Want to learn basics of Fundamental Analysis

[Lizard]

Hi wbosher,

Here's one of the many older threads on ST re Fundamental Analysis:
http://www.sharetrader.co.nz/showthr...es-for-Good-FA

It makes for an interesting read - the market has changed dramatically since then, so it might be interesting to see if posters then are still using the same method (Westie might have had a bit more luck finding net-nets!)

[percy]

Hi wbosher,

Here's one of the many older threads on ST re Fundamental Analysis:
http://www.sharetrader.co.nz/showthr...es-for-Good-FA

It makes for an interesting read - the market has changed dramatically since then, so it might be interesting to see if posters then are still using the same method (Westie might have had a bit more luck finding net-nets!)

I found it very interesting,and good advice.I do not see that the principles of sound investing has changed.We just get into trouble when we deviate from them!!

[Snoopy]

I read somewhere that trying to use Buffets method of investing isn't necessarily going to work for everyone, simply because of the amount of money he can invest.

He has a huge advantage over someone with only a few thousand $$$, and because he can buy massive amounts of shares in a company, he gets a say in how it runs. Also, he gets better access to company information and a direct relationship with management. All this is something the average Joe Blow like us can only dream of.

Sound like you have been reading Macdunk. Macdunk has never read any Buffett books so has no idea what is in them. While Warren has more money than us, the use of his methods does not require a big budget as Macdunk seems to think. Indeed in many ways the less cash you have to more investment opportunities you can take up that make a difference to your portfolio.

SNOOPY

[peat]

...am thinking about learning about the basics of FA during this time.
I only really want to know the basics at this stage since I use TA primarily, so don't want to be reading through a 400 page book or anything like that. If anyone can help me out, that would be very much appreciated.

http://financialedge.investopedia.co...-Tell-You.aspx

[wbosher]

Hi guys, long time no chat. Life is starting to return to normal after having our second child about 5 months ago, so I'm looking at getting back into the game soon, with a longer term outlook rather than short/medium term trading.

I've bought Colin Nicholson's "Building wealth in the stockmarket", and I'm about half way through. So far it's a bloody good read, and very well written IMO.

He uses a combination of TA and (basic) FA to make investment decisions, and it looks to me like a fairly sound way to go about it. Part of his criteria for picking stocks is that the P/E ratio and the Div Yield must meet certain conditions, he runs scans to achieve this on the ASX.

I'm interested in just investing in the NZX at this early stage, but am unable to find a way to run this sort of scan on the NZX. The scan for the TA requirements is easy, but I just can't seem to find a way to scan for P/E and Div Yield.

Can anyone help?

[shasta]

Hi guys, long time no chat. Life is starting to return to normal after having our second child about 5 months ago, so I'm looking at getting back into the game soon, with a longer term outlook rather than short/medium term trading.

I've bought Colin Nicholson's "Building wealth in the stockmarket", and I'm about half way through. So far it's a bloody good read, and very well written IMO.

He uses a combination of TA and (basic) FA to make investment decisions, and it looks to me like a fairly sound way to go about it. Part of his criteria for picking stocks is that the P/E ratio and the Div Yield must meet certain conditions, he runs scans to achieve this on the ASX.

I'm interested in just investing in the NZX at this early stage, but am unable to find a way to run this sort of scan on the NZX. The scan for the TA requirements is easy, but I just can't seem to find a way to scan for P/E and Div Yield.

Can anyone help?

For ASX stocks
http://www.afrsmartinvestor.com/tables.aspx

For NZX stocks, the nzx.com site does have historical P/E ratios on individual companies. but these are based on the last published figures

Im not aware of any site that covers NZX stocks like AFR Smart Investor does for ASX stocks, so it might be a manual task, but theres not that many companies that pay dividends (the Herald* in the weekend has a brief run down on top yields/highest & lowest P/E, not sure thats all you want)

* Could be a Sunday paper, im not 100% sure

I would recommend you also read Chris Nicholson's "The Agressive Investor" a great read, also combining TA & FA

[wbosher]

I would recommend you also read Chris Nicholson's "The Agressive Investor" a great read, also combining TA & FA

Thanks for tha shasta, looks like it will be a manual task. Good thing the NZX isn't all that big!

"The Agressive Investor" is no longer in print, and has been replaced by this book (both books written by the same author ). Apparently it's very similar, just more up to date examples etc...

This book is also combining TA & FA and would use pretty much the same criteria as Colin would have been used in "The Agressive Investor".

[Lizard]

Hi Wbosher,

You can subscribe to the Market Analysis database and get a few different criteria to sort by. I've used it quite a bit over the years, although at $144 for 6 months (minimum), it is starting to look a little expensive next to other info sources. Of course, it only takes one good pick to more than pay for that...

My last sub from 2 years ago will expire this month, so not sure if I will be using it again. However, being able to sort by both typical fundamental criteria like P/E, ROE and Pr/NTA alongside Relative Strength rating and insider buying is a handy combo.

(PS: The database doesn't work well on all browsers, as I can't get it to operate from Safari, but okay with Firefox or Chrome)

[wbosher]

I'm starting back with a very small amount of money, so will be trying to do as much on the cheap (or free) as possible. I went through the entire NZX last night manually looking at P/E and Div Yield specifically, and it only took about an hour, so I will probably continue to do it this way untill I have more $$$.

If in future I start investing on the ASX again, I will definately not be doing that manually!.

Until I get some experience, I will be using the techniques in the book almost to the letter and it is suprisingly simple.

[OldRider]

wbosher: I have used for some years a formula, originated with Buffet or Munger I believe, which I think might provide
what you require. It is my first filter, and not too difficult or time consuming to use in a spreadsheet, if you have a data source,
has found me some good investments. Wouldn't be surprised though if it has few passes for NZX.

Google "CGVI" there was some discussion a few years back on an Australian forum "SHARESGURU", I think at least some
of the posts are still there together with a bit of information, google this as well.