kimberland
Bronze Contributor
User Power
Value/Post Ratio
15%
- Jul 25, 2007
- 822
- 121
Easy answer... start investing now.
You're studying accounting, right?
(BTW... that's my base also)
Take those skills, drag out some financial statements
and start analyzing.
Do a 10 year discounted cash flow,
add the book value of the company
(throwing out any "garbage" like Goodwill),
compare that to the stock price.
Is it a bargain (trading at 50% of the price)?
Is the business strong?
Do you like what the management team is doing?
Then buy.
Even if it is one lot.
Yeah, sure, you'll "lose" money (due to the commissions)
but you're investing in your education.
Think that doesn't apply to your future as an entrepreneur?
Think again.
The same skills are used to buy companies outright.
Do this analysis for a few years and
you'll be able to look at a set of financials
and know immediately whether it is a bargain.
You're studying accounting, right?
(BTW... that's my base also)
Take those skills, drag out some financial statements
and start analyzing.
Do a 10 year discounted cash flow,
add the book value of the company
(throwing out any "garbage" like Goodwill),
compare that to the stock price.
Is it a bargain (trading at 50% of the price)?
Is the business strong?
Do you like what the management team is doing?
Then buy.
Even if it is one lot.
Yeah, sure, you'll "lose" money (due to the commissions)
but you're investing in your education.
Think that doesn't apply to your future as an entrepreneur?
Think again.
The same skills are used to buy companies outright.
Do this analysis for a few years and
you'll be able to look at a set of financials
and know immediately whether it is a bargain.