Basics by Brochstein - Third Edition 05/03/14 (Public Video)

This is the third edition of a weekly effort to help on with novice education. You can access the first one here and the second one here. Each video will be about 5-10 minutes (this was 10), with the intention of explaining key concepts in plain English, all with the goal of making you a more informed investor. Going forward, send me a note and say "Basics Question" so that I can answer it in the next video. Remember, we have some info posted here too:

http://www.marketfy.com/product/420investor/blog/8...

Today's topics:

DIFFERENT TYPES OF SECURITIES

Stock

oCommon
oPreferred
oWarrants
oOptions

Bond

Convertible Bond


VALUING A STOCK

No single or "right" way
"Net present value of future cash flows"
Traditional metric
oP/E (Price relative to earnings)
oP/S (Price relative to sales)
oP/B (Price relative to book value)

WHAT IS "AVERAGING DOWN"?

Definition: Adding to initial purchase at lower price
Does it work? Sometimes!
When to do it
oFundamental story intact
oTechnicals intact
oCareful with companies with debt

Please let me know if I wasn't "basic" enough and also shoot me a message for topics next week. Also, note that this is a PUBLIC VIDEO

Posted to 420 Investor on May 03, 2014 — 2:05 PM
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