For value investing dashboard Inspired by Sean Seah Book -- Gone Fishing with (Warren Buffett)[http://www.aceprofitsacademy.com/wp-content/uploads/2016/09/Gone-Fishing-with-Buffett.pdf]
List of the companies through SP500, Russell, and self inputted
- Getting SP500 stocks info from wikipedia
- Getting russell stocks info
- Adding own list of stocks info
- Find the shareprice by year and the following metrics:
- EPS
- ROE
- ROA
- Long term debt
- Total Income
- Debt to Equity
- Interest Coverage Ratio
- Given list of the companies, find out the feasibility to invest
- Been in market minimal 10 years
- Have the track records (EPS per year)
- Have efficiency (ROE > 15%) -- Net income / shareholder equity
- Determine manipulation (ROA > 7%) -- Net income / Total Asset
- Have small long term debt (Long term debt <5* total income)
- Low Debt to Equity
- Ability to pay interest: (Interest Coverage Ratio >3) -- EBIT / Interest expenses
- Decision making from each company in terms of return rate given the value investing methodology
- Find EPS Annual Compounded Growth Rate
- Estimate EPS 10 years from now
- Estimate stock price 10 years from now (Stock Price EPS * Average PE)
- Determine target by price today based on returns(discount rate 15%/20%)
- Add margin of safety (Safety net 15%)
- Buy if market price is lower than the marginal price
- Sell if market price is higher than the marginal price
- Qualitative Assessment of the companies
- Advantages in business (product differentiation, branding, low price producer, high switching cost, legal barriers to entry)
- Ability of foolhardy management (even a fool can run)
- Avoid price competitive business