How I Pick My Stocks: Investing For Beginners

Описание: I share how I pick stocks to invest in based on the methodologies of legendary investors Warren Buffett and Charlie Munger. Add me on Instagram: michellemarki

These methods are also based on value investors that have followed in Buffett and Munger's footsteps, Phil Town and Danielle Town. I highly recommend their Invested book and Invested podcast so you can learn the specifics of how to pick stocks.

Time Stamps:
0:00 - How I Pick Stocks Intro
2:48 - Charlie Munger's 4 Investing Principles
3:29 - 8 Step Process and 1st Identify Companies
6:33 - 2nd Build A Wish List
7:04 - 3rd Company's Financials
7:26 - 4th Company Reports
8:41 - 5th Business News
9:05 - 6th Complete Charlie's Principles for Yourself
11:37 - 7th Margin of Safety Price
13:36 - 8th Buy If It's On Sale!

It's important to set goals and a promise to yourself that you will set out to achieve your financial dreams. Even though we all want to make money in the stock market, you gotta know there's always risk in investing.

When we invest, our hope and expectation is that our investments will go up in value and in price over time, but I found that it's better to think of it how Buffett puts it: "Rule #1: Never Lose Money. Rule #2: Never Forget Rule #1."

I encourage us to follow Charlie Munger's 4 principles of investing as closely as possible of Business Musts:
M1. Meaning: We are capable of understanding it
M2. Moat: Intrinsic characteristics that give it a durable competitive advantage
M3. Management: with integrity and talent
M4. Margin of Safety (MOS): Buy at a price that makes sense and gives a MOS

We want to buy companies at valuation with a significant discount to what the company is or had been selling for in the market. Then we can buy a stock on sale, ideally at 50% or more. Make sure you keep Charlie's principles in mind as you're going through this investing process I'm outlining.

I wrote out the 8 steps to prepare you for how to invest:
1. Identify companies and industries you might be interested in
2. Start building a Wish List of companies you’re interested in learning more about or buying
3. Check companies’ “Fundamentals” or financial info on GuruFocus or Yahoo Finance
4. Look at companies’ 10-K Annual & 10-Q Quarterly Reports and Gurus’ 13F Filings
5. Choose & read a “newspaper” (online) for business news to keep tabs on your companies
6. Complete Charlie Munger’s 4 Investing Principles before you might buy
7. Calculate companies’ intrinsic value and margin of safety valuations to know buy prices
8. If a company’s stock is on sale, buy and hold forever! Ideally.

Within Step One, if you recall from Charlie's first principle, the companies we identify have to have meaning to us. So I'll talk about one company that has meaning to me: Starbucks!

Step Two is to start building a Wish List of companies.

Step Three: start familiarizing yourself with a company's fundamentals or its financial info.

Step Four: You want to look at and read companies' annual reports that are called 10-K or their quarterly reports called 10-Q as well as check out guru investors' 13F filings with the SEC.

Step Five: Choose and read a "business newspaper." Check articles online about companies and industries you're interested in.

Step Six: You want to finish completely answering Charlie's 4 Principles for yourself. This includes evaluating the moat and management of the company.

Step Seven: This is Charlie's 4th Principle of Margin of Safety. You want to buy a wonderful company at a price that makes sense and gives a MOS.

Step Eight: If a company's stock is on sale, we can buy and hold forever, ideally! So we rest assured we've done everything we can to know what we've invested in.

I summarize Charlie's 4 Ms as they apply to Starbucks to me. Yes, coffee!!! That's what it's all about. I include a few quantitative measures of how management is performing and my margin of safety valuations/prices.

Read the full blog post at: https://www.michellemarki.com/how-i-p...

If you're interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide: https://michellemarki.com/resources/

I look forward to making more investor friends! Please like and subscribe if you learned something or enjoyed my video. Thank you! :)

---
Add me:   / michellemarki  
Check out my Blog: https://michellemarki.com
---

Disclaimers: This content is for entertainment, information, education purposes only. Michelle is not a financial advisor and is not providing financial, investment, trading, tax advice, or recommendations. Please consult with a professional financial advisor with a fiduciary duty and responsibility if you need help in your situation. All trademarks, logos, and brand names belong to their respective owners.

#HowToPickStocks #WarrenBuffett #CharlieMunger