investinvest the world's fundamentalist style BOOK #4

in Hive Book Club3 years ago

The secret to buying stocks whose price is too cheap for their value

img_0.4719893111345269.jpg

Book creator : @Ryanfilber @williamPrasetya


Score is everything
A company is certainly established to generate profits, including companies that issue shares and bonds (debt securities).on the exchange I've never heard of a company created to lose money Continously Except for money laundering companies, hehehe...

img_0.27636728299135.jpg

However, over time, does the company always make a profit, Print profits that grow continuously, and never experience difficulties? Of course the answer is no. The world's biggest companies have fallen. An example is general electricity. In A CEO who is now considered As the most successful and most controversial ceo in d, jack welch succeeded in elevating general electricity to become one of the The most valuable company in the world to date
How do you know if you are healthy or sick? Yes, the answer is a Measure body temperature. If you are cold, it is an indication that you are sick. Right, then what kind of body temperature can make you categorized as a fever?You are said to have a fever when your body temperature exceeds normal body limits. What is normal body temperature? Normal body temperature is 37 degrees Celsius. Who said that numbers 37 degrees Celsius is normal? From a doctor in Germany in the 19th century, dr. Carl Wunderlich, who has tested thousands of patients. .

img_0.1641366280863971.jpg

So, when associated with a company, when is a person said to be bankrupt? One definition of bankruptcy is when Have a lot of debt. Unpaid debt because the company itself has nothing. Looking at the situation, it is clear that even a company can be "sick" which can be Ends in death. That death is the bankruptcy of the company....
An investor who wants to buy company shares, of course, needs more than just counting shirt buttons to choose a share name to buy from a list of share names Company. It takes more than tossing a cat and deciding which stock name your cat stepped on to buy. This is not a guess that actually leads to gambling A true stock investor performs an analysis like choosing a life partner-researching The history and journey of the company

img_0.32262233862859474.jpg
@Warren Buffett
Warren Buffett Is the largest investor in the world, is considered the most successful person in analyzing financial statements. Therefore, he managed to become the richest person in the world for several years. However, he Never clearly shared how to analyze the company's health until finally the company was bought so that it managed to lead him to become an investor Success in the world. Everyone is trying to learn how to choose Buffett's stocks in the notes that Buffett makes to his investors...
Thanks to that, an idea was born by writing a book that clearly contains, what kind of score on the financial statements can lead us to find a company whose shares Grow and profit

"Investing has risk, but not investing has a more absolute risk, namely loss."

img_0.3616788154590315.jpg
What can we get from recording financial transactions?
If you open a small shop that says sell drinks light or fizzy, as long as the shop is open there are still buyers, regardless of whether it's quiet or crowded with buyers..
There are at least two types of shop owners. Thoughts of the first type of stall owner o very simple, that is, whatever money received today will be used for buy stock drinks tomorrow. While the second type is a shop owner who records simply the results of his drink sales.

img_0.29839572459221814.jpg
cash is kiingg
From the name, we can guess what the contents of the cash flow financial statements are. Flow is a flow, meaning we will discuss what flows within the company.
We'll look at how money actually goes in and out of a company. It's really pure cash . You see, other reports do not contain pure cash.?
Well, other reports also have pure cash elements, but are still mixed with other elements such as debts and receivables, on the balance sheet, it can be city See that there is a nominal cash owned by the company which from year k year, usually, its value grows. However, we don't know where the cash growth comes from, whether it's from its business operations or from outside the company's operations

This is my entry for the daily #book challenge hosted by @hivebookclub.

img_0.3822277543765234.jpg

Sort:  

Congratulations @zieell! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s):

You published more than 10 posts.
Your next target is to reach 20 posts.
You distributed more than 10 upvotes.
Your next target is to reach 50 upvotes.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Check out the last post from @hivebuzz:

Happy New Year - Feedback from the first Hive Power Up Day of 2022
PUD - PUH - PUM - It's all about to Power Up!
Support the HiveBuzz project. Vote for our proposal!

Your content has been voted as a part of Encouragement program. Keep up the good work!

Use Ecency daily to boost your growth on platform!

Support Ecency
Vote for new Proposal
Delegate HP and earn more

Postingan yang bagus, pertahankan. 👍

thank you very much bro