PRE-REGISTER NOW TO FINALLY ACHIEVE FINANCIAL FREEDOM: https://r.oprimorico.com.br/0087f3bddd - - - - - - - Recently, in several videos on the channel, I presented my investment methodology to you, which consists of the following diversification: - 25% BR Stocks - 25% US Stocks - 25% FIIs - 25% Caixa Today, what we are going to do is open one of these quadrants and talk about how to invest in stocks! More specifically, how I analyze and choose the BEST SHARES and BEST INVESTMENTS for the long term! So... In the case of stocks, I divide my analysis into: - Profitability/Return - Debt - Growth - Corporate Governance - Price Profitability/Return ROE, or Return on Equity, is probably the indicator you are most familiar with: we divide the company's profit by its net equity, and thus we have an idea, in %, of how much of the company's shareholders' capital was transformed into profit by the company. ROIC has the same purpose: to calculate the profitability on capital. However, in the case of ROIC, in addition to considering the partners' capital, we also consider third-party capital in the middle. The idea then becomes to understand what profitability the company achieves with all the capital it has. Debt Here, we have to understand whether the company has the capacity to honor its debts. With this in mind, I look at 2 main indicators: 1) Current Liquidity This is a simplified way of checking the company's capacity to pay its short-term obligations. You basically take all of the company's short-term assets and divide them by its short-term liabilities. If it's greater than 1, the company has enough assets to pay its short-term liabilities, and if it's less than 1, it doesn't. Obviously, in this context, the higher the number, the better. 2) Dry Liquidity Dry liquidity is very similar to current liquidity, with one difference: we subtract inventory from current assets. The rationale is simple: not all companies have inventory that can be instantly sold. Because of this, it's not very safe to add inventory to the capacity to meet short-term liabilities (just think of the stores that are always running bargain-price sales to get rid of inventory). Either the company can't get rid of the inventory, or it sells it for a much lower price than it was assessed. The logic is the same as current liquidity: a number greater than 1 is good, a number less than 1 is not. Growth Here, we check indicators that tell us how much a company can grow. The main way to get an idea of ​​past growth: CAGR. Calculation: [(FV/PV)^(1/n)]-1 - CAPEX/Depreciation: Capital Asset Acquisitions/Depreciation and Amortization If a company's “Capex/Depreciation” = 1, it means that all the value invested in it is being used to cover the loss of value generated by depreciation. In other words, the value of the shareholder's investment is not generating a return seeking the company's growth. And that's bad. The higher the “CAPEX/Depreciation” value, the better. Corporate Governance CVM 358. It's worth mentioning the case of Oi. It's also worth mentioning that this was explained in the course, BUT also on Telegram, so leave the link in the description. I talk more about other governance indicators and give you a step-by-step guide on how to find the number of shares that managers have. Price Many people say that price doesn't matter, is that really true? Would you buy a BIC pen for R$0.50? and for R$300.00? So, why would it be any different with stocks? WAYS TO GET AN IDEA OF THE PRICE: P/L and P/VP P/L - Practically the best-known indicator of all. - Two ways to calculate the P/L: 1) Stock price/EPS 2) Market Cap/Net Profit With this, your fundamental analysis of variable income will be relentless! (Who knows, maybe you will even contribute in the future with your investment methodology through a finance channel? Financial education will thank you!)