2012 franklin stock 1
DESCRIPTION
Personal view regarding value investmentTRANSCRIPT
Get rich with NYSE
2012 - Presentation
Just to be clear• I don’t sell you anything
• It is a personal view
• Resources needed• discipline• computer / internet connection• 10 000 $• 10 years
Ins p
iratio
n
Stock Exchange
I don’t want to work for my money
I want my money to work for me
Ins p
iratio
n
False1. You must be an expert
2. You need a lot of money
3. You have to diversify
4. You’ll lose all your money
5. Winning equals the risk
6. Only the insiders wins
7. You can’t beat the market
8. Mutual Funds … …
Ins p
iratio
n
2. Business
3. Price
4. Purchase
5. End
1. IOwner - Investor3 characteristics
Employee
Owner
Free -Professional
Investortime
money I
3 Characteristics
• Focus on 1 business
• Knows the business
• Employee / Fire the management
I
Essence
I am sure
I’ll make money
because
I purchase
an excellent business
at an attractive price
I
1. I
3. Price
4.
Purchase
5. End
2. BusinessExcellent BusinessDebtDividends
Excellent Business
1. Interest – R.O.Capital
2. Value of the Business
3. Profit
4. Sales
5. Cash
10%
Bu
si ne
ss
Debt
Dividends
Bu
si ne
ss
1. I
2. Business
4.
Purchase
5. End
3. PriceRight ValuePrice / ValueRight Discount
Right Value
1. Estimate Profit of 2022
2. Estimate P/E of 2022
3. Calculate Business Value of 2022
4. Calculate Business Value of 2012
5. Calculate Right Value/share
Pr ice
Price / Value
Right Discount
Attractive Price = 50% of Value
Pr ice
1. I
2. Business
3. Price
5. End
4. PurchaseThe BrokerHow much & When Trailing-Stop
How we purchase
How much we purchase
10% of daily average
4 monthly equally installments
Pu
rc ha
s e
The Broker
Sell Trailing Stop at 5% / ..$
Buy
Sell limit
Sell stop
Pu
rc ha
s e
1. I
2. Business
3. Price
4.
Purchase5. EndAdding money Accumulation Changing the business
Adding money
year 1 = virtual test
year 2 = test 10 000$
year 3… = add money
En
d
AccumulationStart 10 000 $
Year 1 = 20 149 $ 101%
Year 2 = 34 039 $ 69%
Year 3 = 62 684 $ 84%
Year 4 = 109 961 $ 75% …
4 years 10 000 $ 100 000 $
4 years 100 000 $ 1 000 000 $
8 years 1 000 000 $
En
d
Changing the Business
Change of Managementului
The domain gets worsening
Price becomes too big
The magic 5 numbers
En
d
Happiness
Satisfied
Balanced
Environment• Nature (air, water,…)• Family• Society
Personal Resources
• Time• Energy• Money