Stock Market Consulting – November 2018 (Value Investing FM) – Investment Academy – Learn value investing from scratch

As happens on the last Sunday of each month, here is the stock exchange office for November 2018 in which Adrián Godás and Paco Lodeiro answer questions from listeners.

On this occasion, we deal with topics such as the minimum amount to invest in the stock market, invest in fixed income, buy a home instead of investing, the implications of going public for a company, tools for tracking stocks, thorium as a disruptor of the Uranium, keep calm on the falls and Francisco García Paramés.

We also talk about companies such as Mandalay Resources, Constellation Software, Banco Santander, Brookfield Asset Management, Gamesa, Renta Corporación, Keck Seng, Gold Fields and IPCO.

Tabla de contenido

Stock Market Consulting - November 2018

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Questions from the Stock Exchange Consultation of November 2018

About an offer on Black Friday

Hello Paco. I am very interested in training, but I have missed the sixth anniversary offer. Are you going to make a sale on Black Friday?

(Joaquín)

About the minimum amount to invest

Dear Paco and Adrián:

Thank you for your attention and receive our best wishes for success in any personal and professional project that you have now and for the future.

We are writing to you because we live in Mexico and just this year we became fans of your videos on YouTube. Everything was in relative order here and, based on your information and experiences, we set out to start saving with the intention of raising money and using it for value investing.

Our specific question is: What is the minimum amount in USD or Euros that we need to collect to start in value investing? Our question is because here there has been a typical stupidity of the left that has been elected with a majority in congress and the presidency, and as the first government decision they have canceled the work project where we were working as employees. The consequences of this will be devastating, and the truth is that it will be better to start in value, even if it is with little.

Thank you for your attention and we await your response and comments.

(Francisco Lerin)

About investing in fixed income

I am reading "The Smart Investor" by Benjamin Graham. In this book, the author recommends diversifying your investment portfolio in first-class bonds and stocks, but I have never (I think) heard you recommend this type of bond. What is your opinion about this? I can intuit that you are not friends with obligations because current profitability is not what it was in the 70s, but I would like to hear your opinion.

(Pablo Yáñez)

On temporal diversification

I have various doubts

The first question is about the time of purchase, or temporary diversification. Graham talks about the technique of averaging money costs by continually buying shares in a positively reviewed company regardless of how it is listed. Do you apply this method? from the video you have in the introductory course, I understand that no. Could you confirm it for me?

On buying a home instead of investing

And the second question is related to the diversification of assets, that is, the eternal question of whether to buy the main home and lock one of his savings in an asset that does not generate income, at least in the short term, or precisely invest those savings wisely ( entrance of the house) and obtaining revenue from them with, for example, value investing. And why do I ask you this will you think? I ask this because it is about the situation of many university workers with families who are not so young anymore (over 35 years old, 37 in my case) EYE, who live in a neighborhood of the capital where they can live by renting but if they wanted to ( and they could) buy, they would not find a (family) house for less than € 500000, which would mean blocking about € 150000 in an asset that does not generate income (except if it is sold one day). does this make sense? I am a bit tired of watching the typical online videos that compare the decision to buy and rent based on the hypothesis that a house costs you € 200000. That in Madrid, in a correct neighborhood, does not exist. If you have a family and you want (need) a house with at least 3-4 bedrooms, you should have prices starting at € 400000 and up (or change your neighborhood of course and go to a much worse one). Looking at this situation, and seeing that buying a house was important to me, I am coming to the conclusion that with these house prices, it makes no sense to buy and it is much more intelligent to rent, save and invest your savings (the entry that you are not going to imobolizar enen. a house plus monthly savings plus dividends or interest on obligations) in value investing. How do you see it (forgive the roll)?

About investing in fixed income obligations

A third question would be to know if you work on your portfolios 100% with stocks or if, as Graham advises, you have at least 25% obligations.

On Benjamin Graham's investment styles

And the last one, I promise hehe, which method do you recommend: defensive investor or entrepreneur. I understand from your videos and lectures that you are rather an entrepreneur. Right?

(Fabio Rodono)

On the implications of going public

What are the implications for a publicly traded company?

(Monserrat)

About tools for tracking actions

Hi guys, a question for the next office:

In order not to look at the prices every day, but to find out when one of our stocks in the portfolio has a fall or rise on the big day, what tool do you use or do you know for this? I think IB allows creating alerts, but as of today I only have DeGiro.

(Juan Blanco)

About Mandalay Resources

Ask for the next practice, raw materials of course :-). What do you think of the mining company Mandalay Resources? It appears that there has been quite a bit of volatility in recent months and the stock is at a low. How do they see it? Pros and cons? the people of AZ seem to have continued to buy at a minimum. Thanks and good job 🙂

(Rofhhh)

About dollar purchases with Interactive Brokers

Thanks for sharing knowledge. A question for the next practice, in Interactive Brokers when we have an account in €, which is better to buy American stocks? Buy dollars or that IB lent you the dollars and pay interest.

(Jose Vicente Montoliu)

About the book "On the Stock Market, Invest in Value" by Jean-Marie Eveillard

Hello how are you? Have you read ¨In the Stock Market, Invest in Value¨ by Jean-Marie Eveillard? How is it?

(Sebastián Schaffner)

On thorium as a uranium disruptor

A possible question for Adrián for the next Stock Exchange Consultation: Adrián, you who are a great fan of raw materials and in particular uranium, what do you think of a possible technological disruption affecting this market? I am referring to Thorium, since it is considered as a possible substitute for uranium in relation to nuclear fission. Apparently, it seems that there are still some technical obstacles to overcome, but, without being an expert in the field, it seems that they could be overcome in the medium / long term. In this way, the nuclear fuel would become Thorium instead of Uranium since it has important advantages, especially related to nuclear waste and safety against disasters. Thank you very much.

(AlexGod04)

About Constellation Software management

Hello, first of all I have to say that I think the podcast you do is wonderful. I have a question about the management of Constellation. Is it just the CEO who is a genius, or is there really a team behind him? I ask him because he knows what would happen if the guy freaks out.

(Moncho Martínez)

About Banco Santander

Can you comment on Banco Santander ?, with a staff of just over 8

(Pablo Ibáñez Pérez)

Sobre Brookfield Asset Management y Brookfield Property REIT

Juan Fr:

Hello Adrian. I heard that you are studying Brookfield and that you really liked it. We have coincided in the month of October studying the company. I have already taken important positions in BAM and BPR in October. I am interested in your opinion about Brookfield and I would appreciate it if you would share your opinion as you get to know it.

About Gamesa and the wind sector

Opinion on Gamesa and the wind sector

(Sergio Belinchón)

About economic history books

I am currently reading "The Twilight of the Empire of the Sun" which talks about Abengoa. Could you recommend books on business or economic history? Books to understand what those companies did wrong.

(Anonymous)

On how to consult the main shareholders of a company

Where can you check if the management committee has shares in the company? I know that Renault, ICL and some others have it, but I know it from press clippings, comments from Iván Martín and little else. Can you search Morningstar, Investing or some other site? I have not found it. In the annual reports of the companies I don't usually see it either. Shouldn't they be required to communicate what they have?

(Cide Hamete)

About Renta Corporación

Do you have an opinion on corporate income?

(Srepila)

Proposal for a value poker conference

By the way, by the time a few days of value poker, as far as I can see, there are a few of us who are passionate about both; P

(Fabian)

About Keck Seng

Anonymous: what do you think about the keck seng investment idea that so many comments have subscribed since Alex Estebaranz and the Horos fund brought it to light?

About Gold Fields

Could you give me your opinion about Gold Fields Regards

(Jesus Higa)

About probate problems with a foreign broker

You have commented on the change from broker to interactive brokers, I sometimes also thought about it but I had a question in case of death with the issue of inheritance, would it create problems for my heirs with the American treasury?

(Anonymous)

On staying calm on falls

Good morning, my portfolio consists of Burford, IPCO, JD.com, Keck seng, noble corporation, paradox, sdiptech and teekay corp. I have a rather curious drop in the net asset value teekay corp. I have a rather curious drop in the net asset value of my portfolio. Do you think I should be worried?

(Anonymous)

About IPCO and oil

great program as always !!! question for the office, do you think that what happened this week with oil stocks, including IPCO, was the real black friday of this month? or what are you downgraded justified with the demand reduction prospects discussed? congratulations for the cracks program !!

(Chamo7)

About Francisco García Paramés

What about Francisco García Paramés?

(Various)