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20 Lessons (1h 9m)
    • 1. Trailer

    • 2. What are Stocks?

    • 3. Why Invest in Stocks?

    • 4. Why Can You Be Successful Picking Stocks?

    • 5. Understanding Investing Strategies

    • 6. Technical Analysis and Day Trading

    • 7. Growth Investing

    • 8. Mutual Funds and Index Funds

    • 9. Value Investing

    • 10. Net-Nets

    • 11. Greenblatts and Buffetts

    • 12. Sum of the Parts Investing

    • 13. Screening For Stocks

    • 14. Balance Sheet Analysis

    • 15. Income Statement Analysis

    • 16. Cash Flow Statement Analysis

    • 17. Growth and Management Analysis

    • 18. Under Armour in 2009

    • 19. Japan: Nikkie Index in 2012

    • 20. Free Tools and Resources


Project Description

How to Pick Winning Stocks

Preparing to Invest

  1. Completing Unit 1

    Please watch the three video files included in this part of the course. They will give you an introduction to stock investing which will prepare you for the content in later lectures. 

How to Pick Winners

  1. Completing Unit 2

    Please watch the video files included in this part of the course. They will give you an overview of various stock investing strategies which will prepare you for the content in later lectures. 

Types of Value Investing

  1. Completing Unit 3

    Please watch the video files included in this part of the course. They will give you an introduction to three fundamental value investing strategies which will help you to understand the mindset of value investing. It will also give you a strong base heading into the content on stock analysis. 

Steps in Picking a Stock

  1. Completing Unit 4

    Please watch the video files included in this part of the course. This is the most important section of the entire course. It will give you the tools you will need to effectively find and purchase stocks. 

Case Studies in Stock Picking

  1. Completing Unit 5

    Please watch the two case study videos. These case studies will help to refine what you learned in previous unites and help to further your understanding of value investing. 

Free Resources and Further Reading

  1. Completing Unit 6

    Many of the tools in this unit are free and you can start using them right away. Please view the video to get a list of further reading you can do to enhance the skills you've picked up in this course. 

Additional Resources

  • By no means is this list of definitions comprehensive. I have included free resources in the appendix for further definitions and explanations of common financial terms.

    Bulls & Bears: Bulls and Bears refer to if an investor feels confident or pessimistic about a stock or the stock market. Bulls are optimistic. They are courageous and charge ahead buying shares. Bears are pessimistic. They would rather hibernate and want to sell shares.

    Bid & Ask: Due to the auction format of the stock market, these refer to the prices you can buy and sell at. A bid is the highest price a buyer will pay. An ask is the lowest price a seller will sell. These help to form stock prices.

    Capital: It refers to financial resources available for use, it can be used as a synonym for assets.

    Basis Point (BPS): A unit that is equal to 1/100th of 1%. If you are 100 inches tall, 1/100 of an inch is a basis point of your height. Basis points are tiny units of measurement but are important for tracking bonds yields since they tend to change less than 1% on a given trading day.

    Liquidity: The ability to turn an asset into cash and use that cash. This helps to measure how easy it is for a company to pay off its short term obligations. It can be important if a firm suddenly experiences an earnings decrease.

    Balance Sheet: Summarizes a company's assets, liabilities and shareholder's equity at a specific point in time. This helps to illustrate what a company owns, what it owes and how much money owners have invested.

    Assets: Possessions having present or future economic value to the owner. This can be cash, inventory and factories.

    Liabilities: Refers to an actual or potential financial obligation. Usually in the form of debt

    Stock Holder’s Equity: The book value of the company, it refers the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings.

    Accounts Receivable: Money owed by customers to the business, when you buy an item on credit, you enter onto the firm’s accounts receivable balance

    Depreciation: How much of an assets value has been used. For example if you buy a computer that will last 5 years, you use 20% of its value each year.

    Amortization: Similar to depreciation except that it refers to intangible assets. The value of a patent is the standard example of an asset being amortized.

    Current Assets: All assets which are expect to be converted into cash within the next year, usually liquid.

    Working Capital: (Current Assets/Current Liabilities) This measures whether a company has enough short term assets to cover its short term debts

    Accounts Payable: A short term debt owed by the company

    Current Liabilities: Short term debts or obligations, the firm should be able to cover these with cash on hand (working capital)

    Long Term Liabilities: Liabilities that will be due after one year, it can be covered by future earnings since there is plenty of time to prepare to pay them.

    Book Value: A corporation's net worth measured by all assets minus liabilities.

    Retained Earnings: Earnings held by the firm to reinvest in operations or pay debt, these funds have been withheld instead of being paid out as dividends.

    Days of Sales Outstanding: Average numbers of days it takes a firm to collect the revenue it gets after completing a sale.

    Days of Inventory Outstanding: Average number of days it takes to convert inventory into a sale.

    Income Statement: It measures a company's financial performance for a period of time. It shows how the business incurs its revenues and expenses through both operating and non-operating activities

    COGS: Cost of Goods sold, measures costs directly related to the sale of the company’s product

    SG&A: The costs to the firm of operation, less direct than COGS, ie payroll costs, R&D and marketing costs

    EBITDA: Net income with interest, taxes, depreciation and amortization added back. It is important because it removes differences in financing and accounting decision so firms can be more evenly compared

    EBIT: Earnings before interest and taxes, similar to EBITDA it is important for comparing firms without the effects of different financial set ups between firms

    Cash Flow Statement: Shows cash inflows and outflows for a period of time

    Operating Cash Flows: Cash generated by normal business operations, helps to show a clearer picture of how profitable a firm is in cash production

    Investing Cash Flows: Cash flows related to purchase or sale of long term assets, For instance, cash flows related to firm buildings and equipment

    Financing Cash Flows: Cash flows between firm, owners and creditors, it tracks funds related to providing finances for the firm’s operations

    Futures: Contracts for the future delivery of securities or commodities at a set price and at a specified time

    Options: Rights to buy (call) or sell (put) a fixed amount of stock at a specified price within a specified amount of time.

    Call: The right to buy an asset or stock at a given price within a window of time

    Put: The right to buy an asset or stock at a given price within a window of time

    Index: A collection of stocks usually used to mimic an entire market or segment. For example the S&P 500 is used to track the entire US market through its 500 largest public firms.

    Index Fund: A mutual fund designed to match or track an index

    Mutual Fund: A pool of money actively managed by a portfolio manager. It classified by type of stocks held

    Hedge Fund: Professionally managed pool of money, like a mutual fund but are subject to fewer regulations. They are less regulated because they cater to more “sophisticated” investors (they have more money to invest).

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