In this guide we will learn all the basics of investing for absolute beginners. By the end of this, you will learn how to find good companies and dive deeper into the company financials to evaluate it and whether the price its selling for is a bargain or too expensive. No accounting, business or investing experience is assumed.

Here is an overview of what we will learn in this guide.

• We will start by giving a quick intro on the foundation and terms of investing.
• Then start by defining the type of companies we are equipped to invest in.
• Then move into finding a list of companies that we may want to invest in.
• We will then move into doing a quick analysis and overview of these companies.
• Out of the companies that have promise, we will move into doing deeper analysis.
• Finally we will evaluate whether the copmany is a good investment and at what price.

1. Value Investing Overview

What is value investing?

Value investing is a strategy where investors buy securities that are undervalued based on their intrinsic worth and wait until the market recognizes their true value, leading to a profit.

What are securities?

Securities are financial products that can be bought or sold.

There are two main types of securities:

1. Stocks: Fractional ownership in a company.

   For example, say a company like Apple has 100 shares and you own 1 share of Apple that means you own 1% of the company. In reality, Apple has billions of shares so owning 1 share of Apple represents a very small fraction like 0.0000001% of the company.

2. Bonds: When you buy a bond, you are lending money to a company or government. They promise to pay you back with interest over a period of time.

What does undervalued mean?

"Undervalued" refers to securities that are selling for less than their intrinsic value. This means the current market price is lower than what the security is truly worth based on an analysis of the company’s fundamentals.