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The bible of value investing. This is part three of my summary of Security Analysis – the legacy of Benjamin Graham and David Dodd to emerging investors. Here we will discuss the stock market and the stock market – how to find undervalued stocks.
Playlist of the complete security analysis series: http://bit.ly/2vNzkw7
Top 5 Takeaways from Benjamin Graham's Security Analysis:
00:00 Introduction
01:08 1. Find undervalued stocks
04:13 2. Comparative analysis
09:37 3. Investing in stocks is looking for weakness
12:42 p.m. 4. Buy stocks worth less than net current assets
2:42 p.m. 5. Timing the market
TL; DW:
– Use comparative analysis or review individual company reports to find individual stocks that are undervalued.
– When doing benchmarking, remember that only obvious disparities matter, and that it is primarily a tool for quickly narrowing down the number of companies considered for investment.
– The future is above all something to guard against – eliminate weak companies
– Stocks worth less than net current assets can be real bargains when it comes to investing, but you'll usually only find them in tough financial conditions.
– It is difficult to time the market. A comprehensive dollar-cost averaging strategy seems hard to beat.
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to achieve this: invest in the stock market, become a stock trader, invest in real estate, or why not become an entrepreneur? But whether you're interested in how to invest in stocks or investment strategies for creating passive income with rental properties, I hope I can offer you a solution (or at least an idea) here. Warren Buffett – the greatest investor of our time – says you should fill your mind with competing ideas and then see what makes sense to you. This channel aims to fill your mind with these ideas. And in the process – upgrade your money-making toolkit.
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