THE 4 PILLARS OF INVESTING Fundamentals Module 1

The 4 Pillars Of Investing Fundamentals Module 1-Free PDF

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The 4 Pillars of Investing,A transcription of,FUNDAMENTALS. MODULE 1 2 3 4, Hello and welcome to Basic Fundamental Analysis It is so good to be with you As you know my. name s Andy and you and I are gonna have a fantastic time in this field of study There s so much. to learn and we re gonna bite off a big chunk of it today I ll tell you what This thing is packed. with information and we re gonna learn so many new words so many different vocabulary You. will see the world differently after this training is complete I ll tell you that So relax kick back. I know we sent you a pdf like a manual you can kinda follow fill in some blanks things like that. But I ll tell you what you ll have access to this more than once Just kick back you know you can. retake this and fill in your notes later My advice to people is to just soak it in the first time and. repetition s great You can do it over and over and over again. So what are we gonna cover Well a lot Among a lot of things we re gonna talk about how to. value something Price is what you pay value s what you get So when you pay for stock what. do you get Why do some people pay 300 a share for one and others only want to buy a penny. stock What are you getting in return for this How do you even know what a good deal is and. how to find them So we re gonna go through valuation for sure We re also gonna analyze stocks. In fact if you have some stocks currently we can show you how to analyze them If you don t we. get some practices ones And we re gonna show you how to do a fundamental analysis on your. stocks Very cool very fun We re going to use the computer to search for strong companies. Arthur Levitt former Chairman of the SEC pretty good guy He said this Our generation should. be the most informed generation in the history of the capital markets And the ease of this. technology shouldn t be an excuse to do less It s an opportunity it s a mandate to do more learn. more achieve more as individuals as a country I think that s pretty close to what he said So. we re gonna do what he said We re gonna use the computer and leverage that And boy if you. don t know how to use the computer well then ask your kids They ll walk you through it right. Nah it s gonna be easy it s gonna be fun So we use the computer to search for strong companies. Vocabulary I encourage everyone to get an accountant an attorney financial advisors planners. The 4 Pillars of Investing Fundamentals Module 1,Tanner Training LLC All rights reserved. brokers you know all these easy to make lots of money when I got a team around me right So. we re gonna build a team and it was amazing how much easier it was to communicate with this. team as I worked on my vocabulary Same s true for you It ll be easier to see things like the Wall. Street Journal easier to watch CNBC because there s so much terminology thrown around in the. world of wealth and finance that the more vocabulary you and I learn the better off we are We. wanna know what we re talking about so we re gonna do that for sure. You and I we re gonna discover how fundamentals relate to things like debt You know we ll look. at a balance sheet and a liability column that s a debt Expenses sometimes there s a payment. on debt And we invest all over the world so we gotta know about currency a little bit Inflation s. gonna be a concern We re gonna spend actually a great deal early on on this topic I think it s. pertinent to our day not a lot of people understand how it works so you and I we re gonna. understand how it works that s for sure Also gotta find out how to set up criteria Now let me. tell you when I first started set out and made the decision I m gonna learn how to invest gonna. get some training I thought when I was finished with my training I d have this sixth sense a gut. feeling and I d be able to just have a feel for investing Doesn t work that way it s actually much. better All investing is is setting criteria and finding investments that fit that criteria and then. you manage risk as you go along That s all it is Learn how to buy stuff get some cash lot of fun. So tons tons more I don t have room on just one outline slide to do all we re gonna do But before. we do anything gotta keep it legal I know you want to be protected so do I So let s protect. ourselves and do the legal thing Important legal disclaimer when you invest in securities stocks. options all the stuff we talk about that involves risk Did you know that I think you did And so. look here s how we ll do it If you decide to invest in some stuff that s your choice If I invest in. stuff that ll be my choice I might own some of the stuff that we talk about okay maybe maybe. not But I don t want you to construe that as like a recommendation for a specific security or even. a vehicle or even a style What I am doing here what I think is best for you and I in this medium. is let s just focus on our education learning new words learning criteria and let s not construe. this into advice consulting and stuff like that Hey I think you get the message Investing is risky. This is for grownups whole reason we want to get some education so we can mitigate some of the. risk that s out there I think you get it It s for grownups right You got it. So let s begin by talking about your journey And I m gonna take you through this journey and I. love doing it My goal when I set this out is I wanted a program that could take people and show. them the way to go from A to Z and I love being a part of that especially at the beginning So I see. a lot of people what I call in Phase Zero This is my continuum you might have gone through this. if not this will be important If you have it s great for review So there are so many that invest. The 4 Pillars of Investing Fundamentals Module 1,Tanner Training LLC All rights reserved. blindly and so they have to trust someone else with everything They re kinda hands off they re. stuck in this 401K that s not going anywhere these mutual funds that they just say Hey advisor. you drive the ship And they don t ever have any involvement in those conversations They don t. ever have any ability to hold those guys as accountable as they might because they don t know how. to talk to them They re kind of at their mercy And I see people with little or no financial education. in investing Now that doesn t make sense to me Does that make sense to you Do we want to invest. in things we don t understand That might be a good rule to learn right now Should we invest in. things that we don t understand Boy that doesn t sound like that s very smart because then I have. to rely on others I m taking a risk Do they know what they re doing Maybe maybe not. So let s make sure we know what we re doing and hop into Phase One The first phase is. awareness There might be people they might not know there s an airplane or that an airplane. exists So the first thing we have to do is say Yeah there is an airplane It does exist And so we. start to learn the strategies here and we start working on that vocabulary I m really gonna hit. that hard And we re gonna learn about context how do you think How do you approach this. stuff So to learn that there is something you can do differently is the first step to kind of be. aware of what you don t know yet There s things you don t know and things you do and we need. to know there s some things we haven t learned about yet So we re gonna do four classes The first. four classes we re gonna help you get more and more aware of what could be done Of course if. you find out there is a plane you might want to fly that plane You gotta be competent and that s. where you start learning very very specific stuff A lot more involved at the competence level. And the classes we ll do there are much more advanced Matter of fact that s when the rules get. specific and the details, You also get to select your style Maybe you want to trade the Forex maybe you want to be like me.
and trade options and things like that So you re gonna select your style at this stage and really. get it down So you take the written test as a pilot and now you know how to fly a plane right. Wrong You gotta take some time in the plane and practice You ve gotta be proficient And that s. the final phase no money s made unless you were good at what you did and you can t just pass the. written test to be a pilot You ve gotta get in the car and actually show that you can fly and land and. deal with weather and under pressure and all that cool stuff So the education continuum takes. people from awareness competence proficiency If you will just go at a nice steady pace don t go. too slow takes too much time But do a nice steady pace and go through your basic classes enroll. in your advanced classes get your men on your market labs in where you re doing it for real in. the market labs Hey I ll tell you what next thing you know you re trading stock man You ve got a. passive income that you feel pretty confident in So that s the education continuum. The 4 Pillars of Investing Fundamentals Module 1,Tanner Training LLC All rights reserved. We re gonna start with awareness phase This is your first class And there are four things. we re going to study This is not like college where you ve gotta study history and you ve got an. economics class and a geology class and a chemistry class math class literature class and all. these other classes No no no there s four areas that you re gonna study Everything that s done. fits in just four simple areas I call them the four pillars of investing and they will support you If. you have support from an education with these four pillars you ll be strong So the first one that s. today s topic fundamental analysis strength in an entity How strong is this entity We re talking. about risk Is there risk involved Are they weak are they strong Are they valuable Great way to. assess whether it s valuable fundamental analysis, Technical analysis strength of the market It s different we ll talk about that next time though. don t want to take up all our time talking about technicals We re gonna do fundamentals You. can t control fundamentals and technicals but you can choose your cash flow strategy That s why. you re able to make money every month right That s why you re able to do it And things change. so you ve gotta manage the risk And if you nail those four you work hard on those four you. dedicate yourself to those four boy you re gonna have a strong education supporting you. So fundamental analysis what is it Well let s get the pen out start writing stuff down here The. income statement well let s talk about that That s the first half of things The income statement. is pretty much money coming in to money going out just like you do in your life with the. checkbook Write a check that s money out Make a deposit that s money in If we take the income. and we subtract the expenses we get what s called a cash flow And some cash flows are positive. and some cash flows are negative And we would like to have a positive cash flow wouldn t we So. basically you take your income subtract your expenses see if that number s positive or negative. Next thing we want to do is wanna look at our asset column And assets is stuff that you own And. liabilities are things that you owe other people Same math though take your assets add em up. subtract your liabilities and that s gonna give you equity And once again you ll either have a. positive number or you ll have a hate negative number And some people call that net worth You. know you say Hey I ve got a negative net worth Better come to Andy and get some help You ve. got a positive net worth great better come to Andy let s make it grow So those are six numbers. aren t they There s actually seven that I m gonna have you use but with those four even you can. get anything you need If you have income expenses assets liabilities you can learn all kinds of. things about this entity It truly is the heart of a fundamental analysis It s the financial statement. So that s awesome, Now let s talk about different types of entities I said this was the strength of an entity well. you re an entity I m an entity we have personal finances I know you have income and assets and. The 4 Pillars of Investing Fundamentals Module 1,Tanner Training LLC All rights reserved. liabilities and expenses Corporations are just the same they spend money and they bring money. in through revenue They buy things that are assets they borrow money they have liabilities. promises they make And guess what The country that you re living in I ve got my country here. the United States but whatever country you live in they have assets liabilities income expenses. So look we can see the strength We can see the value We can see elements of risk by looking. at financial statements from these three types of entities Now what are we trying to do Well. the thing that s a bear about investing we re always trying to tell the future aren t we So we re. gonna learn a little bit you know boy I don t have a crystal ball and boy it s tough to predict the. future So how do we do it, Well the word I like to use instead of predicting the future I say What s most likely It can t be.
100 but what s most likely Hey I d rather do what s most likely than what s least likely that s. for sure So here s one thought on what s most likely The velocity of a body remains constant. unless the body is acted upon by an external force That sounds like that s confusing to me that. sounds like Newton or something like that So what does that really mean Well if something s. Why do some people pay 300 a share for one and others only want to buy a penny stock What are you getting in return for this How do you even know what a good deal is and how to find them So we re gonna go through valuation for sure We re also gonna analyze stocks In fact if you have some stocks currently we can show you how to analyze them If you don t we get some practices

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