Disney Stock Investment
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Questions and Answers

What was the initial price of the Disney stock given to Philip as a gift?

  • $1.60
  • $1.40 (correct)
  • $2.00
  • $1.00
  • How many shares of Disney stock did Philip own after the stock splits and dividend investments?

  • Over 20 shares
  • Over 60 shares
  • Over 50 shares (correct)
  • Over 40 shares
  • What was the approximate value of the shares when Philip sold them in 2007?

  • $1,800
  • $1,400
  • $1,600 (correct)
  • $1,200
  • What was the percentage return on Philip's investment?

    <p>114,100% return</p> Signup and view all the answers

    What is the main goal of the video, according to the narrator?

    <p>To explore the tools to become a skilled investor</p> Signup and view all the answers

    Why might someone want to invest in a certain company, according to the narrator?

    <p>All of the above</p> Signup and view all the answers

    What are the aspects of a company's health that are neither technical nor fundamental in nature?

    <p>Qualitative elements</p> Signup and view all the answers

    According to Warren Buffett, what are the three general rules for choosing a company to invest in?

    <p>Good returns on net tangible capital, able and honest managers, and sensible price</p> Signup and view all the answers

    What is the ultimate goal of combining technical, fundamental, and qualitative analysis in investing?

    <p>To make a more confident and informed investor</p> Signup and view all the answers

    What is the importance of personal feelings and values in investing decisions?

    <p>They should be allowed to have a seat at the decision-making table</p> Signup and view all the answers

    What is the approach that many investors, including Warren Buffett, take to investing?

    <p>A combination of technical, fundamental, and qualitative analysis</p> Signup and view all the answers

    What is the advice given to new investors who want to start picking stocks?

    <p>Start small and do your own work to verify information</p> Signup and view all the answers

    What are the two major categories of stock analysis?

    <p>Technical and fundamental analysis</p> Signup and view all the answers

    What is the primary focus of technical analysis?

    <p>Patterns in historical price movements and trading volume</p> Signup and view all the answers

    What is the purpose of back-testing in technical analysis?

    <p>To identify repeatable patterns in historical data</p> Signup and view all the answers

    What is a moving average in technical analysis?

    <p>A constantly updating average price or trading volume of a stock</p> Signup and view all the answers

    What is the primary focus of fundamental analysis?

    <p>A company's financial stability and profitability</p> Signup and view all the answers

    What is the formula to calculate earnings per share (EPS)?

    <p>Net income minus preferred dividends divided by outstanding shares</p> Signup and view all the answers

    What is the purpose of calculating the price-to-earnings (P/E) ratio?

    <p>To compare a company's stock price to its earnings</p> Signup and view all the answers

    What is the advantage of using fundamental analysis to compare companies?

    <p>It allows investors to compare companies based on their financial health and profitability</p> Signup and view all the answers

    What is the appeal of using mathematical ratios in fundamental analysis?

    <p>It provides a sense of control over the economy</p> Signup and view all the answers

    What is the key difference between technical and fundamental analysis?

    <p>Technical analysis focuses on charts and patterns, while fundamental analysis focuses on a company's financial health and profitability</p> Signup and view all the answers

    What motivated Philip to explore the tools for picking stocks?

    <p>He realized that there's more to picking stocks than following a gut instinct.</p> Signup and view all the answers

    What was the result of the stock splits and dividend investments on Philip's initial share?

    <p>He ended up owning over 50 shares.</p> Signup and view all the answers

    Why did Philip's grandmother gift him a certificate for a single share of Disney stock?

    <p>To celebrate his birth.</p> Signup and view all the answers

    What was the outcome of Philip's investment in Disney stock?

    <p>He realized a whopping 114,100% return on his investment.</p> Signup and view all the answers

    What prompted Philip and Julia to sell their shares in 2007?

    <p>They needed money for a down payment on their first house.</p> Signup and view all the answers

    Why might someone want to invest in a company, according to the passage?

    <p>Because they see the company's name on WallStreetBets.</p> Signup and view all the answers

    What do technical analysts focus on when analyzing a company's stock?

    <p>The historical patterns and trends in the stock's price and trading volume</p> Signup and view all the answers

    What is the purpose of back-testing in technical analysis?

    <p>To identify repeatable patterns in a stock's price and trading volume</p> Signup and view all the answers

    What is the earnings per share (EPS) formula?

    <p>Net income minus preferred dividends divided by the number of shares outstanding</p> Signup and view all the answers

    What is the purpose of calculating the price-to-earnings (P/E) ratio?

    <p>To determine the stock's price relative to its earnings</p> Signup and view all the answers

    What do fundamental analysts focus on when analyzing a company's stock?

    <p>The company's financial stability and profitability</p> Signup and view all the answers

    What is the moving average in technical analysis?

    <p>A constantly updating average price or trading volume of a stock</p> Signup and view all the answers

    What is the crossover strategy in technical analysis?

    <p>A strategy to buy or sell a stock based on its price movement relative to its moving average</p> Signup and view all the answers

    What is the purpose of using ratios like EPS and P/E in fundamental analysis?

    <p>To evaluate the company's financial stability and profitability</p> Signup and view all the answers

    What is the appeal of using mathematical ratios in fundamental analysis?

    <p>It provides a sense of control over the market</p> Signup and view all the answers

    What is the main difference between technical and fundamental analysis?

    <p>Technical analysis focuses on the stock's price and trading volume, while fundamental analysis focuses on the company's financial stability and profitability</p> Signup and view all the answers

    What is the primary focus of qualitative analysis in investing?

    <p>Assessing a company's competitive advantage and management</p> Signup and view all the answers

    Why is it important to consider personal values and feelings in investing decisions?

    <p>Because they can influence your interpretation of analytical data</p> Signup and view all the answers

    What is the advantage of combining technical, fundamental, and qualitative analysis in investing?

    <p>It provides a more comprehensive understanding of a company's strengths and weaknesses</p> Signup and view all the answers

    What is the goal of investing, according to the narrator?

    <p>To become a more confident and informed investor</p> Signup and view all the answers

    Why is it important to start small and do your own research when investing?

    <p>To verify information and make informed decisions</p> Signup and view all the answers

    What is the approach that many investors, including Warren Buffett, take to investing?

    <p>A combination of technical, fundamental, and qualitative analysis</p> Signup and view all the answers

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