Reading and understanding stocks by The Buffettology Workbook
In recent years, we have been seeing a lot of information about asset management on the TV or Internet. “Though I am interested in asset management, how do I do?” With that in mind, we searched for ‘investment’ on the internet and most of what is returned is just advertising which is selling us, “The investment is very lucrative.” We start to think that any investment, we can make big profits easily.
In fact, how many people can make profits from their investment without any knowledge? Some people use the advice of banks or security companies, and they may be getting good results. Unfortunately, my result was different. What I learned from my mistake was,” Don’t chase sweet deals that I don’t understand.”
Banks and securities company will bring sweet deals to us, and they will get profits from service charges that we paid. No matter how much money we lose, even though they apologized rarely, they never take responsibility for the results. When it comes to investment, we easily forget the ironclad rule,”I must manage my assets by myself”, and tend to lack study. If the less the buyer is studying, that’ll play right into the seller’s hand.
I decided I do my investment by myself 6 years ago. I read a lot of books about stock investment and I attended various seminars. I bought some stocks at my decision, then I had experience painful failures and glad achievements. And I understood my invest stance little by little. The stocks holding period is various from super short time, that is called day trader, to long term that we hold for the rest of my life. I tried various trades, I found the way of investing holding period for me is middle to long term. I found the method of choosing stock that was right for me was the buffettology workbook.
Even if people who isn’t interested in Stocks, they may have heard the name of Warren Buffett before. Warren Buffett was born in 1930, he is 90 years old this year. And he is the largest shareholder, chairman and CEO of the Berkshire Hathaway Inc. that is the largest holding company in the world. Also, he is the famous person as the best active investors in the world.
The stocks which he holds get attention every year, and a lot of people and companies refer. Buffett indicator, is calculated by dividing the total value of all stocks market and by the gross domestic product, is a famous.
The buffettology workbook is method of find blue-chips stocks based on the financial statements in the past 10 years. It was hard work to read financial statements and calculate each numerical value at first, however I have been continuing for 5years, I feel that I gradually understand to the point of choosing stocks. When we want to understand each index, I recommend calculating by ourselves. On the other hand, some people may be not good at calculating or doesn’t have enough time. So, I decided to open the buffettology workbook that I calculated by myself for myself.
Though I publish the stocks of Japan, the United States, and New Zealand, I am only interested in these stocks, not all of the stocks.
It is standard published month is Japan stocks are between June to July, the United States stocks are March to April, and New Zealand stocks are August to September.
【 Publication contents 】
Company Name
Stock Code
The end of the fiscal period
Industry type
Company Overview
Periods: It is based in the past 10 years, however if in the case of the company has not been 10 years, it is published from the company was established. And in the case of I couldn’t research the financial statement, it is published the periods that I researched.
〈 Number of the entire period 〉
They have * mark, it is published the average too.
Net income
Total shareholders’ equity (Net asset)
Number of outstanding shares of common stock (Shares outstanding)
Dividend
Stock price high and low
EPS（Earnings Per Share）*
ROE（Return on Equity）*
BPS（Book-value Per Share）*
PBR（Price Book-value Ratio）*
PER（Price Earnings Ratio）*
Payout ratio*
〈 Current term information 〉
The number of the stock issuance that increased and decreased for during the period
Term debt
The necessary years for pay back the term debt with net income
The stock price at the day of calculating
Cash flow: Operating CF, Investment CF, Financial CF
Capital ratio
Current ratio
Quick assete ratio
Fixed ratio
Fixed long term conformity rate
〈 Future expectation 〉
Expected growth rate of the shareholders’ equity
Expected BPS of 10 years later
Expected EPS of 10 years later
Expected stock price -average of 10 years later
Expected stock price — highest of 10 years later
Expected stock price -lowest of 10 years later
Expected rate of return of 10 years later
Some people said, it is difficult to understand the best time to buy from the buffettology workbook. However, if our reading comprehension improve, we can see what we can’t see. Further if you already choose the stocks that you want to buy, and when share prices plummeted on the whole of stock market, you can handle it without lose your way.
As I mentioned, calculating by myself is more understanding the buffettology workbook than only checking numerical values. If you couldn’t find your favorite or curious stocks data on my articles, please choose calculating by yourself instead of contacting me.
Reference books and website
Japanese stocks: Tokyo Keizai
America stocks: SEC.gov
New Zealand stocks: New Zealand Companies Office
You can check Financial Statement each company website. And it is helpful the information date was provided by securities companies. When I check American stocks, I mostly use the numbers provided by Rakuten Securities. Sometimes it is happened the numbers ae different from a financial statement, such as shares outstanding.
Notes:
I publish only information that I researched and calculated. I deliberately don’t publish about explaining each numerical value, blue-chips stocks standard, and methods of calculation. Publishing data mistakes or it is different result from others sometimes, those are not certain.
This articles purpose is not to recommend specific stocks or soliciting to buy shares. Even if you invest in some stocks after referring to this data, I take no responsibility for any disadvantageous and problem occurs. Please make all final decisions and investments under your own responsibility.
After understanding the above contents, please enjoy the buffettology workbook.
