When someone begins their journey in financial education and trading the financial markets, they are often attracted to leveraged asset classes such as Futures, Forex, and Options due to their capacity to generate a short term income. However, trading short-term should only be done using one's "risk money", so what should an investor do with the rest of their net worth, their "wealth bucket"? This is where long-term investing using Fundamental Analysis comes in.
Fundamental analysis is the skill of assessing business quality through the study of Financial Statements (The Balance Sheet, The Income Statement, and the Cash Flow Statement). It is also the study of a company's Competitive Advantage, Quality of Management, and Risk Factors.
Value Investing teaches us how to distinguish superior companies from inferior ones (Quantitatively and Qualitatively) and how to determine their true worth (which is often different from their stock price).
The Value Investor believes behind every stock there is a company that sells goods and services, and that the price of a stock (over the long run) is closely related to the profitability and operational performance of the business.
The Value Investor who's also familiar with Core Strategy possesses a key advantage, he/she can combine to two types of analysis (Fundamental and Technical) to increase the odds of profitability post entry.
This class will teach investors how to screen through the thousands of public companies for strong candidates, how to further analyze these candidates Quantitatively and Qualitatively, and how to calculate their Intrinsic Value using the Discounted Cash Flow model.
This course will cover:
- The importance of investing in Stocks to build long-term wealth
- Value Investing Terminology
- How to read and interpret Financial Statements of public companies
- How to analyze Financial Statements horizontally (through time) and vertically (Ratio Analysis)
- Screening through the thousands of public companies to narrow the universe of candidates
- Valuing a company using the Discounted Cash Flow Valuation model
- Qualitative analysis of a company's management, competitive advantage, and risk factors
- Combining Fundamental Analysis with Technical Analysis to improve on the entry point
This course is designed ideally for students who have completed OTA's Core Strategy class
Core Strategy course is strongly recommended.
Approx. 6 hours of live instruction & 4, 1-hour live sessions delivered bi-monthly for 8 weeks post-class
6-hour class when purchased includes 4, 1-hour application sessions accessible from the same course.
Live Online class with Application Sessions