Financial Cource

Wealthy Education
Learn More, Live Better!
VALUE INVESTING
THE COMPLETE VALUE INVESTING COURSE

MODULE 1: ENHANCING YOUR FINANCIAL KNOWLEDGE
LEARNING MATERIAL – TAKEAWAY NOTE
www.wealthyeducation.com
DISCLAIMER
LEGALLY REQUIRED DISCLAIMER – THIS COURSE CONTAINS THE PERSONAL
IDEAS AND OPINIONS OF THE COURSE PROVIDERS. THE INFORMATION
CONTAINED IN THIS COURSE IS FOR EDUCATIONAL PURPOSES ONLY. THERE IS
NO RECOMMENDATION OR ADVICE ON MAKING ANY INVESTMENT
DECISIONS, BUYING OR SELLING ANY TYPES OF STOCKS, SECURITIES OR
INVESTMENTS DISCUSSED IN THIS COURSE. THE COURSE PROVIDERS ARE
NEITHER STOCK BROKERS NOR REGISTERED INVESTMENT ADVISORS. WE DO
NOT RECOMMEND MAKING ANY INVESTMENT DECISIONS PROPOSED IN THIS
COURSE. INDIVIDUALS SHOULD FIND REGISTERED INVESTMENT ADVISORS TO
HELP THEM MAKE INVESTMENT DECISIONS. ALTHOUGH THE COURSE
PROVIDERS HAVE STRIVED FOR PROVIDING THE MOST ACCURATE
INFORMATION, THERE IS NO GUARANTEE OR WARRANTY CONCERNING THE
RELIABILITY, ACCURACY AND COMPLETENESS OF THE PROVIDED
INFORMATION. INDIVIDUALS SHOULD BE CAUTIOUS ABOUT MAKING THEIR
OWN INVESTMENT DECISIONS. INDIVIDUALS ARE SOLELY RESPONSIBLE FOR
THEIR INVESTMENT DECISIONS. THE COURSE PROVIDERS ARE NOT
RESPONSIBLE FOR ANY LIABILITIES AND LOSSES, WHICH MAY ARISE FROM
THE USE AND APPLICATION OF THE INFORMATION AND STRATEGIES
PROPOSED IN THIS COURSE.
THANK YOU!
Hello friends,
Congratulations! You’ve completed the Module 1 –

Enhancing Your Financial Knowledge. This is a learning note
that we’ve prepared for you. It includes all key information
in the lectures. You can take it away and revise the course
from anywhere, on any device and at anytime you want.
If you have any concern about the lectures, feel free to send
us a message, we are always here to help you!
Best regards,
Wealthy Education Team.
WHAT IS VALUE INVESTING?
www.wealthyeducation.com Page 1
THE LANGUAGE OF THE BUSINESS
• Accounting is considered the language of the business
• Learning about Accounting is very important because
that will help you make a better investment decision
• However, you do not need to learn everything about
Accounting stuff
• You only need to learn things that can help you make
your investment decisions
• There are three important financial statements that you
must get familiar with:
BALANCE SHEET
• When talking about the balance sheet, you should

never forget the accounting equation
ACCOUNTING EQUATION
• Assets are what the company owns

• Liabilities are what the company owes
• Shareholder’s Equity is simply the capital from the
company’s investors
BALANCE SHEET EXAMPLE
Total Assets = Total Liabilities
ACCOUNTS RECEIVABLE
• Accounts Receivable are recorded on your company’s

balance sheet when you sell a product to your
customers and they have not paid for that product yet
• The amount that your customers owe you is the
Account Receivable
ACCOUNTS RECEIVABLE
• Potential Problems:
 If the Accounts Receivable are High or Too Big
 Increase much Faster than the sales
 Be careful – This is NOT a good sign!
 Problems when collecting money from customers
 Potentially turn into Bad Debts
ACCOUNTS PAYABLE
• Accounts Payable are recorded on your company’s

balance sheet when you buy a product from your
customers and you have not paid for that product yet
• The amount that you owe your customers is the
Account Payable
ACCOUNTS PAYABLE
 If the Accounts Payable are High or Too Big
 Problems when paying short-term debts
 Stuck with financial problems
 Potentially become bankrupt
CASH ACCOUNT
 Cash balance is Too Low
 Cash balance is Too High
 Too Low balance – Potentially stuck with financial problem
 Too High balance – Problems with the management
Cash is the most LIQUID asset!
INVENTORIES ACCOUNT
 If the Inventory figure is High or Too Big
 More Inventories = More Costs => Less Profits
 Problems when selling its products
 Losses caused by obsolete or damaged products
More Inventories = More Holding Costs!
INTANGIBLE ASSETS
• Assets that we cannot see, touch and sense
• Important factor that will help us evaluate the
company’s competitive advantage
• Good businesses often have a high balance in
Intangible Assets (for example, Adidas, Nike, etc.)
• Examples of Intangible Assets:
INCOME STATEMENT
• Only need to remember the Income Statement Formula
EARNINGS PER SHARE
𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 𝐚𝐟𝐭𝐞𝐫 𝐓𝐚𝐱𝐞𝐬

𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞𝐬 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠
• The amount that you will earn for every share that you
are currently holding
INCOME STATEMENT EXAMPLE
𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 𝐚𝐟𝐭𝐞𝐫 𝐓𝐚𝐱𝐞𝐬 $𝟏𝟔,𝟗𝟕𝟓

= = $0.136
𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞𝐬 𝐎𝐮𝐭𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝟏𝟐𝟓,𝟎𝟎𝟎 𝐬𝐡𝐚𝐫𝐞𝐬
CASH FLOW STATEMENT
• There are three main components which are presented

on the Cash Flow Statement:
 Cash Flow from Operating Activities
 Cash Flow from Investing Activities
 Cash Flow from Financing Activities
• Note the Free Cash Flow figure
• FCF = Operating Cash Flow – Capital Expenditure
CASH FLOW STATEMENT EXAMPLE
Wealthy Education
THANK YOU!
FOR MORE INFORMATION:

VISIT: WWW.WEALTHYEDUCATION.COM
Wealthy Education
VALUE INVESTING

MODULE 2: 12 ESSENTIAL STOCK PICKING CRITERIA
DISCLAIMER
THANK YOU!
Hello friends,
Congratulations! You’ve completed the Module 2 – 12

Essential Stock Picking Criteria. This is a learning note that
we’ve prepared for you. It includes all key information in the
lectures. You can take it away and revise the course from
anywhere, on any device and at anytime you want.
Best regards,
REAL-WORLD INVESTING ADVICE
• It’s virtually impossible to predict the market
• You should try to make investment decisions by
yourself
• Many investors have been failing because they listened
to other people to make investment decisions
• The stock market is highly affected by the emotion of
the investors
Don’t Try to Predict the Market!
PROFITABLE INVESTING STRATEGY
• By being conservative when making your investment
decisions, you can minimize the risks on your
investments, thereby maximize your profit
• Investing for a long-term is also very important if you
wan to build a satisfying retirement plan
• The longer you invest your money, the lower risks you
take on your investment portfolio
Being Conservative
Invest Long-term
#1 CRITERION
 MARKET CAP 
• There are 3 categories of market capitalization:
 Small Cap (under $2 Billion)
 Mid Cap ($2 - $10 Billion)
 Large Cap (over $10 Billion)
• Small Cap stocks tend to generate much more profits
than the mid-cap and large-cap stocks
• However, the small-cap market is very volatile and risky
• You should avoid investing in Small-cap Businesses
#2 CRITERION
 STOCK MARKET SECTOR 
(Upturn Economy) (Downturn Economy)
• Understanding the stock market sector rotation is very

important
• When the economy is going up, you should invest in
stocks in the cyclical sectors to maximize your profits
• When the economy is declining, you should buy stocks
in the defensive sectors to minimize the risks
#3 CRITERION
 NET INCOME 
• You can find the Net Income figure on the company’s

Income Statement
• Predict the future performance of the business
• Criterion:
 Net Income has been consistently growing for 3
years or longer
 Last year Net Income grew by more than 20%
#4 CRITERION
 SALES REVENEUE 
• You can find the Sales Revenue figure on the company’s

Income Statement
• Avoid misleading information
• Criterion:
 The Sales Revenue has been consistently growing
for 3 years or longer
 Grew at the Same rate as the Net Income
#5 CRITERION
 OPERATING CASH FLOW 
• You can find the Operating Cash Flow figure on the

company’s Cash Flow Statement
• Detect Potential Problem
• Criterion:
 The Operating Cash Flow should remain stable or
growing for 3 years or longer
 Avoid Negative Operating Cash Flow
#6 CRITERION
 EARNINGS PER SHARE 
• You can find the Earnings Per Share figure on the

company’s Information Statement
• Criterion:
 Current Quarter’s EPS grew over 20% compared
with the EPS reported on the same quarter of the
previous year
 Long-term EPS Growth Rate over 10%
#7 CRITERION
 RETURN ON EQUITY (ROE) 
𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞
ROE =
𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫 ′ 𝐬 𝐄𝐪𝐮𝐢𝐭𝐲
• You can find the ROE ratio on some investment

research sites (i.e. Morningstar.com, Yahoo Finance)
• Criterion:
 Average ROE (3-5 years) > 12%
 Previous Year’s ROE > 15%
#8 CRITERION
 DEBT SETTLEMENT CAPACITY 
• You can find the Free Cash Flow figure on some

investment research sites (i.e. Morningstar.com)
• You can find the Long-term Debt figure on the
company’s balance sheet
• Criterion:
 3 x Free Cash Flow > Long-term Debt
#9 CRITERION
 FUTURE PROSPECTS 
You need to have a vision!
• You should spend your time reading the company’s

annual reports and analysts’ reports
• The more you understand the company, the better
investment decision you can make
#10 CRITERION
 PEG RATIO 
• PEG stands for Price / Earnings to Growth
• Instead of using the PE ratio, you should try to use the
PEG ratio
• You can easily find the PEG ratio on some investment
research sites (i.e. Zacks.com, Yahoo Finance)
• Criterion:
 You should only invest in businesses which have a
PEG Ratio less than or equal to 1
PEG Ratio =
𝐏/𝐄 𝐑𝐚𝐭𝐢𝐨
𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐝 𝐄𝐏𝐒 𝐆𝐫𝐨𝐰𝐭𝐡 𝐑𝐚𝐭𝐞
≤1
#11 CRITERION
 INTRINSIC VALUE 
• Criterion:
 When the Intrinsic Value is greater than the
Current Market Price, the stock is undervalued
 When the Intrinsic Value is lower than the
Current Market Price, the stock is overvalued
#11 CRITERION
 INTRINSIC VALUE (cont.) 
• Intrinsic Value Calculation Steps:
 Step 1: Find Needed Financial Figures for Calculations
 Step 2: Calculate the Discount Rate (WACC)
 Step 3: Calculate the Discounted Free Cash Flows
 Step 4: Calculate the Present Value of 10-Year Free
Cash Flow
 Step 5: Calculate the Intrinsic Value
 Step 6: Compare Intrinsic Value with Current Market
Value
 Review the Complete Guide on How to Calculate the
Intrinsic Value (Supplemental Material)
#11 CRITERION
 INTRINSIC VALUE (cont.) 
• Using the Intrinsic Value Calculator
 Easy to Use and Implement
 No complex financial calculations
 Everything is automatic
 You only need to add some appropriate figures, you
will have your Intrinsic Value in less than 3 seconds
 Awesome!
INTRINSIC VALUE CALCULATOR

Lastest Version v2.0
Ticker Symbol SYMBOL
Current Share Price $92.56 Stock Beta 0.96
Market Cap $105,540 Million Free Cash Flow $3,408 Million
Number of Shares Outstanding 1,140 Million Long-term EPS Growth Rate 17.09%
Short-term Debt $0 Million Market Risk Premium 5.75%
Long-term Debt $1,495 Million Risk Free Rate 2.24%
Total Liabilities $8,332 Million Interest Rate 2.92%
Total Cash & Cash Equivalents $4,207 Million Income Tax Rate 26.68%
Stock Evaluation Overvalued

Investment Consideration Strong Sell INTRINSIC VALUE $45.17
Wealthy Education © 2015
#12 CRITERION
 INSIDER ACTION 
• Detect the potential problem by paying close attention to
the company’s insider action
• If the insiders are selling a large number of company’s
stocks, there may be a problem with the business, so the
insiders tend to sell their holdings before the price drops
• Criterion:
 You should only invest when the insiders are
currently holding and buying more stocks
Insider Action
Wealthy Education
THANK YOU!

Wealthy Education
VALUE INVESTING

MODULE 3: BUILDING YOUR INVESTMENT PORTFOLIO
DISCLAIMER
THANK YOU!
Hello friends,
Congratulations! You’ve completed the Module 3 – Building

Your Own Investment Portfolio. This is a learning note that
we’ve prepared for you. It includes all key information in the
lectures. You can take it away and revise the course from
anywhere, on any device and at anytime you want.
Best regards,
THE POWER OF INVESTING
• Investing is truly essential for everyone of us
• You can apply the strategy learned from this course to
pick stocks and invest your money
• You can possibly generate 15-25% from your stocks
because the strategy focuses on picking the businesses
which have a high earnings potential as well as a strong
financial performance
• Let your money compound to become a big fortune
WHEN TO BUY & WHEN TO SELL
• You should only invest in businesses which meet our

stock picking criteria
• You can sell your stocks if you find another investment
which has a higher earnings potential
• Immediately sell your stocks when they are overvalued
HOW MANY
STOCKS SHOULD YOU OWN?
Investments < 10
• The number of investments depends on your investing

skills and experience
• At a beginner level, you should not hold more than 10
different stocks
• If you are not experienced yet, don’t try to use financial
leverage (margin) because that’s more risky
LOW RISK
INVESTMENT PORTFORLIO
• Low-risk Investment Portfolio

 10% Bank Deposit (Security)
 40% Index Funds ( Investing 101 Course )
 25% Business Stocks ( this course )
 25% Income Stocks (Dividend Stocks, REITs)
 Diversify to Lower Your Risks
• Remember the Stock Sector Rotation Strategy
Wealthy Education
THANK YOU!


Financial Cource

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Financial Cource

Hochgeladen von

Copyright:

Verfügbare Formate

Wealthy Education

Learn More, Live Better!

THE COMPLETE VALUE INVESTING COURSE

Congratulations! You’ve completed the Module 1 –

• When talking about the balance sheet, you should

• Assets are what the company owns

Total Assets = Total Liabilities

• Accounts Receivable are recorded on your company’s

• Accounts Payable are recorded on your company’s

Cash is the most LIQUID asset!

More Inventories = More Holding Costs!

• Only need to remember the Income Statement Formula

𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 𝐚𝐟𝐭𝐞𝐫 𝐓𝐚𝐱𝐞𝐬

𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞 𝐚𝐟𝐭𝐞𝐫 𝐓𝐚𝐱𝐞𝐬 $𝟏𝟔,𝟗𝟕𝟓

• There are three main components which are presented

FOR MORE INFORMATION:

THE COMPLETE VALUE INVESTING COURSE

Congratulations! You’ve completed the Module 2 – 12

Don’t Try to Predict the Market!

(Upturn Economy) (Downturn Economy)

• Understanding the stock market sector rotation is very

• You can find the Net Income figure on the company’s

• You can find the Sales Revenue figure on the company’s

• You can find the Operating Cash Flow figure on the

• You can find the Earnings Per Share figure on the

• You can find the ROE ratio on some investment

• You can find the Free Cash Flow figure on some

You need to have a vision!

• You should spend your time reading the company’s

INTRINSIC VALUE CALCULATOR

Stock Evaluation Overvalued

Wealthy Education © 2015

FOR MORE INFORMATION:

THE COMPLETE VALUE INVESTING COURSE

Congratulations! You’ve completed the Module 3 – Building

• You should only invest in businesses which meet our

• The number of investments depends on your investing

• Low-risk Investment Portfolio

FOR MORE INFORMATION:

Das könnte Ihnen auch gefallen