Today, I want to take a look at some fundamental analysis things.
Let’s get started and take a look at this week’s question from Andreas Piccininno: Hello, Sasha! Awesome video as usual. What tools do you use for fundamental data scanning/filtering? Thank you!
Here’s the answer.
It depends on the type of fundamental data that you want to look at. I always recommend checking out earnings – making sure that the earnings are beating 20% or more based on the previous earnings. That’s something I’ve talked about in the past.
And the reason for that is because sometimes companies are trying to hit their earnings by cutting employees. They’re firing people, which allows you to cut people and make more money.
That’s why 20% is nice. Beat to beat from the previous year because if they only beat it by 5%, 7%, or 12%, they could have made that through cutting expenses.
20% actually could signify more that the company is growing. If we look at the individual things, visit Yahoo Finance. That’s a good starting point for fundamental data.
Let’s take a look here at Caterpillar as an example. Here’s some exciting stuff, but you also have some other things in here like the financials.
If you look at the financials, here’s an income statement in a sheet.
This is annual. You can look at it quarterly. And it gives you a little bit of a breakdown. This is a simplistic view, of course. You could look at the balance sheet, cash flow, but this is the big picture things that most people want to know.
Are you looking for more details?
If you want to get into more detail take a look at would take a look at sec.gov
You can go to filings and then here from company filings search we can and type in Caterpillar.
Here you can get some quick filings. Here’s an 8k sheet for the reports. Also, here’s the filing dates that they’ve had. You have a 10K as well and 10-Q.
You have a lot of different documents that are all fairly important. Some of them are even interactive.
Here’s your 10K – that’s the main file.
I’ll click this, and now you can hone in and see how long this document is.
If you want to get into some crazy details, this is where you would find it. This is the public filings that they have to do. You have a table of contents. Every company’s going to be a little different.
You have to know and understand that industry if you want to get into the nitty-gritty behind it. They’ll talk about a lot of other things you might want to see and learn. Also, it gives you insight and information that you need to know.
If you decide to scroll down this file, you can find all kinds of:
- charts and graphs
- fundamental data
Taking a look at Apple company
Here you can find 8-K, 10-Q as well.
Info about net sales:
December 29th, 2018 and December 30th, 2017
In 2018 the products this the amount of money they’re making $73,000 compared to $79,000 the previous year.
That could be going down.
You can get into the numbers and the details. As specific as you want. You can go through fundamental data, and you take a cup of coffee and enjoy yourself.
This is a nice read. And that’s where you get the data. Looking at estimated or quarterly earning reports is what simplifies the process. Or even just looking at charts. And that’s why I like the charts.
Some of the downsides when you go through these documents:
- lingo is not always understandable
- it gets more confusing
- your mind can play tricks
- people use different languages as they write this from company to company
Be wary of these things, and you got to know and understand the company to make a big investment decision. Otherwise, for the majority of people buying a simple ETF with a basket of diversified stocks, sometimes it’s just a lot easier than worrying and reading and spending hours upon these things.
You have to do your own due diligence to figure out if that’s worth your time. In either case, with that being said, it’s my take on fundamental data scanning and filtering.
If you want the fundamental data, that’s where it is. That’s fundamental data for you, and that’s getting into the heart of it.