I'm worried about my retirement, so I started investing in stocks DAY 51 [4 points to look at in a representative]

― Walking with Haru, Age 60 Investment Record Day 51 ―
If you look at the president, you can see the company

I watched one video today as well.

The theme was "4 points to look at in a representative."

In DAY 49 and DAY 50, I learned to choose a simple business model.

But actually, there is one more important thing to check.

It is looking at the president.

Many investors in the world focus on financial statements and numerical analysis.
However, by paying attention to the president's statements and actions, you can get ahead of many other investors.

I learned that method today.

📍 Current location on the roadmap

How to identify a simple business (DAY 50) → Looking at the representative (Today) → Thinking about future PER

📚 What I learned today: 4 points to look at in a representative

① The representative's background

Research what kind of experience the president had before creating the current company.

Whether they have practical experience in that industry is directly linked to the feasibility of the business.

For example, if the president has experience working at a company in that industry and started their own business based on the knowledge cultivated there, it can be judged that their understanding of the business model and execution ability are high.

The number of years from establishment to listing is also a measure of the manager's excellence.

② Do they intend to make a profit?

This is a point that is surprisingly often overlooked.

Whether a company makes a profit is actually something the president can decide.

If they prioritize increasing sales and continue to spend costs on advertising and upfront investment, they won't make a profit. That in itself is not a mistake, but it is difficult for investors who are focused on profits to evaluate it as a stock price.

Therefore, you need to confirm whether the president has the intention to make a profit.

The way to check is to look at the president's statements.

Whether they are personally announcing things like "we will make the operating profit margin X%" at financial results briefings, etc.
Companies where the president speaks out on YouTube or in IR videos are easier to follow for information.
Conversely, companies where the president does not speak out are a bit more difficult for beginners.

③ Whether they keep their promises

In addition to their statements, check whether they have actually executed them in the past.

The way to check is the earnings forecast revision table in the Stock Scouter that we learned about on DAY 48.

If there is a history of steadily clearing the forecasts they have issued in the past, you can trust their future statements as well.

Conversely, if there are many revisions, you can judge that the reliability of their statements is low.

④ Whether they are serious about wanting to raise the stock price

The final point to check is how much of the company's stock the president themselves owns.

You can check this in the shareholder composition section of the Stock Scouter that we learned about on DAY 47.

If the president owns 50% or more of the stock, an increase in the stock price is directly linked to an increase in the president's own assets.

In other words, the interests of the president and the investors are aligned.The president of such a company has a very strong motivation to increase performance.

The president of such a company has a very strong motivation to increase performance.

💬 Satsuki's questions and Haru's answers

🌸 Me: "Haru-san, where can I see what the CEO is saying?"

🌸 Me: "Is looking at the CEO more important than financial analysis?"

Looking at the CEO.

Honestly, I had never thought about that before I started studying stocks.

By the way, today I actually watched a financial results briefing for a company I'm interested in on YouTube.

I never thought I would use YouTube for investment study.

Because until now, I had only ever used it for entertainment.

I was surprised that videos of CEOs speaking themselves could be seen so easily.

I thought investing meant analyzing financial statements and numbers.

But now it's different.

Understand the business, look at the CEO, and check their statements.
Just by doing that, there is a possibility of acting ahead of many other investors.

It wasn't a difficult thing to do.

📝 Today's summary in one sentence

4 points for evaluating a representative:
Background, will to generate profit, keeping one's word, and shareholding ratio.

A CEO's statements can be checked on YouTube or in IR videos.

Look at the CEO before the numbers.
That is the beginner's advantage.

I watched the video, took notes, and summarized them into an article.
A total of 1 hour.

1 hour every day. That's all it takes.

I believe that continuing is my greatest talent.

Next time, I'll be 'thinking about future PER'.
I'm finally going to learn the last piece of the puzzle for calculating future stock prices.

I will continue tomorrow as well.

📣 'Friends Walking with Haru' is currently in preparation

I am creating a place where friends who have started investing just like me
can report their progress and support each other in continuing.

If you would like to participate, please let me know in the comments🌸

📚 Click here for the related article for DAY 51

#FundamentalAnalysis #RepresentativeAnalysis #InvestmentBeginner #InvestingInYour60s #RetirementAnxiety #StartedWithAI #WorkingTogetherWithHaru