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 (A)</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 (B)</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 (D)</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 (D)</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 (A)</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 (D)</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 (D)</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 (D)</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 (B)</p> Signup and view all the answers

What are the two major categories of stock analysis?

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

What is the primary focus of technical analysis?

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

What is the primary focus of fundamental analysis?

<p>A company's financial stability and profitability (A)</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 (D)</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 (A)</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 (B)</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 (C)</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 (D)</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. (B)</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. (D)</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. (D)</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. (C)</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. (A)</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. (C)</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 (C)</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 (A)</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 (B)</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 (A)</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 (D)</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 (B)</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 (B)</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 (B)</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 (D)</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 (D)</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 (A)</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 (C)</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 (D)</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 (D)</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 (C)</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 (C)</p> Signup and view all the answers

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