Henry Chien – Learn fundamental investing from 10 years of Wall St. Experience

You get 10 years of Wall St. research experience summarized into simple concepts, tools, and tactics for you to apply NOW in today’s markets.

Saves you the pain of 100+ hours of financial courses (or 100+ hour work weeks in finance) or hours sorting through free internet material.

Get a summary of 10 years of Wall St. knowledge in five hours in this book.

This is the only guide you will need for stock investing.

What You’ll Learn In Learn fundamental investing

Introduction: Investing as a practice of change – why do stocks move like that??

• Focus on rates of change (i.e. growth y/y)
• Importance of forward guidance and estimates
• Second derivative (improving / slowing) as key factor
• Come up with a “thesis” and model an outcome
• How to incorporate risk, time, and price*

Fundamentals: Valuing a business: Growth vs. Asset value 

• Model of an investment thesis
• Critical factor and value driver
• Valuation using comps and history
• Use of discount rates and earnings / cash flow
• Estimate rates of return

Business models – how understand where a business is going?

• Type of product and market
• Value to customer (driver)
• Vision of management team
• Understand ability scale
• Source of margin

Basic big picture and macro awareness

• Economic cycles and types of environments (growth / inflation)
• Impact of central banks (rate policy)
• Key paradigms for factors and sectors

Basic Practice (how Wall St. analysts do it):

• Finding information and where to look
• Reading an earnings release
• How to interpret a financial statement
• How to understand debt and other sources of capital
• Types of business models and their valuations
• Using comp tables and multiples to value companies
• Interpreting invest ownership of stocks
• Practice of building a model and comps

Intermediate Practice (how Wall St. analysts do it):

• What is reflected in price and expectations?
• Catalysts or trading events and where to look for them
• How to evaluate a sector for investing?
• Supply / demand analysis
• Competitive structure and moats
• Value vs. middlemen > structure
• Real TAM > value to investor
• Adoption curves and penetration
• S-curves and timing inflections
• Secular and multi-year changes
• Cyclicality and timing valuation paradigms

Advanced investing (behavioral and hedge fund tactics)

• Evaluating risk of an investment
• Patterns for assessment management
• Interpreting volatility in liquid markets
• Sources of “edge”
• Set up for a long/short equity catalyst
• Opportunities in risk positioning
• Value investing with catalysts
• Shorting flaws in a thesis

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