstar.com) gives you the answer for the previous years (that way you know you your answers are right). Rueters doesn't. Here's and example of a stock I have been following b/c I want to buy there option contracts***ticker symbol-DTG*** and here is there 10-k and10-Q reports from each site. http://quicktake.morningstar.com/StockNet/Income10.aspx?Symbol=DTG&Country=USA
http://quicktake.morningstar.com/StockNet/Profitability10.aspx?Country=USA&Symbol=DTG
http://www.reuters.com/finance/stocks/incomeStatement?symbol=DTG.N
http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=ANN&symbol=DTG.N
http://www.reuters.com/finance/stocks/ratios?symbol=DTG.N
I have used both to verfify my answers to make sure I am doing it correct. Sometimes morningstars answers will br different than reuters. The reason why is b/c morningstar uses the bottom line net income to calcluate net profit margin, return on equity, return on assets and ect. Rueters just uses net income after taxes to find the net profit margin and return on assets and they use net profit before extra items to find the return on equity. Also to find operating margin you should exclude interest expense, unfortunately retuers adds it to operating expenses depending on the business (interest expense is an operational cost for some companines to do business, but it should be subtracted after operation expenses to find the true operating margin. Also it is never to late to learn, I am a 28 year old college student and I have plenty of work to show you how GOD has guided me in the process. Also read this final book, it will make everything make
Can anyone recommend a good book on Value investing?
blahblah
i know the basics but want to start getting serious.
Answer
Without a doubt, the definitive "bible" on value investing was "The Intelligent Investor" by legendary value guru, Ben Graham. Graham of course is the Columbia professor, economist, and investment innovator upon whom Warren Buffet has based many of his theories. Buffett describes The Intelligent Investor as "the best book on investing EVER written."
You can read more about Graham here:
http://en.wikipedia.org/wiki/Benjamin_Graham
His book is currently available in a revised edition. Here's the Amazon link:
http://www.amazon.com/gp/product/0060555661/104-8758704-2903962?v=glance&n=283155
Hope this helps!
--J.
Without a doubt, the definitive "bible" on value investing was "The Intelligent Investor" by legendary value guru, Ben Graham. Graham of course is the Columbia professor, economist, and investment innovator upon whom Warren Buffet has based many of his theories. Buffett describes The Intelligent Investor as "the best book on investing EVER written."
You can read more about Graham here:
http://en.wikipedia.org/wiki/Benjamin_Graham
His book is currently available in a revised edition. Here's the Amazon link:
http://www.amazon.com/gp/product/0060555661/104-8758704-2903962?v=glance&n=283155
Hope this helps!
--J.
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