Before buying into a company, i should do my homework to read the company's quarterly & Annual reports to derive my Intrinsic Value of the company for 4 years ahead.
How do i do that?
(1) I am buying this company for it falls into which category of my Investing?
1. Value Growth?
2. Deep Value?
3. Dividend?
(2) Which industry does this company falls into?
1. Food & Beverages?
2. Consumer Products?
3. Manufacturing?
4. Semi-conductor?
5. Information Technology?
6. etc
(3) What is the industrial PE for the past 10 years?
(4) What is the average PE for her peers?
(5) How is the historical Revenue and the projected growth going 3 - 4 years forward?
(6) How is the historical Profit and Profit Margin and the projected growth going 3 - 4 years forward?
(7) How is the historical Cash Flow and the projected growth going 3 - 4 years forward?
(8) How is the historical Dividend yield and how many % of the Net Profit be converted into dividend and growth, and the projected growth going 3 - 4 years forward?
(9) What is historical ROE for the past 5 years and the projected ROE growth going 3 -4 years forward?
(10) What is the intrinsic value of the company going 3 -4 years forward?
One of the way to calculate the intrinsic value is to use Buffet Intrinsic Calculator from:
buffettsbooks.com/howtoinvestinstocks/course2/stocks/intrinsic-value-calculator.html#sthash.jEhBZTtD.dpbs
(11) At how many % discounted Intrinsic Value should i divest my shares?
(12) Divest partially or fully?
(13) Different category of Investing will have different Assessment of Selling Strategy.
(14) Will i buy back the share once divested?
(15) Will i average down when it drops to certain %?
(16) How many will i average down and how much cash i am holding?
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