Adrian A Davieson

Fundamentals of Stock Investment Adrian A Davieson

In the Fundamentals of Stock Investment, you will learn about stocks, why it is necessary to invest in stocks, dollar cost averaging, investment choices, simple and compound interest, how to make compound interest work for you, compound interest formulas, and the difference between simple and compound interests, etc. In addition, you will learn about volatilities of single stocks, volatilities of the stock market, and the reason stocks often perform better than other investments. This book will teach you how to find the right stocks, invest long-term, apply margin of safety, buy securities when their market prices are below intrinsic value, how to research organizations, understand capital, risks, and returns. Return on capital and return on stocks, will also be explained. Financial statements, basic ratios, earnings per share, market capitalization, profit margins, and price/earnings ratios, will be discussed. You will learn about price/sales ratio, price/book ratio, price/cash flow, and dividend yield. Other areas discussed include how to use financial services, how to think like an analyst, and find organizations with economic moats and competitive positioning. Income statement, balance sheet, statement of cash flow, how to apply financial ratios, efficiency ratios, liquidity ratios, leverage ratios, and profitability ratios, will be discussed. Accrual accounting, interpretation of numbers, quantification of competitive advantages, will be explained. Valuations, ratios, multiples, discounted cash flow, applying Warren Buffett's fat-pitch strategy, and how to understand various types of dividends, will be explained. Dividend drill, how to construct a portfolio, and find equities, will be discussed. In addition, you will learn about mutual funds, net asset value, earnings via mutual funds, taxes on mutual funds, how to purchase mutual funds, mutual funds expenses, etc.