주식투자/Buffett's Books Academy20 5. Warren Buffett Stock Basics Warren Buffett's 4 rules for buying stocksA stock must be stable and understandableA stock must have long term prospectsA stock must be managed by vigilant leadersA stock must be undervaluedA Warren Buffett valuation techniqueMarket Price: $10Earnings: $2 (Potential returns)Book Value: $.70 (Margin of safety)P/E = $10/$2 = 5Returns = 20%P/BV = $10/$0.70 = 14.3Every 14.3 dollars paid for this com.. 2024. 7. 3. 4. What is a Share What is a share?A portion of the whole business divided into a certain amount of pieces.What is Shares Outstanding?The number of pieces that the company has divided up into.Comparing terminology between a whole business and 1 shareWhole BusinessMarket Price: $100,000Income Statement: Net Income of $20,000Balance Sheet: Equity of $7,000Cash Flow Statement: Taught in course 21 ShareShares outstand.. 2024. 7. 3. 3. What is a Balance Sheet & Margin of Safety Understand the importance of a balance sheetIncome Statement, used to find the company profit, details out the net income or earnings.On the other hand, we can use the balance sheet to determine the margin of safety that you'd get if you were to purchase the business.To understand the concept of balance sheet, ask this question: what would happen if the business would liquidate right now?How to .. 2024. 7. 3. 2. Value A Small Business Describe a small business modelThe owner (outside)The businessThe customerHow money flows through a small businessTotal revenue (from customer) - Cost of revenue - Taxes = Net Income or Earnings (Net Income / # Shares)Owners can decide two things:Put money into the owner's pocket (dividends)Or, keep the money in the business (stacking the equity)A comparison of a small and large businessIn large.. 2024. 7. 3. 1. What is Value Investing? The difference between value trading and value investingThe difference between value trading and value investing is that value trading involves exchanging items for those with higher values, while value investing entails holding an item or asset that grows in value over time.The difference between an asset and liabilityAsset: something that put money into your pockete.g.: apartment building (hou.. 2024. 7. 3. 이전 1 2 다음