What Your Neighbors Are Investing In

There are several ways to find out what people have invested in. One way is to research successful institutional investors, such as Warren Buffett, and emulate their decisions. Many documents are published daily that provide insight into the thinking of prominent investors and their reasons for specific investment choices. These include monthly fact sheets, market commentaries, letters to shareholders, and press releases. Social media is also a platform that investors use to share their views on the economy and individual companies. Additionally, public databases like EDGAR provide access to corporate information, allowing research into a company's financial information and operations through their filings with the SEC. Tracking the portfolio of successful investors can be beneficial, but it is important to study the stocks before investing, as even experienced investors can make mistakes.

Check block/bulk deals lists

Checking block/bulk deals lists is a great way to find out what people have invested in. These lists provide data on large transactions made by various entities, including promoters, mutual funds, financial institutions, insurance companies, banks, venture capitalists, and foreign institutional investors. Block deals occur during a specific morning interval, while bulk deals can happen at any time during the day.

You can access these lists from websites such as moneycontrol.com and trendlyne.com, which provide details on the latest bulk and block deals. These websites allow you to search by name, stock, or date range to find relevant bulk or block deals. For example, you can search for "Balanced Fund" to find all funds related to that term or use quotation marks to find the exact phrase.

The lists typically include information such as the company name, the client, the rate, and the quantity of the deal. This enables you to see who is buying and selling stocks and the specifics of the transaction. For instance, a bulk deal for BEML Ltd. on July 5, 2024, involved the trading of 316,980 shares at an average price of Rs 5119.51.

By checking block/bulk deals lists, you can gain insights into the investment activities of different entities and track large transactions that could impact the market.

It is worth noting that the data on these lists may be subject to change, as members who executed the deals can request modifications.

Review financial statements quarterly

Reviewing financial statements quarterly is a crucial aspect of understanding a company's financial health and performance. Here are some detailed steps to guide you through the process of reviewing financial statements:

Understand the Purpose of Financial Statements:

Financial statements provide a window into a company's financial position and performance. They offer critical information that helps investors, accountants, and business professionals make informed decisions. These statements include balance sheets, income statements, cash flow statements, and annual reports.

Familiarize Yourself with the Types of Financial Statements:

There are four main types of financial statements that you should know:

• Balance Sheet: This statement conveys the "book value" of a company, showing its assets, liabilities, and owners' equity as of a specific date. It allows you to assess the company's resources and how they are financed.
• Income Statement: Also known as a profit and loss (P&L) statement, it summarizes the financial transactions, including revenue, expenses, gains, and losses over a given period. It provides insights into the company's financial trends and business activities.
• Cash Flow Statement: This statement details the cash flow from operating, investing, and financing activities, demonstrating the company's ability to generate cash and its financial stability.
• Annual Report: Public corporations publish annual reports to provide shareholders with operational and financial updates. These reports often include editorial content, infographics, and a letter from the CEO, along with financial data and industry insights.

Analyze the Financial Statements:

When reviewing financial statements, here are some key aspects to consider:

• Balance Sheet: Compute rates of return and evaluate the company's capital structure using the accounting equation: Assets = Liabilities + Owners' Equity.
• Income Statement: Look for financial trends, such as revenue, expenses, gross profit, operating income, income before taxes, net income, and earnings per share (EPS).
• Cash Flow Statement: Analyze the cash flow from operating, investing, and financing activities to assess the company's short-term and long-term financial health.
• Annual Report: Review the financial data, industry insights, management's discussion, accounting policies, and additional investor information included in the report.

Compare and Evaluate:

To gain deeper insights, compare the financial statements with previous quarters or years. Look for trends, improvements, or areas of concern. Additionally, compare the company's performance with industry benchmarks or competitors to identify relative strengths and weaknesses.

Tools and Techniques:

Utilize tools such as Excel or other spreadsheet software to link the trial balance to the financial statements. This enhances data integrity and facilitates further analysis. Also, consider using proofing tools like Grammarly to review the statements for grammar and punctuation accuracy.

Final Review and Compliance:

Finally, conduct a comprehensive review of the financial statements, ensuring compliance with firm formatting standards. Scan the complete set of financials to get a general understanding of the report's composition. Pay close attention to accounting policies, frameworks (such as GAAP), and the type of entity being reported on. Compare dates, review supporting documents, and identify any additional disclosures needed.

Check the shareholding pattern of companies

Checking the shareholding pattern of a company can provide insights into how its shares are distributed among different entities, such as promoters and the public. This information is usually accessible through stock exchange websites and financial websites. Here's a step-by-step guide to checking the shareholding pattern of a company:

• Visit a stock exchange website, such as BSE India (https://www.bseindia.com).
• Enter the name of the company whose shareholding pattern you want to analyse in the search bar.
• Scroll down and locate the 'shareholding pattern' tab. Click on it.
• Select the specific quarter or year for which you want to review the shareholding pattern.
• Study the shareholding pattern presented for your selected time period.

It is worth noting that different countries or regions may have their own specific websites or platforms for accessing such information. Additionally, some financial websites like Moneycontrol, ET Market, and Market Mojo also provide insights into shareholding patterns.

Analysing the shareholding pattern of a company can offer valuable information. For instance, an increasing shareholding by promoters could be a positive sign, while a continuous decrease in their stake might indicate potential trouble.

Track portfolios using financial aggregator websites

Financial aggregator websites are an effective way to track your investment portfolio. These websites and apps allow you to monitor your investments in a single place, providing a holistic view of your financial situation. Here are some popular options:

Empower (Formerly Personal Capital)

Empower is a free financial dashboard that allows you to track your entire financial picture, including investment accounts, bank accounts, credit cards, loans, and retirement accounts. It offers a Retirement Planner to help you meet your savings goals and provides easy-to-read graphs and charts to track performance, asset allocation, and fees. Empower also offers wealth management services for a fee.

SigFig Wealth Management

SigFig offers a free app that automatically syncs your investment accounts into a single dashboard, providing real-time information on stocks, mutual funds, and exchange-traded funds (ETFs). It connects with over 50 brokerages and offers weekly email summaries, alerts, and a Portfolio Tracker to analyze hidden fees and overexposure to a particular stock or sector. A fee-based version is also available, which provides personalized investment plans.

Sharesight

Sharesight is a portfolio tracker that monitors the performance of your investments across 40 international exchanges. It offers data on price and performance for stocks, ETFs, and mutual funds, and can also track cryptocurrencies, real estate, private equity, and fixed-income investments. Sharesight provides annualized return calculations, factoring in capital gains, dividends, fees, and currency fluctuations. It offers customizable benchmarking and charting to compare your portfolio's performance against various indices. The basic service is free for up to ten holdings, with additional features available for a monthly fee.

Yahoo Finance

The Yahoo Finance app provides an easy-to-use platform to track your stocks, commodities, bonds, and currencies. It allows you to create and monitor the performance of your personal portfolio and sync it across multiple devices. You can set personalized alerts, follow market movements in real-time, and utilize interactive charting tools. As one of the largest business news sites, Yahoo Finance also provides fast access to breaking news, earnings reports, and financial information.

Seeking Alpha Premium

Seeking Alpha Premium is a unique portfolio tracker that combines investment research with portfolio analysis. It allows you to link your brokerage accounts and benefit from its vast array of quantitative and qualitative research. Seeking Alpha provides insights on individual stocks, news, earnings transcripts, dividend forecasts, and more. The platform offers a mobile app and a 7-day free trial.

WallStreetZen

WallStreetZen is a portfolio tracker designed for fundamental investors who want to stay informed about news, insider activity, analyst ratings, and upcoming events affecting their stocks. It offers a free Watchlist feature to track your portfolio holdings and provides access to fundamental analysis tools and Wall Street analyst ratings. A premium version is available for a monthly fee, and they also offer a separate newsletter service, Zen Investor, for stock market insights.

Ziggma

Ziggma is a portfolio tracker that focuses on automated monitoring and risk-adjusted returns. It measures portfolio quality, risk, and yield, and even provides insights on your portfolio's carbon footprint. Ziggma allows you to connect multiple accounts for free and provides Smart Alerts to help you stay diversified. It also computes projected dividend income and offers a 7-day free trial.

Listen in on conference calls

Conference calls are a vital way to communicate and stay connected in the business world. They allow teams to collaborate and make decisions remotely, bringing together diverse perspectives and expertise. Here are some tips to make the most of conference calls and effectively listen in to gain valuable insights:

Prepare in Advance

Before the call, ensure you are in a quiet space with minimal background noise and minimal chances of interruptions. Prepare any necessary materials, such as pen and paper, and be ready at least 10 minutes in advance to avoid last-minute challenges. Having a peaceful environment will help you focus on the call and avoid distractions.

Be Fully Present

Effective listening involves being fully present and engaged in the conversation. Avoid multitasking, such as checking your phone or having side conversations. Give your undivided attention to the speaker, just as you would in an in-person meeting. This demonstrates respect and helps you absorb the information being shared.

Maintain Good Etiquette

If you are chairing the meeting, set the tone for effective listening. Demonstrate your engagement with visual cues, such as nodding, giving a thumbs up, or using hand gestures to signal agreement or ask for clarification. Encourage participants to do the same, creating an environment conducive to active listening.

Summarise and Clarify

Periodically summarising the key points discussed helps ensure everyone is on the same page. It also provides an opportunity to clarify any potential misunderstandings. This technique improves overall comprehension and ensures that the discussion stays focused and aligned.

Take Notes

Taking notes during the call helps you retain important information. It also allows you to fully listen without worrying about forgetting key points or questions you want to raise. You can refer to your notes when it's your turn to speak or contribute to the discussion.

Ask for Feedback

Encourage participants to provide feedback at the end of the call. This can be done individually via email or in a group setting. Feedback helps identify areas of improvement and ensures that everyone's perspectives are considered. It also allows you to gauge the effectiveness of the conference call as a whole.

By following these tips, you can enhance your listening skills during conference calls and gain valuable insights into the world of investments and the strategies of prominent investors.

Frequently asked questions