MUST HAVE ONLINE TOOLS FOR INVESTING (FOR BEGINNERS)

 ONLINE TOOLS FOR FINANCIAL RESEARCH/STOCK ANALYSIS

SOME OF THE BEST WEBSITES FOR FINANCIAL RESEARCH, AND STOCK ANALYSIS ARE MORNINGSTAR, YAHOO FINANCE FOR TECHNICAL CHARTS AND ANALYST GROWTH RATE, MSN MONEY FOR HISTORICAL PE, WHILE FOR PAID WEBSITES THE BEST TOOL IS GURUFOCUS FOR VALUE RESEARCH.

......................................................................................................................................................

WHEN I WAS STARTING TO READ ABOUT WARREN BUFFETT STYLE OF VALUE INVESTING, I WAS REALLY EXCITED AND EAGER TO APPLY THE CONCEPTS I LEARNED BY ANALYZING FINANCIAL STATEMENTS, FINDING UNDERVALUED STOCKS IN THE MARKET AND THINGS LIKE TECHNICAL ANALYSIS. HOWEVER I HAD NO IDEA WHICH TOOLS TO USE. WHICH SITES HAD THE BEST INFORMATION, EASIEST TO NAVIGATE, DOES IT EVEN SHOW STOCK MARKETS OF MY COUNTRY ETC. BUT THROUGH A LOT OF INTERNET NAVIGATION AND RESEARCH THESE ARE MY BEST RECOMMENDED TOOLS FOR NOT ONLY FINANCIAL STATEMENTS, BUT OTHER USEFUL RESOURCES.

THIS POST IS GOING TO BE THE ABSOLUTE NECESSARY FREE ONLINE TOOLS FOR A BEGINNING STOCK INVESTOR. ALL THE TOOLS ARE FREE.

MORNING STAR

THIS IS OBVIOUSLY THE FIRST MOST IMPORTANT QUESTION, WHERE DO I GET THE FINANCIAL STATEMENTS FROM?

THE ANSWER TO THIS PROBLEM IS ONLY ONE WEBSITE: https://www.morningstar.com/

THIS SITE IS PROBABLY THE BEST SITE THAT I HAVE FOUND SO FAR TO GET AN IDEA OF COMPANY FINANCIAL STATE. THE REASON IS SIMPLE, MORNING STAR PROVIDE THE MOST IMPORTANT INFORMATION ON A COMPANY FOR 10 YEARS. EVERYTHING FROM BOOK VALUE TO NET INCOME TO FREE CASH FLOW PER SHARE. IT ALSO PROVIDES YEAR TO YEAR, 3 YEAR,5 YEAR,10 YEAR GROWTH RATES FOR REVENUE, EPS ETC. IT ALSO PROVIDES FINANCIAL HEALTH RATIOS LIKE DEBT TO EQUITY RATIO AND CURRENT RATIO EVERYTHING THAT A VALUE INVESTOR NEED IS IN PROVIDED IN A COMPACT FORM.

BELOW ARE THE STEPS TO ACCESS THIS INFORMATION:

1. GO TO https://www.morningstar.com/

2. IN THE TOP LEFT CORNER THERE IS A SEARCH BOX(SEARCH QUOTES AND SITE), PUT THE NAME OF THE STOCK. I AM USING APPLE STOCK AS EXAMPLE.

3. YOU WILL BE TAKEN TO DIFFERENT PAGE WITH APPLE INC STOCK PAGE. IN THIS PAGE YOU WILL SEE A SECTION NAMED KEY RATIO (CHECK IMAGE BELOW). CLICK ON IT

4. WHEN YOU CLICK THE KEY RATIO YOU WILL GET SOME WELL KNOW KEY RATIO LIKE PE RATIO DEBT TO EQUITY RATIO. BELOW THIS INFORMATION WILL BE ANOTHER OPTION NAMED "SEE FULL KEY RATIO DATA". YOU HAVE TO CLICK ON IT.(SEE IMAGE BELOW)

5. AND THIS IS IT. THIS IS WHERE THE GOLD IS. LITERALLY EVERY PIECE OF INFORMATION THAT YOU COULD WANT IS HERE.

NOW IF YOU WERE ACTUALLY INVESTING IN A COMPANY I WOULD RECOMMENDED YOU USE THE ANNUAL REPORTS OF THE COMPANY TO CHECK THIS DATA. THE GREAT THING ABOUT THIS IS THAT YOU CAN JUST COPY PASTE THE INFORMATION TO EXCEL DOCUMENT WHICH MANY SITE DO NOT ALLOW.

YAHOO FINANCE:

NOW I KNOW WHAT YOU MIGHT BE THINKING YAHOO DOESN’T EVEN PROVIDE 10 YEAR FINANCIAL DATA, AND THIS IS CORRECT BUT YAHOO DOES PROVIDE TWO THINGS THAT COULD BE USEFUL TO BEGINNERS.

THESE 2 THINGS ARE:

1. ANALYST GROWTH ESTIMATES

2. TECHNICAL CHARTS

THE FIRST ONE IS ANALYST GROWTH ESTIMATES. YAHOO HAS A ENTIRE SECTION WHERE IT PROVIDES ANALYST ESTIMATE GROWTH FOR COMPANY. IT ALSO PROVIDES EXPECTED REVENUE GROWTH, EPS GROWTH.

TO FIND OUT THE GROWTH RATE OF A COMPANY YOU FOLLOW THE STEPS BELOW:

1. GO TO https://finance.yahoo.com

2. SEARCH YOUR STOCK FROM QUOTE LOOKUP SEARCH BOX. AFTER THE PAGE FOR YOUR STOCK OPENS, CLICK ON THE ANALYSIS TAB.

3. IN THE ANALYSIS SECTION YOU WILL SEE ALL THE GROWTH RATES, FOR REVENUE, EARNING ETC.BUT IF YOU WISH TO SEE THE NEXT 5 YEAR ESTIMATED GROWTH RATE OF THE COMPANY YOU HAVE TO GO TO THE LAST SECTION OF GROWTH ESTIMATES. SEE THE IMAGE FOR CLARIFICATION.

THIS IS THE WHAT THE ANALYST PREDICT IS THE GROWTH RATE OF APPLE FOR NEXT FIVE YEAR PER YEAR . ALL THIS INFORMATION FROM ANALYST IS FINE BUT MY RECOMMENDATION IS NOT BLINDLY FOLLOW THIS GROWTH RATE, AND DO YOUR OWN RESEARCH ON THE COMPANY. AFTER YOU HAVE DONE THE RESEARCH YOU CAN CHECK THIS. IF YOUR GROWTH AND THE ANALYST GROWTH RATE IS CLOSE (AS USUALLY HAPPENED WITH ME WHEN I WAS STARTING), THIS WILL GIVES YOU A LOT OF CONFIDENCE.

NEXT IS THE TECHNICAL CHARTS.

THERE ARE MANY TECHNICAL CHARTS THAT CAN HELP YOU UNDERSTAND THE MOVEMENT OF MONEY IN THE MARKETS. THE BEST PLACE TO GET A FREE CHART ONLINE IN MY OPINION IS YAHOO FINANCE.

1. TO ACCESS THE CHARTS, YOU SEARCH YOUR DESIRED COMPANY ON YAHOO FINANCE. AND GO TO THE CHARTS SECTION.

2. THIS GIVES YOU CHARTS. YOU CAN CUSTOMIZE ALL THE CHARTS, YOU CAN CHOOSE MACD, STOCHASTIC OR RSI AND MANY MORE.

I AM NOT SURE IF THERE ARE ANY BETTER TECHNICAL CHARTS BUT, I HAVE BEEN USING YAHOO FINANCE CHARTS TO STUDY TECHNICAL ANALYSIS.

MSN MONEY:

MSN MONEY MIGHT NOT BE THE MOST IMPRESSIVE WEBSITE TO RESEARCH STOCK BUT THERE IS ONE PIECE OF INFORMATION THAT IS THERE THAT MIGHT HELP YOU.

THAT INFORMATION IS THE 5 YEAR HISTORICAL PE RATIO OF THE COMPANY. WHY IS THIS NUMBER IMPORTANT? WELL THIS NUMBER TELLS YOU THE EXCITEMENT ABOUT A PARTICULAR COMPANY IN THE STOCK MARKET, HOW MUCH ARE PEOPLE WILLING TO PAY FOR THIS STOCK. IF A HISTORICAL PE OF A COMPANY HAS BEEN HIGH THAT MEANS PEOPLE ARE WILLING TO PAY MORE MONEY FOR THAT COMPANY, WHEREAS IF THE HISTORICAL PE IS LOW THAT MEANS THAT PEOPLE ARE NOT WILLING TO PAY A PREMIUM FOR THAT COMPANY. SUPPOSE YOU LIKE A COMPANY, YOUR RESEARCH TELLS YOU THAT THE COMPANY IS WONDERFUL THE COMPANY IS WORTH $100. YOU SEE THAT THE COMPANY CURRENT PRICE IS $75 AND THE COMPANY PAYS NO DIVIDEND. YOU KNOW THAT PRICE IS LOWER THAT THE INTRINSIC VALUE BUT THEN YOU LOOK AT THE HISTORICAL PE AND SEE THE 5 YEAR PE FOR THE COMPANY IS 10, WHICH IS QUITE LOW FOR A DECENT COMPANY. WHAT THIS TELLS YOU IS THAT EVEN THOUGH THE COMPANY IS GREAT, THE MARKET IS NOT VERY EXCITED ABOUT THE COMPANY AND YOU HAVE TO TAKE THAT INTO ACCOUNT. IT IS POSSIBLE THAT THE COMPANY MAY STAY AT ABOUT THE SAME PRICE AS IT IS NOW, AND YOU GET NO DIVIDEND. BUT USUALLY IF A COMPANY IS TRULY GREAT, THE MARKET WILL SOONER OR LATER REALIZE AND MAKE THE CORRECTION TO THE PRICE BUT IT MAY TAKE YEARS FOR THAT TO HAPPEN, AND YOU HAVE TO BE OKAY WITH THAT.

NEXT IS TO SEE HOW TO ACCESS HISTORICAL PE:

1. GO TO https://www.msn.com/en-us/money

2. THEN GO TO ANALYSIS SECTION.

3. IN THE PRICE RATIO SECTION YOU WILL SEE THE CURRENT PE RATIO. THE 5 YEAR HIGH AND 5 YEAR LOW PE RATIO.

4. THIS IS THE APPLE STOCK. WE SEE THERE IS A LARGE DIFFERENCE BETWEEN 5 YEAR HIGH AND LOW PE RATIO. BUT WE CAN EASILY SAY THAT PEOPLE ARE WILLING TO PAY A PREMIUM FOR A STOCK LIKE APPLE.

TO TAKE THE AVERAGE HISTORICAL PE RATIO JUST TAKE THE AVERAGE OF 5 YEAR HIGH AND LOW PE RATIO.

DATAROMA

HAVE YOU EVER THOUGHT IF ONLY WARREN BUFFETT COULD TELL ME WHICH STOCKS TO INVEST IN. WELL WARREN BUFFETT WILL NOT TELL YOU BUT WE HAVE SOMETHING CLOSE. THAT SOMETHING IS DATAROMA. WHENEVER BIG INVESTORS LIKE BUFFETT INVEST IN SOMETHING, THEY HAVE TO FOLLOW SEC GUIDELINES AND REVEAL PUBLICLY SOME OF THEIR INVESTMENTS. DATAROMA GIVES YOU ACCESS TO NOT ONLY BUFFETT BUT OTHER INVESTORS LIKE MOHNISH PABRAI, CHARLIE MUNGER, GUY SPIER , BILL ACKMAN , SETH KLARMAN AND MANY MORE.

HOWEVER THE DATA WILL BE FOR EACH QUARTER SO YOU HAVE TO DEAL WITH THE DELAY OF INFORMATION. WARREN BUFFETT HAS FREQUENTLY SAID THAT IF YOU CAN COPY MY INVESTMENTS, GO AHEAD, HE INFACT ENCOURAGES IT, HOWEVER EVEN IF YOU COPY BUFFETT YOU MUST STILL BE CAREFUL AS BUFFETT MIGHT CHANGE HIS POSITION IF HE REALIZES THERE'S A PROBLEM BEFORE YOU KNOW.

WEBSITE - https://www.dataroma.com/m/home.php

PHIL TOWN RULE #1 INVESTING 

WELL IF YOU ARE HERE YOU MIGHT HAVE ALREADY HEARD ABOUT THIS MAN. HE HAS A YOUTUBE CHANNEL NAMED PHIL TOWN RULE #1 INVESTING. AND WHILE THE CHANNEL IS GREAT I WILL TALK ABOUT HIS WEB SITE. THE MOST USEFUL ASPECT OF THE WEBSITE IS BESIDES THE WEBINAR IS THE TOOLBOX. THE TOOLBOX ON HIS WEBSITE IS A FINANCIAL ANALYSIS TOOLBOX. IF YOU READ PHIL TOWN’S BOOK YOU WILL KNOW ABOUT THE FOUR BIG NUMBERS, THE GROWTH RATES. THIS TOOLBOX PROVIDES ALL THE 10 YEAR FINANCIAL DATA AND CALCULATES THE BIG 4 GROWTH RATES FOR YOU. IN ADDITION THERE IS CALCULATOR TO CALCULATE THE INTRINSIC VALUE FOR THE COMPANY. AND YES THE TOOLBOX IS NOT FREE AND YOU HAVE TO PAY FOR IT, BUT THERE IS A TRIAL PERIOD OF 30 DAYS WHERE YOU PROVIDE YOUR EMAIL TO ACCESS THE TOOLBOX FOR 30 DAYS. NOW, YOU MIGHT NOT BE ABLE TO ANALYZE A LOT OF STOCKS IN THIS TIME BUT YOU CAN LOOK AT THE NUMBERS AND TRY TO LEARN AS MUCH AS POSSIBLE BY LOOKING AT NUMBERS FOR DIFFERENT STOCKS. AND IF YOU ACTUALLY LIKE THE TOOLBOX YOU CAN ACTUALLY JUST BUY THE TOOLBOX.

WEBSITE - https://ruleoneinvesting.com

VALUE INVESTORS PODCAST

THIS IS ANOTHER GREAT RESOURCE FOR LEARNING MORE ABOUT STOCKS. PRESTON PYSH AND STIG BRODERSEN IN THEIR WEBSITE TALK TO A NEW GUEST IN THEIR PODCAST AND TALK ABOUT DIFFERENT STRATERGIES OF INVESTING , OVERALL YOU GET A GREAT IDEA ABOUT THE STOCK MARKET SITUTATION AND BEHAVIOUR. THEY HAVE A PODCAST EVERY WEEK ON THEIR WEBSITE AND ON YOUTUBE AS WELL. THEY TALK ABOUT STOCKS, REAL ESTATE, BILLIONAIRE CASE STUDY AND EVEN BITCOIN. BUT OTHER THAN THIS,  THEIR CHANNEL HAS A LOT OF RESOURCES SUCH AS WARREN BUFFETT INVESTING COURSE, VIDEOS OF BUFFET, ASSET ALLOCATION COURSE ETC.

WEBSITE - https://www.theinvestorspodcast.com

SO THESE ARE SOME OF THE TOOLS I LIKE TO USE FOR MY RESEARCH AND LEARNING ABOUT STOCKS, AND I HOPE THESE TOOLS WILL HELP AND GUIDE YOU TOO.

LAST BUT NOT THE LEAST,

GURUFOCUS.

YES, I HAD TOO INCLUDE THIS, HONESTLY THIS IS PROBABLY THE BEST SITE THAT HAS ALL THE FINANCIAL INFORMATION YOU CAN EVER NEED FOR ANY STOCK. THE GREAT THING ABOUT THIS WEBSITE IS THAT THE FOUNDER OF THE WEBSITE CHARKIE TIAN HAS A PHD IN PHYSICS, HE FOUND BEN GRAHAM AND WARREN BUFFETT AND MADE A WEBSITE THAT IS DEDICATED SOLELY FOR VALUE RESEARCH. THERE IS ABUNDANCE OF INFORMATION ON THIS WEBSITE. OTHER THAN THIS THERE'S NOT MUCH TO SAY ABOUT THIS WEBSITE, JUST VISIT THIS WEBSITE AND YOU WILL UNDERSTAND. THE CATCH IS THAT IT IS NOT CHEAP AROUND $449/YEAR. 

WEBSITE -  https://www.gurufocus.com