myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.

Showing posts with label Alphabet. Show all posts

Friday, 26 April 2024

The Magnificent Seven stocks: Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla

Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent , Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the early part of the second quarter of 2024 showed a big divergence of returns.

Tuesday, 26 September 2023

ALPHABET

Tuesday, 14 June 2022

Fundamentals of Alphabet Inc. Cl C GOOG (U.S.: Nasdaq)

INCOME STATEMENT ANNUAL

Fiscal year is January-December. All values USD Millions.

2021

2020

2019

2018

2017 5-year trend

Sales/Revenue

257,488

182,350

161,402

136,958

111,024

Gross Income

146,549

97,618

89,506

77,409

65,441

Gross Profit Margin 56.91

Non-Operating Interest Income

1,499

1,865

2,427

1,878

1,312

Pretax Income

90,734

48,082

39,625

34,913

27,193

Pretax Margin 35.24%

Net Income

76,033

40,269

34,343

30,736

12,662

Net Margin 29.53%

EPS (Basic)

112.20

58.61

49.16

43.70

18.00

EBITDA

91,006

54,744

47,254

40,566

35,966

CASH FLOW STATEMENT

Operating Activities

Fiscal year is January-December. All values USD Millions.

2021

2020

2019

2018

2017 5-year trend

Net Income before Extraordinaries

76,033

40,269

34,343

30,736

12,662

Depreciation, Depletion & Amortization

12,441

13,697

11,781

9,035

6,915

Funds from Operations

93,175

63,297

53,701

43,063

27,845

Net Operating Cash Flow

91,652

65,124

54,520

47,971

37,091

Capital Expenditures

(24,640)

(22,281)

(23,548)

(25,139)

(13,184)

Repurchase of Common & Preferred Stk.

(50,274)

(31,149)

(18,396)

(9,075)

(4,846)

Free Cash Flow

67,012

42,843

30,972

22,832

23,907

Free Cash Flow Yield 3.41%

BALANCE SHEET

ANNUAL

Assets Fiscal year is January-December. All values USD Millions.

2021

2020

2019

2018

2017 5-year trend

Cash & Short Term Investments

139,649

136,694

119,675

109,140

101,871

ST Debt & Current Portion LT Debt

2,302

2,794

1,199

Long-Term Debt

26,206

25,078

14,768

4,012

3,969

Total Current Assets

188,143

174,296

152,578

135,676

124,308

Total Current Liabilities

64,254

56,834

45,221

34,620

24,183

Current Ratio 2.93

Quick Ratio 2.91

Cash Ratio 2.17

Total Assets

359,268

319,616

275,909

232,792

197,295

Asset Turnover 0.76

Return On Average Assets 22.40%

Total Liabilities

107,633

97,072

74,467

55,164

44,793

Total Shareholders' Equity

251,635

222,544

201,442

177,628

152,502

Total Shareholders' Equity / Total Assets

70.04%

69.63%

73.01%

76.30%

77.30%

KEY STOCK DATA

P/E Ratio (TTM) 19.33(06/13/22)

EPS (TTM) $110.56

Market Cap $1.40 T (@ 06/13/22 $2,137.53USD / share)

Shares Outstanding 313.38 M

Public Float 273.83 M

Yield GOOG is not currently paying a regular dividend.

Latest Dividend N/A

Ex-Dividend Date N/A

Average Growth Rates

Alphabet Inc. Cl C Past Five Years Ending 12/31/2021 (Fiscal Year)

Revenue +26.38%

Income +100.10%

Earnings Per Share -

Capital Spending +17.38%

Gross Margin +62.77%

Cash Flow +36.06%

Share price

Alphabet Inc Class A

2,130.43 USD-769.63 year to date

14 Jun, 9:41 am GMT-4

Alphabet Inc Class A

2,131.91 USD-318.71 past year

14 Jun, 9:41 am GMT-4

Alphabet Inc Class A

2,131.91 USD+1,171.58 past 5 years

14 Jun, 9:41 am GMT-4

Alphabet Inc Class A

2,131.91 USD+2,076.04 all time

14 Jun, 9:41 am GMT-4

Peak price US $2,997 (18.11.20210

Stock Price Target GOOG

High	$4,533.34
Median	$3,200.00
Low	$2,650.00
Average	$3,247.34
Current Price	$2,137.53

Ratios & Margins Alphabet Inc. Cl C

All values updated annually at fiscal year end

Valuation

P/E Ratio (TTM) 19.44
P/E Ratio (including extraordinary items) 20.99
Price to Sales Ratio 7.62
Price to Book Ratio 7.62
Price to Cash Flow Ratio 21.42
Enterprise Value to EBITDA 15.74
Enterprise Value to Sales 5.31
Total Debt to Enterprise Value -
Total Debt to EBITDA 0.16
EPS (recurring) 101.46
EPS (basic) 113.88
EPS (diluted) 112.20

P/E Ratio (TTM) 19.44

P/E Ratio (including extraordinary items) 20.99

Price to Sales Ratio 7.62

Price to Book Ratio 7.62

Price to Cash Flow Ratio 21.42

Enterprise Value to EBITDA 15.74

Enterprise Value to Sales 5.31

Total Debt to Enterprise Value -

Total Debt to EBITDA 0.16

EPS (recurring) 101.46

EPS (basic) 113.88

EPS (diluted) 112.20

Efficiency

Revenue/Employee -
Income Per Employee -
Receivables Turnover -
Total Asset Turnover 0.76

Revenue/Employee -

Income Per Employee -

Receivables Turnover -

Total Asset Turnover 0.76

Liquidity

Current Ratio 2.93
Quick Ratio 2.91
Cash Ratio 2.17

Current Ratio 2.93

Quick Ratio 2.91

Cash Ratio 2.17

Profitability

Gross Margin +56.91
Operating Margin +30.51
Pretax Margin +35.24
Net Margin +29.53
Return on Assets 22.40
Return on Equity 32.07
Return on Total Capital 29.62
Return on Invested Capital -

Gross Margin +56.91

Operating Margin +30.51

Pretax Margin +35.24

Net Margin +29.53

Return on Assets 22.40

Return on Equity 32.07

Return on Total Capital 29.62

Return on Invested Capital -

Capital Structure

Total Debt to Total Equity -
Total Debt to Total Capital -
Total Debt to Total Assets 7.94
Interest Coverage -
Long-Term Debt to Equity -
Long-Term Debt to Total Capital -
Long-Term Debt to Assets 0.07

Total Debt to Total Equity -

Total Debt to Total Capital -

Total Debt to Total Assets 7.94

Interest Coverage -

Long-Term Debt to Equity -

Long-Term Debt to Total Capital -

Long-Term Debt to Assets 0.07

My 18 points guide to Successfully compounding your money in Stocks

Be a good stock picker.
Think as a business owner.
Always look at value rather than the price. Do the homework.
Buy and hold is alright for selected stocks.
Compounding is your friend, get this to work its magic.
Mr. Market is there to be taken advantage of. Do not be the sucker instead. BFS;STS.
Always buy a lot when the price is low.
Never buy when the stock is overpriced.
It is alright to buy when the selected stock is at a fair price.
Phasing in or dollar cost averaging is safe for such stocks during a downtrend, unless the price is still obviously too high.
Do not time the market for such or any stocks.
By keeping to the above strategy, the returns will be delivered through the growth of the company's business.
So, when do you sell the stock? Almost never, as long as the fundamentals remain sound and the future prospects intact.
The downside risk is protected through only buying when the price is low or fairly priced.
Tactical dynamic asset allocation or rebalancing based on valuation can be employed but this sounds easier than is practical, except in extreme market situations.
Sell urgently when the company business fundamental has deteriorated irreversibly.
You may also wish to sell should the growth of the company has obviously slowed and you can reinvest into another company with greater growth potential of similar quality. However, unlike point 16, you can do so leisurely.
In conclusion, a critical key to successful investing is in your stock picking ability.

http://myinvestingnotes.blogspot.com/2012/07/my-18-points-guide-to-successfully.html

11 Lessons From Peter Lynch

Peter Lynch taught me:

1. Behind every stock is a company. Find out what it’s doing.
2. Never invest in any idea you can’t illustrate with a crayon.
3. Over the short term, there may be no correlation between the success of a company’s operations and the success of its stock. Over the long term, there’s a 100% correlation.
4. Buying stocks without studying the companies is the same as playing poker – and never looking at your cards.
5. Time is on your side when you own shares of superior companies.
6. Owning stock is like having children. Don’t get involved with more than you can handle.
7. When the insiders are buying, it’s a good sign.
8. Unless you’re a short seller, it never pays to be pessimistic.
9. A stock market decline is as predictable as a January blizzard in Colorado. If you’re prepared, it can’t hurt you.
10. Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
11. Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested.

Lynch’s advice had a profound effect on my stock market approach. He taught me that investment success isn’t the result of developing the right macro-economic view or deciding when to jump in or out of the market. Success is about researching companies to identify those that are likely to report positive surprises.

Capital Expenditure

A great company with a Durable Competitive Advantage will have a ratio of Capital Expenditures to Net Income of less than 25%. Less is better.

Capital Expenditures are expenses on:
- fixed assets such as equipment, property, or industrial buildings
- fixing problems with an asset
- preparing an asset to be used in business
- restoring property
- starting new businesses

A good company will have a ratio of Capital Expenditures to Net Income of less than 50%.

A great company with a Durable Competitive Advantage will have a ratio of less than 25%.

Less is better.

Benjamin Graham's 113 Wise Words

The true investor scarcely ever is forced to sell his shares, and at all times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage. That man would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused him by other persons' mistakes of judgement."

Philip Fisher's Wise Words

"The refusal to sell at a loss, while completely natural and normal, is probably one of the most dangerous in which we can indulge ourselves in the entire investment process.

More money has probably been lost by investors holding a stock they really did not want until they could 'at least come out even' than from any other single reason. If to these actual losses are added the profits that might have been made through the proper reinvestment of these funds if such reinvestment had been made when the mistake was first realized, the cost of self-indulgence becomes truly tremendous."

(Common Stocks and Uncommon Profits)

The Ultimate Hold-versus-Sell Test

Here is the overriding primary test, followed by observations on why it is so critically important:

Knowing all that you now know and expect about the company and its stock (not what you originally believed or hoped at time of purchase), and assuming that you had available capital, and assuming that it would not cause a portfolio imbalance to do so, would you buy this stock today, at today's price?

No equivocation. Yes or no?

Answers such as maybe or probably are not acceptable since they are ways of dodging the issue. No investor probably buys a stock; they either place an order or do not.

Here is the implication of your answer to that critical test: if you did not answer with a clear affirmative, you should sell; only if you said a strong yes, are you justified to hold.

Some thoughts on Analysing Stocks (KISS)

Ideally a stock you plan to purchase should have all of the following charateristics:

• A rising trend of earnings dividends and book value per share.
• A balance sheet with less debt than other companies in its particular industry.
• A P/E ratio no higher than average.
• A dividend yield that suits your particular needs.
• A below-average dividend pay-out ratio.
• A history of earnings and dividends not pockmarked by erratic ups and downs.
• Companies whose ROE is 15 or better.
• A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.

Margin of Safety Concept: Stocks should be bought like groceries, not like perfume

The high CAGR in the early years of the investing period, due to buying at a discount, tended to decline and approach that of the intrinsic EPS GR of the companies over a longer investment time-frame.

Chapter 20 - “Margin of Safety” as the Central Concept of Investment

A single quote by Graham on page 516 struck me:

Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

Basically, Graham is saying that most stock investors lose money because they invest in companies that seem good at a particular point in time, but are lacking the fundamentals of a long-lasting stable company.

This seems obvious on the surface, but it’s actually a great argument for thinking more carefully about your individual stock investments. If most of your losses come from buying companies that seem healthy but really aren’t, isn’t that a profound argument for carefully studying any company you might invest in?

myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Friday, 26 April 2024

The Magnificent Seven stocks: Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla

Tuesday, 26 September 2023

ALPHABET

Tuesday, 14 June 2022

Fundamentals of Alphabet Inc. Cl C GOOG (U.S.: Nasdaq)

Stock Price Target GOOG

Ratios & Margins Alphabet Inc. Cl C

All values updated annually at fiscal year end

Valuation

Efficiency

Liquidity

Profitability

Capital Structure

All equity security investments present a risk of loss of capital

The Ultimate Hold-versus-Sell Test

Some thoughts on Analysing Stocks (KISS)

Benjamin Graham

Sell the losers, let the winners run.

Investment Style

Warren Buffett

Political and Economic News

Interesting Blogs