-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
1/30
And
Present:
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
2/30
Wall Street Institute School of EnglishCenters: Berrini, Chacara Santo Antonio & Vila Olimpiawww.wallstreetinstituteschool.com.br
Hera InvestimentosR. Gomes de Carvalho, 1507, 2 andar, Vila Olmpia
THE STOCK MARKET
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
3/30
Buy a Dollar for anickel and you will berich.
It's far better to buy awonderful company at
a fair price than a faircompany at awonderful price.
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
4/30
Stock Market Workshop
1. What, where, and who
2. What is a stock
3. How does the stock market work4. Why invest in companies
5. Last Years Stock Markets Performance
6. Tendencies for 2008
7. The importance of good guidance ininvesting
8. How to invest
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
5/30
What is the Stock
Market?
Stock Market - organized market forthe sale and purchase of securitiessuch as shares, stocks, and bonds.
Source: Britannica
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
6/30
Where is the Stock
Market? USA: New York Stock Exchange 11 Wall Street, NewYork
Brazil: BOVESPA Rua XV de novembro, 275, Centro,So Paulo
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
7/30
BOVESPA
The Brazilian Stock Exchange (Bolsa de Valores de So Paulo) is themain stock exchange in Latin America, and negotiates, regularly,around 5.5 billion Reais a day.
Are regularly negotiated:
Stocks from open-market companies;
Stock options;
Subscription bonuses and fund quotas;
Bonds;
Futures and Derivatives;
Commodities
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
8/30
Companies Present in
BOVESPA
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
9/30
Who Invests in Bovespa?
Individuals or institutions who apply theirresources in search of short, medium and
long term gains through brokers or
brokerage firms.
YOU arethe
investor!!!
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
10/30
What is a Stock(Share)?
A stockor share is a bond issued by anopen market company, which represents asmall part of that companys capital value.
Ordinary Stocks (ON) type of stockthat concedes the right to vote in thecompanys council
Preferencial Stocks (PN) type of stocks
that concedes the right to preference inthe receiving of results (dividends, etc), orrestitution of the capital invested in caseof the companys closure. These do notgrant the right to vote in council.
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
11/30
Once upon a time in a village, a man appeared and announced to thevillagers that he would buy monkeys for $10 each.
The villagers seeing that there were many monkeys around, went outto the forest, and started catching them.
The man bought thousands at $10 and as supply started to diminish,the villagers stopped their effort. He further announced that hewould now buy at $20.
This renewed the efforts of the villagers and they started catchingmonkeys again.
Soon the supply diminished even further and people started going
back to their farms. The offer increased to $25 each and the supply ofmonkeys became so little that it was an effort to even see a monkey,let alone catch it!
The man now announced that he would buy monkeys at $50 !However, since he had to go to the city on business, his assistantwould now buy on behalf of him.
In the absence of the man, the assistant told the villagers. "Look atall these monkeys in the big cage that the man has collected. I willsell them to you at $35 and when the man returns from the city, youcan sell them to him for $50 each."
The villagers rounded up with all their savings and bought all themonkeys.Then they never saw the man nor his assistant, only monkeyseverywhere!
Now you have a better understanding of how the stock market works.
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
12/30
How does the Stock
Market Work?Investors give buy and/or sell ordersdirectly to a stock broker in a stockbrokerage firm, and/or through a
homebroker
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
13/30
Why invest in stocks?
Because it is one of the mostprofitable and transparent ways ofinvesting your money.
Complete control over yourinvestments.
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
14/30
Why invest in stocks
Manage your futureat your own pace.
Invest in solidcompanies, withsolid earnings.
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
15/30
Why invest in Stocks
IBOV Index: represents an average ofthe value of the most negotiated stocksin the Brazilian stock exchange.
Stocks have gained considerable valuein the past years
IBOV Index: 28% in 2005, 33% in 2006,
44% in 2007, -40% in 2008 and 70, Interest Rates less than 1%
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
16/30
Opportunity (Interest Ratesfalling)
Intrest rate expectation:
Brazilian Interest Rates
0
5
10
15
20
25
30
19/7/20
00
19/11/20
00
19/3/20
01
19/7/20
01
19/11/20
01
19/3/20
02
19/7/20
02
19/11/20
02
19/3/20
03
19/7/20
03
19/11/20
03
19/3/20
04
19/7/20
04
19/11/20
04
19/3/20
05
19/7/20
05
19/11/20
05
19/3/20
06
19/7/20
06
19/11/20
06
19/3/20
07
19/7/20
07
19/11/20
07
19/3/20
08
19/7/20
08
19/11/20
08
19/3/20
09
19/7/20
09
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
17/30
Retrospective 2009
Extraordinary year for the stock market
Barack Obama elected President of the USA
Commodities boomed
Stocks SOARED
PETR4: 59,5%, VALE5: 75,9%, BVMF3:101,5%, GGBR4 91,5%, GFSA3: 169,5%,
TAMM4: 102%, LLXL3: 593,3%, etc
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
18/30
Retrospective 2009
Record homebroker activity: more than700,000 investors
Brazil is considered the Belle of the Ball
Third and final Investment Grade
China grew more than expected
Brazilian Automotive industry sets a new
record USA loses the leadership in car production
to China
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
19/30
Retrospective 2009
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
20/30
What to expect in 2010
Brazilian GDPGrowth around 5%
Dolar vs Real:between R$1.70and R$1.80
Inflation: controledaround 4% to 5%
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
21/30
What to expect in 2010
Interest Rates around 9% to 9,5% by the end ofthe year
Expect higher volatility in the stock marketsdue to elections
USA economy to grow around 2% but with alingering fear in the banks results
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
22/30
What to expect in 2010
We expect a positive year for the Brazilianstocks and economy
IBOV to grow in between 20% to 30%
Banks will lend more money for consumer credit
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
23/30
The Importance of Good
Guidance Know your broker
Learn how to developyour own strategy
according to yourinvestment profile
Dont be fooled bycheap tarifs: no one
gains money because ofa discount!
Timing is VERYimportant!
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
24/30
How should I Invest?
Following trends in market prices toprotect your patrimony
Make your own portfolio according tothe market timing
Diversify
Plan to buy stocks everymonth/trimester/semester/year
Have an Advisor
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
25/30
Investment Options
Stock Porfolio
Stock Funds 142% in 2009
Investment clubs minimuminvestments of R$100
Fixed Income
Financial Advisory
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
26/30
Compound Interest
The mostpowerful forcein theuniverse iscompoundinterest
Albert Einstein
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
27/30
Compound Interest
Exercise 1 Inicial Inv.: R$0.00
Montly Inv.:
R$200,00 Monthly Interest:
1,1%
Result:R$1.050.000 in 31
years!!!!
Exercise 2 Inicial Inv.:
R$10.000
Monthly Inv.:R$500.00
Montly Interest:0,6%
Result:
R$520.000 in 26 yearsand R$ 1.000.000 in
35 years!!!
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
28/30
The Importance of Good
Guidance Do not venture alone Learn to invest with professionals
-
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
29/30
Hera Investiments
R. Gomes de Carvalho, 1507, 2 andar
Vila Olmpia
Fone: 11 3014 4700http://herainvestimentos.com.br/
http://herainvestimentos.com.br/http://herainvestimentos.com.br/ -
8/14/2019 Wall Street Institute - Stock Market Workshop 2010
30/30
Wall Street Institute
Unidade Berrini
Av. das Naes Unidas, 12.901
Shopping Naes Unidas, Loja 146
5102.2600
Unidade Chacara
R. Alexandre Dumas, 1.901
Ed. Paramount, 1o.SS
5181.7060
Unidade Vila Olimpia
R. Gomes de Carvalho, 1.327
Loja trra
3045.8888
ll i i h l b