How to Analyse Any Stock (in 10 Minutes)

Ajouté : 2026-05-15

[00:00:05]All right, welcome back. Adam here, Rusmin, just the two of us. Victor is in the room over there having a meeting. We want to answer a question about how you can analyze a stock quickly. So, I think sometimes people will ask us, like, "Hey, how do you go know if a stock is a good stock, bad stock? Whether I should waste or spend my time uh you know, doing all this research on the stock."

[00:00:23]>> Yeah.

[00:00:24]So, we want to share the steps with you really, really quickly. We want to answer that question for you uh really, really fast. So, uh I think the first step when it comes to doing research on a stock is I would take a look at the financials. Would you agree?

[00:00:35]>> I would get a higher analyst and get the analyst to analyze for me. [laughter] That is a long way to do it.

[00:00:40]So, but I would take a look at financials.

[00:00:42]>> Yes, yeah. Yeah. Because sometimes if you were to look at a a company and then there's like annual reports and everything, it's a lot to read. So, sometimes, let's say, okay, this is how this is how I imagine it. Sometimes maybe someone tells you, "This is a really good stock. You should have a look at it." Or like you see this in the news and like, "This is a really interesting company."

[00:00:58]Before I really jump into the annual report or read all these things, I just go straight to the numbers. Because if the numbers don't look good, don't make sense, something jumps out as a red flag, that's it. I'm done. Yeah. They can be some fancy team or whatever, right? But >> Yeah. At the end of the day, I also, same as you, uh I will just look at the numbers. I look at the revenue, gross profit, net profit, all right? And then some companies they may not have net profit, all right? Especially in the in the early stage there, I will look at their cash flow. All right? If they don't even have cash flow, then I will just scrap them off.

[00:01:25]>> Mhm.

[00:01:26]All right. So, this is that just a quick way that before we actually go deeper into analyzing the company. Of course, if the companies are profitable, then you also want to look at like your uh return on equity ratio and make sure that the companies are not overly leveraged because these are the things that it could kill the company. Mhm.

[00:01:40]Okay. So, uh these are just some of the quick things that I will just glance through. And then uh then if it's very interesting, then I will start to look at the uh business model. So, like you would look at debt levels, whether the amount of debt is manageable. So, basically basically in when you look at financials, we just want to make sure that there's a growing trend. That this company is performing better and better.

[00:01:59]Every year.

[00:02:00]>> Growing Yeah, every year. Consistent, predictable. You don't want to see ups and ups and downs because even you don't want to invest in something like that.

[00:02:05]It's a little bit too much of a roller coaster. We like stable, predictable investments that grow. So the financials show that, then we go on to the next step, which is um then it must it must be a pretty interesting business to look at. Then we start to find out more. Uh just to jump in before we jump into that step is that if you want to take a look at financials and how you can look at all the numbers, you can go to financecharts.com. It's a free website. Almost every stock I wanted to find I can find it there.

[00:02:29]Yeah, so you can take a look at all the numbers there. It's a free site to check it out, financecharts.com. Once the numbers make sense, then we go straight into understanding what the business is all about.

[00:02:37]>> Yeah. And what I like to do nowadays is that usually I'll used to download the annual report and read like the section, the whole part about the business.

[00:02:45]Uh nowadays I just go straight to AI.

[00:02:47]Mhm. I'll send it to summarize. What is Tell me about the business and what's great about it. You know, engine on I mean not great about it, that's a bit of a leading factor question. But tell me about the business, basically. All right, then the AI is pretty accurate nowadays, right?

[00:02:58]>> Yeah, yeah, yeah. In te- in terms of like describing the business to you to help you understand it. So it gives you a summary and then once I read the summary, I say, "Oh, yes, I understand the business. I think I like its competitive advantages. I kind of understand how it's what how what is its revenue model."

[00:03:13]And then it's like, "Okay." Then I will go into the heavy work of going into the annual report. But nowadays, I go straight into AI first. It's a lot faster. Yes, [laughter] yeah. Because uh in the past, if you want to analyze some of these business models, it can get quite complicated. It takes a lot of time. Mhm. AI is really good at like summarizing all all these things. Uh and of course, uh sometimes you also can uh you need to identify what are the modes of that company.

[00:03:32]>> Yep. Right. And whether they still have a long runway to go. Okay, all the informations are all over the places, but again, AI will come and help you to summarize that. And if you like what you're reading, then you can go deeper and download the annual report to understand about the business. Because sometimes AI, they do halluc- hallucinate.

[00:03:46]>> Right. So that's a big problem and you need to verify some of this data. At the end of the day, you still go back to the annual report. Yeah. So what we're doing is just to save time. Look at the numbers first, do AI first, save time, so then you realize that, "Okay, only if something is really more concrete, then we go download the annual reports, maybe the quarterly earnings, and then we start reading about the business model and its economic modes, you know, and stuff like that.

[00:04:08]One thing that I really look out for is the risk factors because you need to be comfortable with the risk that this business faces. So, if you're not comfortable with that, you out. You don't You can't sleep at night. But, if you're saying, "I'm okay with all these risk factors. I'm comfortable with all these." Then it's like it's a It's a company that you're okay with. So, usually in the American annual reports anyway, they have a section listing all the risk factors.

[00:04:30]>> Yeah. And I'll read that.

[00:04:32]Cuz it's actually quite clear. It's quite fast. In Asia, the annual report doesn't have that. So, you really need to go and find a prospectus, IPO prospectus, which sometimes can be dated like 10 years ago, 20 years ago, right?

[00:04:43]So, nowadays, of course, you can use AI to ask, "AI, what are the risks of related to this company?" That's just to give you that quick idea and whether you're comfortable with it. If you're comfortable with it, of course, again, you go deep into the annual report.

[00:04:53]>> This is where we spend the most time.

[00:04:55]Where we really read, understand, because sometimes things Some companies are very technical. You need to understand the tech technical aspects of the business to understand its advantages and its risks. Cuz if you don't understand that, then you're not really clear about the risks, you know?

[00:05:09]So, sometimes you need to understand the business, and this is where it takes a lot of time. So, we just Basically, we just read the annual report at this point. Yeah. So, this is the heavy work that you need to do. And it's uh if you're actually doing stock picking, you need to do this part. Yeah. Right.

[00:05:23]So, once you concluded that uh this idea, this company have a lot of potential, that's the time where you put them in your watch list.

[00:05:29]>> Yep. All right. So, watch list is the companies, the list of companies that you are monitoring, all right, until you hit your target price. And this is where the last part where we comes in. You look at the valuation of company, all right? Is it the right time to buy? Mhm.

[00:05:39]So, a lot of times where you hear certain stock, people talk about them, uh and they're very popular. Most of the time you look Look the valuation, they are highly priced. Yep. They are overvalued, okay? So, uh uh and the best time is of course you the best way to deal with this is of course you just put in the watches and monitor until it hit the price where you want to buy. Okay, so and by do and if you want to do that, of course you must know how to value the company. Mhm. Okay, so you're not going to ask the AI to do it that for you, okay? Because you need to learn uh there are different type of companies that require different type of valuation metric, right? And you need to find uh what valuation metric fit that company. And this business model, right? It's It's different for Yeah. different companies. So, AI right now, I don't think they can do that. So, that still requires, I think, uh understanding of certain knowledge on how do we go about uh valuing the companies. Yeah. And I think I mean AI is one thing. Even if you give I give you a chart showing its valuation multiple or something, you must know how to interpret that chart. Yeah, and and bring it back to its business model.

[00:06:37]Does it make sense according to its growth and its risk? Because those are just There's just data. How you interpret the data is a different thing altogether. And you need to learn how to do it. And we actually cover this in Alpha Quadrant. Yeah. So, that's coming out uh right now. So, it's open till the 31st of May. And you actually sign up for a course and we'll teach you how to look for good companies like this. So, these are all the steps that we teach. How to do it exactly. Uh and then you can basically you want to find a company that's like a stalwart. They can grow like maybe 15, 20% a year on average over the long term or maybe even like a multi-bagger. A fast grower that can maybe 10 times your investment. So, these are stuff that we look at in Alpha Quadrant. Do check it out at alphQuadrant.com. Uh and we also teach you how to value a stock like you said.

[00:07:19]Yeah, I don't think AI can do it. And even if AI could do it, you still need to verify yourself. So, we teach you how to plot a valuation chart and do it for yourself as well. So, a good point that you mentioned is that usually when you hear someone tell you about a stock, it's usually it's run up in price already. So, It could be a meme stock.

[00:07:35]Yeah, or a meme stock. And you look at the fundamentals and then realize it's really a crap stock. Yeah, but sometimes it's like you only hear about it in the news because it's gone up in price and it's maybe a good company. Yeah. You go through all the steps that we talked about just now. Good company, but then the this last step of valuation is so important because if you even if it's a good company getting the wrong price, Mhm. it becomes a bad investment. Yeah. So, that's very, very important. So, uh knowing how to value a stock very, very important.

[00:08:00]>> Yeah. And of course, most importantly, I think the course is also going to teach you how to manage your portfolio, right?

[00:08:04]Because it's very risky to only invest in one company Mhm. where you have your money, you pump everything to one, no.

[00:08:10]Uh investing, I think you need to learn how to manage risk from a portfolio level. Mhm. Yeah, because every stock can go wrong, right? So, do you how do you manage that risk, right? So, in this Alpha Quadrant course, I think we'll talk about portfolio management. It's a very important skill set to have as an investor as well. Yeah. All right. So, just to summarize, this is how we analyze the stock uh really, really quickly. At the beginning, we look at the financials, see if we like the numbers, then we go deeper into >> the business and we use AI to do that first really quickly, but once we see something concrete, we go into the annual reports and the risk factors and the economic moats to really understand.

[00:08:41]And once that is a good business, Yeah.

[00:08:44]we go into valuation because we want to make sure it's a good investment as well.

[00:08:46]>> Yeah. So, that's basically a summary of what you can do really quickly. Uh do check out the resources that we have for you like financial charts. I think there's a free website. Uh use your favorite AI model to help you with your investments as well, but you can't do the you can't shortcut the process and you still need to go through the annual report to really understand business cuz you're already putting your money into this. Let's say even you're starting out, you think it's a thousand bucks, right? But as you grow richer and you have more money in your portfolio, one investment could be like 10,000, 20,000, 50,000. You got to be really sure about what you're putting in Yeah.

[00:09:16]if you're picking a stock. So, it's real money involved, do it right. So, uh like I said, check out alphacourses.com. It's open till 31st of May. Uh do check it out how you can find great companies for your portfolio that can grow 10 times over the period of time to grow your to boost your portfolio returns. All right.

[00:09:32]So, this is what we wanted to cover for how to analyze a stock really, really quickly. Uh any questions about this?

[00:09:39]Feel free to answer put them in the comment section. We'll answer them for you as well. We're happy to answer more questions.

[00:09:43]But yeah, we want to ask you answer this question because some of you've been asking, how do you do it? All right, so this is how we basically do it really, really quickly. All right, anything else you want to add? Yeah, that's all.

[00:09:53]That's pretty much it. All right, so my name is Adam. Reuben, thanks for joining us for this really quick you know, ask us ask a question kind of segment. Put them in the comment section anything you you you want to ask and of course you like this video, please hit the like button.

[00:10:06]Do check out alphacursion.com. Open to 31st May this year. Open to once a year.

[00:10:10]And you know, many more of these videos coming up and we'll see you again.