How I Research Stocks - Step-by-Step Fundamental Analysis
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- čas přidán 31. 05. 2024
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00:00 - Introduction
02:02 - Screening for ideas
03:09 - Understanding the business
05:51 - Understanding the finances
09:50 - Understanding the strategy
13:00 - Stock Valuation
15:44 - Review and finalize notes
17:11 - Conclusion
Resources (no current affiliation):
- Free Screener: finviz.com/screener.ashx
- Free Data Terminals (some with watchlists/screeners)
- www.tikr.com/
- app.koyfin.com/
- wallmine.com/ (an old sponsor)
- Free Watchlist: www.bloomberg.com/markets/wat...
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DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).
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How I Research Stocks - Step-By-Step Fundamental Analysis
This video made me realize just how outrageous those investment TikToks and internet gurus really are when they talk about investment being easy. It really is a highly-technical job with years of experience required and not something you can do by finding silly "patterns" on a graph in your bedroom. Thank you Bagel, for opening my eyes.
Which is why I'm perfectly content to just throw my money in an ETF and let it ride. I ain't got the time nor the skill to run with the professionals, so why would I think I can beat them at their own game?
@@USMCHolo Which ETF tho? Loads of different funds out there, and that's just one type of fund among many others.
@@ArawnOfAnnwnmarket index funds of course, like QQQ and IVV
@@ArawnOfAnnwn I've had decent success with my 3 fund (Boglehead) portfolio. The three ETF's I currently own are: VTI, BND and VXUS. There are of course different ETF's you can use (like VOO instead of VTI for example).
Either that or you just ignore everything and put your money to VTI and bonds.
I'm legitimately impressed you summarized all that in 20 minutes
Right? Complex
yeah but some of his (great) advice is like "analyze the cash flow" That by itself is like half a college accounting class. So he basically laid out like 1/2 of an MBA courseload and you can go figure it out for yourself =D
No snark intended, I love Plain Bagel, but his advice isn't exactly trivial to absorb
@@IntegralKing yeah I'm studying my PhD in math finance. What impressed me is he was able to talk about it in a way where people who don't know that stuff still learned enough to begin researching it
@@RomanNumural9rip your PhD… not a great area for work. Prove me wrong
@@dirtydan6098 it's great because I want to do research. I'd rather love what I do
“How the bagels are made” 😂😂
How I Research Stocks - Step-By-Step Fundamental Analysis
That made me giggle too
Gotta get that bread
Disappointed no actual bagels were made in this video...😢
(remember they called their baby bagel bite)🤔🤨
Holy shit, FINALLY a video that explains what Analysts/portfolio managers ACTUALLY DO.
You demonstrate just how much work goes into your job beneath the veil, the fact you can do this and run a youtube channel is a testament to your work ethic - thank you Richard
It would be interesting to do a walk-through of this process on a particular stock, just to show how it actually works in practice.
That would be helpful ❤❤❤
You would probably need a 30 hour video
@@alexweitz To go in-depth, yes. But that kind of depth would also involve revealing proprietary information from his employer that he would not want to reveal.
But a basic overview could be done in a normal-length video or short series.
And I wouldn't want one of the very top stocks that gets all the headlines anyway. Something random from the bottom 100 of the S&P 500 or somewhere around there would be ideal.
This is why I love this channel. An actual professional showing how actual research is done. So many people these days say they “researched” something when they really just mean they read what other people said about it on Twitter 😂
Not only is this video informative, it helps put into perspective that my day job isn't really that boring after all
I think it's the opposite, this is fun!
@@fanban2926 it's very cool, but if I had to do it for 8+ hours a day, I would be miserable. But I can see how some people would enjoy it!
curious what u do for work?
@@odomobo ^
@@connordewhirst2332 I maintain order-processing software
This is a really good concise guide on how to do fundamental analysis.
When people say “do your own research”, they never say how to do it. Kudos to you for changing that!
Still prolly one of the best if not the best and most honest information
Yea he is probably the only one left besides how money works
Now make it a series doing a deeper dive into each step!
While I agree, that starts getting into paid content and he'd like a job lol
Martin shkreli
Watch Martin Shkreli do a DCF analysis for more in depth
There's a lot of books. The Swedish Investor channel has u covered. For deep dive into valuation Aswath Damoderan is all free classes!
@@ajp642 I was literally going to suggest Prof. Damodaran, too. Though fair warning, the classes are long, detailed, and sometimes they get boring. But that's the nature of the beast when you really want to learn something, isn't it? It isn't always exciting.
What I appreciate about the bagel:
-He didn’t fall into the honeypots of sponsorships alike FTX or the Scottish lords thing.
When the bagel stays plain without sugarcoat, that is credibility.
whats that about Scottish lords?
@@user-wp5tm2ne3sThe whole "Established Titles" grift
@@user-wp5tm2ne3s Established Titles drama. Iirc you pay them to buy part of land in scotland, then you can call yourself a lord as per scottish culture.
Now that I know for sure how to do analysis real good, I feel even more confident in putting all my money into NVIDIA. Thanks.
Smh
Make sure to leverage so you don't leave any money on the table. It literally cannot go tits up.
Beware confirmation bias
... NVDA has some of the WORST metrics in the semiconductor space. It's so overpriced and growth-oriented I don't know how you got to that conclusion based on this video. I'm not saying it's bad; I'm saying the principles laid out in this video doesn't support your conclusion
@@IntegralKing this guy just ready to “invest” in a large company that just had a big increase which wont sustain
really great info. I think it's also worth pointing out specifically that the important thing is understanding how to evaluate a stock and not just blindly following a method you find online. Too many people just try to copy what they think successful people do without having any idea of what any of it means and seeing it just as abstract numbers. I know you talk about this a lot in other videos.
Yeah. I've found for me looking at valuation first is best since I can then remove a lot of unnecessary contenders for more interesting ones. Like if something is down 99% all time or it's at a 200 PE growing 30%/y then I'll look into it for a very short time and often conclude it's not worth it. Then I don't waste time.
Literally the best CZcams channel I’ve ever watched, should have 1 billion subscribers
I am regretting not investing in Nvidia stocks ever since my wife did. But still grateful i kept money in the money market. With about $200k maturing soon, i plan investing well in it. But then what other stocks should I look into as a newbie to safely grow my money?
Thats when you hire someone to manage your money. You need a (CFP) straight up! personally, I would invest in ETF's and also love investing in individual stocks.
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 28%.
Do you mind sharing info on the adviser who assisted you?
'Natalie Ann Brinkman'. One of the finest portfolio managers in the field also widely recognized. Just research the name. You’d find necessary details to work with and set up an appointment.
Thank you for sharing. it was easy to find her, then I scheduled a phone call with her. She seems proficient considering her résumé.
This is by far the most thorough and comprehensive analysis breakdown I’ve ever seen. Really great job
Excellent video as always Plain Bagel, Im gonna stop right now at the beginning and watch it later.
How do you know if the video is ‘excellent’, if you haven’t watched it?
You better watch it later soon. The algorithm thinks videos that people stop watching at the beginning must be all click bait low quality videos.
@@themoodyteam It was a joke, hope this helps.
@@aglioeoilo please explain the joke. I’ve obvs had (and are still having) a whoosh 💨 moment
This is a great video. Could you apply this formula over a sample company, so we can see an example of how you analyze a stock?
Probably not with the frankness required. I imagine some of the conversations about some stocks are pretty brutal, and would likely just be a headache to have to deal with the PR backlash from said company or fans of the company. Additionally, I think this falls into the category of not giving stock picks.
I hope this is a continuing series , would love to see more of such videos
Cool to see you touch on a bunch of stuff I had during finance classes at uni for valuing a company
loved this !! thank you for summarizing this and sharing the free to use tools
Wow, I really needed this content, I am currently studying Financial Management and I want to work in the field of investment management soon. I have searched and watched a lot of videos to know what the work process is like in this field and all they told are just some broad terms which is hard to understand clearly. I am lucky that I subscribed to this channel and I am now confident in my career knowing what it will be like in the workplace.
Totally agree. Bloom Berg excel plug in has saved me so much time. All I have to do is input the ticker and all of the data I am interested in is organized instantly. (Instead of spending 10 minutes inputting different commands into bloomberg)
0:53. I REALLY appreciate you starting with the statistics of how strong the S&P500. Back when I knew absolutely nothing about investing, all I saw were channels from people going over what to do. Had I known that it would be extremely difficult to beat the S&P500, I wouldn't have spent all that time researching company reports.
This video is so golden! Thank you for your dedication.
Thank you. I learned a lot. I will share this channel to my friends.
Really impressive summary - went in my permanent save watch-list for all the useful information. IMHO though, I think this level of analysis can present the risk of analysis paralysis for the somebody interested in picking stocks. It's often been said by the like of Buffet and Lynch that temperament plays a hugely important role - can do all the analysis in the world but if somebody doesn't have the nerve they'll end up selling the moment there's a slight downturn. In my own experience I've found learning and expanding my understanding makes it much easier to not worry. Perfect example was last year and the tech sell-off. I understood why a profitless Uber would be losing market share but Microsoft made no sense at all. Sure interest rates were climbing and again companies operating off debt will be in trouble but Microsoft sits on more loot than Smaug and has a credit rating better than the US Government. So I wasn't worried in the slightest over the tech stock price slide, I knew much of my portfolio would be coming back.
Thank you brother. I do like how you cover current events and your original content but some practical know how from you is valuable. I know I still have to do the legwork but this helps. Wishing you continued success.
Hope you make a full 40 minute series.
Love you brother❤
Amazing Amazing presentation !Thank you! Please Keep it coming where you can make it easier and easier for many new investors to understand the importance of researching a stock before getting into it.
Thanks for sharing! That's a lot of great info crammed into 20 minutes!
What an absolute unit of a bagel!
Thank you so much for making this! These type of videos are great.
Exactly the kind of video I asked for! THANK YOU!
Thank you so much.
I will now rest easier buying indexes. Up until this point I just felt lazy. But with all the work I am doing there is simply no space for all this(which I wanted to do if I were to go into buying solo stocks).
So many people say "fundamentals", but no one has gone this much into it, making 10 minute surface level videos for 20second segments of this one and never getting anywhere.
Great video! I would add that the stock analysis on the short run is highly driven by market dynamics, so a stochastic model is needed (like montecarlo or black-scholes-merton). The process in this video is better for the stock's asymptotic convergence, an ECM origination or to better value the company, but for stock transactions, modeling is pivotal.
This is gold, thank you very much for sharing this knowledge.
Thank you so much Richard, always quality content and this video is a fantastic insight I was keen on learning about.
Great educational content, thanks a lot!
Would like to watch one about selecting etf as there are a lot of them atm.
FINALLY, I HAVE BEEN WAAAAITING FOR THIS. HUGE Thank You
I really enjoyed this video, very focused on the topic and not drifting off topic for humor sake.
Awesome stuff, you gained a new subscriber
what I love about this channel is that it guides instead of directing me
Thanks Richard. Solid & constructive information. Love the channel.
Yes!!! You really are one of the CZcamsrs whose opinion I respect the most on investing and I'm really interested to know how you think on the matter and what is your strategy!
Wow! This is so valuable and helpful! Thank you for sharing!
Thank you so much, even though I'm young I'll cherish this knowledge you have given us🎉
Great summary, very informative.
Something I have learnt very quickly after starting to tip my toes in the world of financial investments is that doing it right is really complicated, and if it was as easy as some "gurus" claim it to be, then everyone would be filthy rich.
Yes thank you for this video! It's pure gold!
Thank you so much for this video! Very, very helpful!
This is a really useful and unique video, thanks dear Bagel
This is a great video!!!! Thank you for sharing your process. Very informative!
Great video exactly the kind of detailed dive I was looking for
Great video! Thank you very much for the very useful and detailed information you have shared!!!
Awesome video! Extremely detailed and concise .... Plain Bagel would be permit to make this video a video series breaking down what you can and the process
Thanks it was very useful for me as it highlighted to me some processes that I was missing
Curious about the execution side of things. How do you size up a position, do you DCA into it or buy-in over time using technicals/quant indicators, or do you lump-sum all of the allocation. And is that done in-house or via S&T/block trades. When would you go for derivatives, debt instruments, or warrants over just the equity/shares, etc. You could definitely add many parts to this and do a video series.
Been wondering this. Good topic. Thank you!
Really appreciate this video, great to compare research approaches. Thanks!
Thank you so much for sharing the resources, such as EDGAR! It would be amazing if you could do a video doing an overview of open source informational resources that are available and reliable
thanks really much for this step by step guide
I know next to nothing about stocks or how to analyze them. But man I swear I could teach a class after this. Not one word you said was wasted. And there is something about your voice that’s easy to listen to. As a auditory learner this is profoundly helpful
best finance channel. although i hold 80 percent index but for that 20 percent i like to watch these things
THIS is the content I've been wanting
When I was in University and worked as an Intern, there is one lesson I learned investing/trading is about 90% research 10% execution
Very Damodaran approach
Well done! Bring on the bond analysis video!
So stoked to watch this!
Such a valuable video! Thank you so much 🙏
Excellent as always. (And humble too.) Thx.
Thank you for this; it's convinced me to stay in ETFs and Mutual funds
Thank you for sharing with regular people a path to better investing.
Thank you for doing this really helps!!
Great video, it would be interesting a video comparing pros and cons of fundamental analysis and quantitative investing especially for bigger account that can afford to diversify in hundreds of equity (in this case I see several advantages of the quant investing in particular for the less experienced investors)
Amazing content as always!
Like I said before best financial educational content on you tube.
Thank you. I learned so much from you & George Gammon/Rebel Capitalist.
great content, Richard. thank you.
Its me again cody ready for another learnings from your guidethanks for your efforts
I’ve been waiting for this one!
Very interesting process, thanks for sharing !
This is amazing, thank you for sharing!
I was looking for a tutorial on making plain bagels, but this video was interesting too
I thought this was one of your best videos so far :)
Thank you for the great video!
This is the first CZcamsr who has a background beat in his intro, has clear glasses and a head full of hair but nonetheless spits real financial knowledge not talk about chilling on a beach, straight up knowledge.
Thanks for sharing this, insightful!
great analysis, thankyou i am still learning in the Nusantara fx community class
investment requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myselfMay I ask which investments are good? I've been looking at a few different ones but want others' opinions as well.
Thanks for the efforts you put in these. I found her and i leave her a message i await a response.
This is extremely useful!
Thank you SO MUCH for authentic, realistic information. For a future video could you provide examples of ideal investments and problematic investments based off of your criterion?
I've been watching this channel for a while every now and then when CZcams recommends it, but this video actually made me subscribe, nice job!
I have two questions I think could make a couple new videos:
1 - After the research, once the valuation becomes attractive, how do you think about position sizing? You mentioned dollar cost averaging within an acceptable valuation range, but how big are you willing to make the new position in a portfolio and how big are you allowing it to grow? And how do you decide the appropriate size for different stocks?
2 - What makes you think about selling? Maybe position sizing (previous question) has a role, but what about extreme overvaluation, fundamental changes in the company and the need to raise cash for an even more attractive opprtunity? Or do you see other situations where selling is necessary?
Thanks!
I appreciate the subscription! Sizing is usually pretty easy; we’ll either take a full position (a set amount based on the portfolio size that leaves room for further buying up to a limit), or half a position if we think the stock may come down further but want to hedge our exposure. As for selling, that’s a tough one - we usually give a stock at least three years and then evaluate how it’s performing. I’ve trimmed when valuation became stretched but don’t often sell on valuation alone. The biggest thing I consider is whether management followed through on promises, or risks of permanent impairment (eg fundamental changes in the business/industry)
greatest video of all time
Fantastic video, thanks!
Really appreciate this video, thanks a lot
Incredible man. Really makes you think about all of these day-traders and 'buy my course' types of guys. Do they even analyze wtf they're buying? Thanks for the vid 🐻
Thank you for this vid!
My favorite video of yours so far :)
Always top tier videos.