The Basics of Stocks
Interested in stocks but don’t know a whole bunch about them? Stocks & The Stock Market is one of the best guides you will find to start building a savvy knowledge base. Take it as an introduction to four very basic yet foundational concepts of investing in stocks.
- What is a stock: how are companies transformed into pieces of paper and how can you profit from this.
- Types of stocks: not all stock is created equal, some give you more or less rights and some are simply more valuable just because of those rights.
- How do stocks get their value: so what is a company worth? We’ll share how to go about answering this question.
- The purpose of the stock market: it’s not just a game for the rich
Intro to Individual Stock Selection
So you’re no beginner to investing and you want to take it up a notch. Intro to Individual Stock Selection is the go-to starting point to get your feet under you. We’ll cover three key concepts:
- Components of stock selection: how to think about the quantitative factors (the company’s numbers) and qualitative factors (things not directly tied to numbers).
- Valuing a business: what are the three things a company gets its value from.
- Relative valuation: how to actually use tools like the P/E ratio and PEG ratio via a quick case study.
The Power of Diversification
Spreading things out is best, right? Not necessarily… not all diversification is created equal and just buying many different assets for “diversification” isn’t intelligent investing. Truly understanding diversification can help you build the lowest risk portfolio that still leaves upside to beat the market. Consider this your introductory crash course to diversification.
Topics covered:
- What is diversification: we’ll explain the actual value proposition behind not putting all your eggs in one basket.
- Types of risk: not all risk is the same, we’ll explain this and how you can measure it.
- How diversification works: we’ll cover how you can build your own portfolio of stocks not just mutual funds to achieve diversification, including the general number we’d include if it were us.