Mastering Investment Analysis: A Beginner's Guide

real estate insight I will be your facilitator this morning. My name is [Name], and I will be sharing with you on the topic. investment analysis investment analysis before now we know what investment is you know we can Just give an investment as something you put your money into, you know, to which you get a return. on it a ripple effect it could be financial, you know, like you have shares, you have a bond You have stocks, you have real estate as well, which is part of investment, so let's quickly Dive into this topic: investment analysis, so my next slide—what is investment analysis? Investment analysis is the process of researching and evaluating an investment to predict its future performance and determine its suitability for specific investors' investments analysis is a broad term for many different methods of evaluating the investment industry sectors and economic trends—you know, it can include charting past returns to predict future ones performance in selecting the type of investment that best suits investment needs or in evaluating individual securities such as stocks and bonds to assess their risk yield potentials or price movements, so investment analysis is actually a process you know whereby you hire an investment analyst who is in charge; it's not meant for any other person, someone who You know the basics of investing—we call them investment analysts, and you hire them. They help you conduct research, make findings, perform due diligence, and evaluate investment potential. investments into which you can put your money, and there are some things that you know they When putting together, there are certain things they checkmate before advising you to put your money there. that your money won't be, you know, wasted because when we're talking about Investment requires you to consider the future outcome—that is, the sense of it, you predict the future. If I am investing my money into this kind of investment, what is the probability that this the investment will grow so that I can achieve a ripple effect by the end of the day, so the more The reason we need experts, whom we call investment analysts, is so now let's look at understanding investment analysis The aim of investment analysis is to determine how an investment is likely to perform—that is the aim and the essence of why we need experts; we need to know how the likely to perform and how suitable it is for a particular investor, so even if I'm The chances should be slim, not even 50-50, because I want to venture my money into this. The essence is for me to make a profit, which means to achieve higher returns on that investment—it's not for me to put my money there and invest, and then end up losing money—that's absolutely not acceptable, so we need to know how the investment will perform, and you know also how suitable it is for a particular investor, and likewise, the key factors in investment analysis include the appropriate entry price, the expected time horizon or investment, or holding an investment, and the the role the investment will play in the portfolio as a whole, so you need to know what year it is the time horizon—how long is it? A short-term investment? A long-term one? Like, there are some kinds of investment like real estate—now you know if you want to really make huge returns on it You don't do short-term investments; you don't invest on a short-term basis; you need a long-term strategy. You know, after such a long time, after so many years—ten years—you can come back, and you'll be fine. Return on investment, unlike shares, is not something you can rely on for a long time. Because whether you like it or not, you know they didn't actually flock to it—it goes up, it comes down. Down, that's why you have some investors, this analyst will tell you, "Okay, go and sell." Your shares now, they are the ones looking at it; when the time rises, they will advise you to go. Sell it. Am I communicating clearly? That's their job. Yours is to invest and make a good return on it. Let's go to the next slide. Let's quickly look at some types of investment analysis. These are Actually, these are indeed methods, so the number one you have here is fundamental. fundamental analysis; this focuses on understanding a company's business business model, competitive advantages, management quality, and financial health, generally So in the analysis, we conduct a thorough background check of the company's strengths and weaknesses. of the company, the competitors, and also the financials, which is the financial statement We'll be talking about the balance sheet, talking about the profit or loss, talking about the cash flow statement of that particular company as a whole, so we refer to it as fundamental Now analysts often scrutinize financial statements such as the balance sheet. income statement and statement of cash flows to assess the company's performance and potential for future growth, which is extremely important, because before I invest my money into a company now I need to know whether the company is a going concern business, if that company is a what is a It's not a company that will go bankrupt and cease operations after two or three years. Have you? So we are looking at a long-term investment; will this company continue? to operate for a longer period of time, then also key indicators such as earnings from past years revenue growth and profit margins are crucial in this analysis, so you know you need to look at the revenue growth to compare previous years with the current year, and you need to predict You know, the following years too—if there's no growth, I can't put my money there. I can't put my money there, then you also talk about the earnings from past years. in past years, when you buy shares in companies, you look at the earnings How much is the yield on my share unit actually growing, or is it not growing, or is the situation changing? down, so this is part of the fundamental analysis, the due diligence conducted by the analyst then we'll go to the second one, which is technical analysis. Technical analysis this involves studying past market data, primarily price and volume, to forecast future price movements You need to look at the future; I mean, compare the previous data with the market trend. to see whether it will be favorable or not, this approach is based on the belief that historical trading activity and price changes can be valuable indicators of future Price behavior, so let's move on to the third one, which is quantitative analysis. Quantitative analysis is an analytical method that employs mathematical and statistical models. To evaluate investment opportunities, this approach relies heavily on numerical data. and computational techniques to identify patterns and correlations that might not be apparent Through the traditional analysis method, that was the reason why I said we need professionals. People who understand figures know that they truly understand the movement and numbers very well. Very well, it's not someone who can just sit down and tell you no; we have some people who are guru that they can predict you think they you think uh they are they are they are which they Are they witches or wizards? No, they've been in that line for decades, for a longer period. Of time, they can tell you this will be the aftermath of this, of this project, so let's go. to the next slide now, what does an investment analyst do? Like I said initially, this is our next Part we need them to help us, you know, make findings before we invest our money investment. analysts research and analyze financial data to help guide investment decisions, so before When you make an investment decision, you need an investment analyst to guide and advise you. Before you put your money there, don't think that because someone else did it before and it worked For that person, it means you should do it too, but it might not work for you, especially now. Short takeaways: Investment analysis involves researching and evaluating a security or an industry to predict its future performance and determines its suitability for a specific investor and also investment analysis may also involve evaluating or creating an overall financial strategy, so we need to know what we are aiming for—conducting researches, evaluating the securities that you might want to go for could be real estate, they could be shares, they could be bonds It could be a stock, so we need to be extremely careful when investing our money, you know, that's why More reason why we need experts to actually guide us—this is very short, very urgent. Extremely short, but feel free to ask any questions, suggestions, or comments. You can post that on our social media handles. Thank you for having me. Bye for now.