Using this Blog
www.csinvesting.org has an eclectic mix of posts on valuation, competitive analysis and accounting. Use the search box in the upper right corner for relevant posts on subjects that interest you. For example, if you want to learn more about EBITDA as a cash flow metric then type those words into the search box and you will see several posts like this one: Placing EBITDA into perspective: http://wp.me/p1PgpH-yS.
Also, there are over 60 books, many case studies and 30 videos on investing in the VALUE VAULT. Email me at Aldridge56@aol.com with (only) VALUE VAULT in the subject line. Within 48 hours, I will do my best to send you the keys to the cloud-based folder so you can download anything you might like to study. No reply? Just email me a reminder. I know this blog needs better organization and all the information can be overwhelming for new investors. The trick to developing skill is to cut through all the noise to focus on the key issues that will drive the success of the investment. Practice reading original 10-Ks and 10-Qs and Proxies. Look at profitability, margins, trends, ownership, and the history of the industry. Take and keep notes. What are you learning?
A self-taught investor with excellent examples http://www.gannonandhoangoninvesting.com/
Another for beginners: http://www.oldschoolvalue.com/blog/
|APPLY, APPLYBut YOU must apply what you read to the actual world. Practice.
Investing is something that you DO. OK, you are a beginner and you have read a basic book
on accounting (Go to the folder called BOOKS in the VALUE VAULT and choose
How to Read a Financial Statement. Next ask yourself,
“Would I want to invest in the cruise ship industry?” (Find out)
“Can I understand what drives profitability? What factors can the
companies control? Is there a better company than the others?” Compare the
two (CCL and RCL -see below) using common-size financial statements to
see trends or indications of strength or weaknesses. Common-size financial statements:
Read through two years of annual reports and proxies for both companies,
noting what you don’t understand–then go look up and research the answers.
Read about the industry BEFORE you read this article (click on link):
Case Study for Beginners Study an Industry Cruise Ships.
Background on Carnival Corporation
CCL_VL CCL_Morn CCL_2011 Annual Report
RCL_VL RCL_Morn RCL_Investor Relations Presentation March 2012
Then read the article and see if you agree or can reverse engineer
what the writer did. I think you will have more fun and make your learning more relevant.
Have a Great Weekend!