fundamental analysis workshop series session one – introduction to stock investing
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Fundamental Analysis Workshop Series Session One – Introduction to Stock Investing. DISCLOSURES & DISCLAIMERS. This research material has been prepared by NUS Invest. - PowerPoint PPT PresentationTRANSCRIPT
Fundamental Analysis Workshop Series
Session One – Introduction to Stock Investing
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
DISCLOSURES & DISCLAIMERSThis research material has been prepared by NUS Invest.
NUS Invest specifically prohibits the redistribution of this material in whole or in part without the
written permission of NUS Invest.
The research officer(s) primarily responsible for the content of this research material, in whole or
in part, certifies that their views are accurately expressed and they will not receive direct or
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research material.
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No representation or warranty, either expressed or implied, is provided in relation to the
accuracy, completeness or reliability of the information contained herein. The research material
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opinions expressed in this research material are subject to change without notice.
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Agenda
• Why Invest in Equities?• How to Start?• Which Broker?• Fees Involved• Using the Internet (Resources)
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
#STORYOFMYLIFE
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
ABOUT MEAfter NS, Before NUS…
Citibank Retail Banking Sales Executive (1 Year)
• Credit Cards• Loans• Depository Products
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
ABOUT MEFascinated about the Financial Markets
Started off with Technical Analysis
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
ABOUT MEInternships, Internships and More Internships
Equities Investment Unit (Operations)
Corporate Finance (Investment Banking) Division – Spring into Banking Programme
DBS Vickers Securities (USA, New York)- Asian Equities Sales Desk
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
DBS Vickers Securities (USA, New York)- Asian Equities Sales Desk
ABOUT MEInternships, Internships and More Internships
Equities Investment Unit (Operations)
Corporate Finance (Investment Banking) Division – Spring into Banking Programme
Started to appreciate Fundamental Analysis:Became interested in FA strategies such as:
- Event Driven- Long-Short Equity
ABOUT MECame back from New York, joined NUS Invest:
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
ABOUT MECame back from New York, joined NUS Invest:• NUS Invest Research Analyst, FA Team Lead
WHAT I REALLY DOWHAT I THINK I DO
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
ABOUT MECame back from New York, joined NUS Invest:• NUS Invest Research Analyst, FA Team Lead
WHAT I REALLY DOWHAT I THINK I DO
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
SYLLABUSSEMESTER 2
WK 2 • Introduction to Stock Investing
WK 3 • Art of Reading Annual Reports
WK 4• Picking the Right Stocks(Part I) – Top Down Analysis
WK 5 • Picking the Right Stocks (Part II) – Bottom Up Analysis
WK 6 • Picking the Right Stocks (Part III) – Dividend Investing
RECESS WEEK
WK 7 • Portfolio Management for the Retail Investor
WK 8 • Case Study 1
WK 9 • Case Study 2
WK 10 • Case Study 2
WK 11 • Traders Interview
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
SCHEDULE
• TUESDAY 6:15 – 7:30 pm
• It would help to bring your laptop
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
INVESTING V.S. TRADING
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Are You An Investor or a Trader?
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Investing V.S. TradingInvesting
Time Horizon
Trading
Methodology
Effort
Risk Appetite
• Months? Years? • Intraday: Less than a day• Swing Trading: Within a week
• Driven by fundamentals• Top-Down Analysis• Bottom-Up Analysis• Peer Comparisons
• Event driven (Trade news)• Technical Analysis (Chart reading)
• One-off • Time consuming daily affair
• Varies; typically lower • Requires proper money/risk management
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
DIFFERENCES BETWEEN FUNDAMENTAL & TECHNICAL ANALYSIS
FUNDAMENTAL ANALYSIS
• Focuses on the economic forces of Demand & Supply that causes prices to move
• Finding the intrinsic value of the market/asset
• Characteristics of a company is employed in the analysis
• Effects of economic factors on a stock such as earning reports, cash flow, etc are concerned
• Analysis using past data of Demand & Supply
• Study of historical graphs is stressed• Identify a trend at a relatively early
stage & ride on that trend until the weight of the evidence shows or proves that the trend has reversed
• Deals in probabilities, never certainties
TECHNICAL ANALYSIS
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
HOW TO START?
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
CHOOSING A BROKERREQUIRES INVESTING/TRADING EXPERIENCE
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
RESOURCES
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
CHART NEXUS
• http://www.chartnexus.com/• Free End-of-Day (EOD) daily updates and 3
years of historical data
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
CHART NEXUS
• http://www.chartnexus.com/• Free End-of-Day (EOD) daily updates and 3
years of historical data
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Bloomberg App
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Bloomberg App
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Bloomberg App
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Bloomberg App
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
OSIRIS/ORIANA (NUS Library Database)
• Synthesizes financial statements into Excel
spreadsheets, Tables, Charts and Diagrams for more
intuitive viewing
• Industry analysis reports
• Peer comparisons
• Key financial ratios
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
WHAT TO EXPECTSEMESTER 2
WK 2 • Introduction to Stock Investing
WK 3 • Art of Reading Annual Reports
WK 4• Picking the Right Stocks(Part I) – Top Down Analysis
WK 5 • Picking the Right Stocks (Part II) – Bottom Up Analysis
WK 6 • Picking the Right Stocks (Part III) – Dividend Investing
RECESS WEEK
WK 7 • Portfolio Management for the Retail Investor
WK 8 • Case Study 1
WK 9 • Case Study 2
WK 10 • Case Study 2
WK 11 • Traders Interview
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
Q & A
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION
THANK YOU!
INVESTING VS TRADING
GETTINGSTARTED RESOURCES Q & AINTRODUCTION