Last fall I attended a financial seminar and learned about the Financial strategies. Hope my notes can be of use.
- A current ratio: if company lost all its income. How long would it take working at normal capacity with employees and benefits before went bankrupt. If the ratio is 5.79 naked last five years before they go bankrupt. The formulas current assets divided by current liability.
- B: total debt to equity: is a company that has a little debt and a lot of cash. You want this to be as low as possible. Net profit divided by cells.
- Return on assets: how does management handle their profit that comes back to the company?
- If the majority of the time you have green over red. It’s a good stock.
- Average volume per day: number shares of company that is exchanged each day.
- Zach gives ratings of 1 to 5 of good and bad of company. One strong by two semi-good strong by three average five cell quickly.
- DCF analysis: this is one buffets techniques of investing.11-25-14
- Fair value: how much would it cost to start this company from the very beginning? Discount analysis.
- Analysts target Price: what they should sell it at. But many analysts are bias to preserve their jobs.
- Quote: Everything that can be counted counts and not everything that counts can be counted. Albert Einstein
- To buy and sell stock, you will have to get a broker. Some transactions may cost nine dollars
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