주식투자/Buffett's Books Academy20 22. What is a Preferred Share? What is a preferred Share?Risk: Bond Like a Bond: Preferred shares pay dividends instead of couponsLike a Common Stock: A preferred share is a proportional piece of equity in a businessWhat are considerations when buying a preferred share?Read the certificate of designationCumulative Preferred: You'll eventually get your dividend but you might not have the ability to compound a consistent divide.. 2024. 7. 5. 21. Warren Buffett's 4th Rule - Determining the Intrinsic Value of a stock 4th Rule: A stock must be undervaluedHow do we calculate the intrinsic value of a stockIntrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.How do we use the BuffettsBooks.com intrinsic value calculator 2024. 7. 5. 20. Warren Buffett's 3rd Rule - A stock must be stable and understandable 3rd Rule: A stock must be stable and understandableWhy is stability important for determining the intrinsic valueBusinesses manage their finances just like individual people! We must find a company that is less risky to predict.Why it's important to invest in a company that you understand 2024. 7. 5. 19. Warren Buffett's 2nd Rule - Understanding Capital Gains Tax 2nd Rule: A stock must have long term prospectsHow do we identify a company with long term prospects?Predicting which company's will be around in 30 years is impossible, but one's that won't be around are easy to predict.Why do we want to invest in a long term company?Sustained EarningsTaxesWhat is Capital Gains Tax?What is the difference between short term gains and long term gains? 2024. 7. 5. 18. Warren Buffett's 1st Rule - What is the Current Ratio and the Debt to Equity Ratio 1st Rule: A stock must be managed by vigilant leadersDefine Vigilant LeadershipCarefully observant or attentive; on the lookout for possible danger. And the possible danger is the debt.Understand the Debt to Equity RatioWB likes Debt/Equity Understand the Current RatioHow will the company handle debt in the next 12 months?It compares the current assets to the current liabilities.WB likes the cur.. 2024. 7. 5. 16. Calculating the Value of the Bond How does the price of a bond change with interest ratesHow to use the BuffettBooks.com Bond Calculator 2024. 7. 5. 15. What is a Yield Curve What is a yield curve?x-axis: Terms (years)y-axis: Yield (%)Generic positive yield curve (natural)Generic flat yield curveGeneric inverse yield curve (very rare)How can I use a yield curve to predict market behavior?Yield curves are a valuable tool that help investors understand how the federal government is trying to steer the economy.Flat and inverse yield curves mean that the FED wants to slo.. 2024. 7. 5. 14. What is the S&P Rating? What is a credit ratingMoody's, Fitch, S&PEvaluate the ability of municipal or a company to pay backWhat does a rating tell me about riskLooking at the statistics, the risks of not paid back from BBB muni. and AAA company are the sameThink in statistics, yourself.Don't get swung by others 2024. 7. 5. 13. What is Inflation? What is InflationHow and why does the government inflate the currencyWHY?A moderate amount of inflation protects the country from deep recessions / depressionsIt serves as an indirect form of taxationHOW?The FED increases the money supplyReserve ratio. 1/Reserve ratio = multiplier to the base moneyHow does inflation affect bonds and stocksBondActual Bond Yield = Bond Value - Inflation RateTIPS =.. 2024. 7. 5. 12. What is Financial Risk Risk Vs RewardRisk: You'll loose all or some of your moneyReward: You'll make a lot of money that you didn't have to work forWhat is the baseline value for risk and reward10 year, U.S. Federal Note is the baseline investment value. This is our benchmark and it changes everyday.What causes financial risks in a businessExcessive DebtCompanies incur debt because they want to speed up timeThey can o.. 2024. 7. 5. 10 & 11. Market Crashes and Bubbles; FED 10. Stock Market Crashes and Market BubblesUnderstand Fear and Greed CyclesWarren Buffett's opinion on Market PsychologyAccumulating Shares versus Trading Shares11. What is the FEDWhat is the FED?What is the mission of the FED?Maximize employment and stabilize pricesSupervise and regulate banksMaintain the stability of the Financial systemService debts for the US. Federal GovernmentHow does the .. 2024. 7. 5. 9. What is the Stock Market? What is a stock market?How does the stock market work?Sellers > Buyers: Buyers MarketSellers What is a limit and stop order?Market order is an order that doesn't care about the price but buy/sell shares.Stop order: Transaction happens once, so the price you set is not the same if you sell them to more than one buyers. For example, selling 100 shares, you could sell it at $65 for the first 10 sha.. 2024. 7. 5. 8. How do you value a bond and yield to maturity? Simple InterestSimple interest = # of coupons * coupon payment$1,500 = 60 * $25Coupon yield is set when a bond is issued. It is the annual coupon divided by the par value.Coupon Yield = 1 year coupon payments / Par Value5% = $50 / $1,000Compound InterestCompound interest is a return when you keep reinvesting the coupon every time you the money.Current YieldCurrent Yield is the annual coupon divi.. 2024. 7. 5. 7. What are the components of a bond? What is Par ValuePar value, also known as face value or nominal value, is the amount printed on the bond certificate. It represents the principal amount that will be paid to the bondholder at maturity.What is a CouponA coupon is the annual interest rate paid on a bond, expressed as a percentage of the bond's par value. The term comes from the physical coupons that bondholders once had to redeem .. 2024. 7. 3. 6. What is a bond? What is a Bond?Nothing more than a loan.Who uses bonds?Corporation, GovernmentBond RisksCompany or Government FailureInterest Rates ChangeInflationProvided corporate liquidations/failure, the order of equity distribution:Bond holdersPreferred share holdersCommon share holdersWhy is bond investing lucrativeBefore market crashed in around 2008, 30 year federal bond rate had been 5.00% and DJI's av.. 2024. 7. 3. 이전 1 2 다음