The Top Signs of a Valuable Business
I’ve been lucky to study companies as a Wall Street analyst for nearly a decade. Here are the 10 signs of a valuable stock!
How to Analyze an Earnings Release
Want to figure out a stock’s reaction after an earnings release? This is how I analyzed earnings releases as a Wall Street analyst. You will learn to analyze a company’s earnings release so you can: Anticipate the stock’s reaction after the release. This will help you identify trade opportunities or make buy/sell decisions for your …
To Beat the Market, Invest in Less
In this article, you’ll learn why concentration is key to higher returns and how to do it safely for your portfolio. Sizing your positions matters just as much as what you pick. Both research and practice have shown that fewer positions are the key to outsized outcomes. It’s not just about taking big positions, which …
Why GameStop’s Stock Exploded from an Investment Perspective
GameStop’s extraordinary rise in 2021 captivated the world’s markets. It marked a new generation’s stock market. The stock of a struggling retailer turned into the beacon of rebellion— the internet generation versus the entrenched elite. The rise rattled the stock market’s clearing systems. It even led to a congressional hearing. Retail investor Keith Gill turned …
Why I Left Wall Street to Teach Investing
My first taste of finance was in Hong Kong, where I grew up. The most successful people were bankers and traders. They had the money for fancy clubs, designer clothes, and swanky apartments. They all spoke with cool confidence, too. Meanwhile, I was teaching SAT prep, taking the bus everywhere, and drinking beers from 7-11 …
How to Research a Stock (Step-by-Step Fundamental Analysis)
In this article, I will show you the steps of fundamental analysis in equity research to analyze a stock. Fundamental analysis is how you turn an observation (this is an interesting company) into an actionable idea (what to do with the stock). I used this exact process when I was an equity research analyst at …
How to Read a Stock’s Financials (Avoid Excessive Risk)
In this article, I will show how to read a stock’s financials so you can avoid excessive financial risk. I’ll show you a simple financial statement analysis with a case study from equity research. What you’ll learn to avoid is the risk of bankruptcy, which will make your investment go to zero. Unfortunately, many individual …
Don’t Mix Fundamentals with Technicals (Why Price ≠ Value)
One of the primary mistakes I've made is mixing trading with investing. This article explains the difference between fundamental (investing) and technical (trading) analysis. Understanding this is important because mixing the two usually leads to avoidable investment losses. You are more likely to pick a great stock when you focus on value.
“What’s Your Top Stock Pick?” How to Identify a Stock Opportunity
Nearly all the best stock ideas share similar characteristics, and this article explains the framework to identify these ideas. Understanding this is important because finding great stock ideas is one of the most valuable skills you can develop. You can reach your financial and career goals faster by learning these investment principles.
Sell-Side Equity Research with Henry Chien (Vol to Valuation)
Austin & Chris sit down with Henry Chien to discuss a sell-side analyst's view on the market, price target anchoring effects, transaction structure on how sell-side gets paid, and break down Henry's personal mental models on investing.