wall street institute - stock market workshop 2010

8/14/2019 Wall Street Institute - Stock Market Workshop 2010

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And

Present:


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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


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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.


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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


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What is the Stock

Market?

Stock Market - organized market forthe sale and purchase of securitiessuch as shares, stocks, and bonds.

Source: Britannica


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Where is the Stock

Market? USA: New York Stock Exchange 11 Wall Street, NewYork

Brazil: BOVESPA Rua XV de novembro, 275, Centro,So Paulo


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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


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Companies Present in

BOVESPA


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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!!!


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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.


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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.


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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


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Why invest in stocks?

Because it is one of the mostprofitable and transparent ways ofinvesting your money.

Complete control over yourinvestments.


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Why invest in stocks

Manage your futureat your own pace.

Invest in solidcompanies, withsolid earnings.


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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%


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Opportunity (Interest Ratesfalling)

Intrest rate expectation:

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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


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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


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Retrospective 2009


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What to expect in 2010

Brazilian GDPGrowth around 5%

Dolar vs Real:between R$1.70and R$1.80

Inflation: controledaround 4% to 5%


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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


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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


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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!


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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


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Investment Options

Stock Porfolio

Stock Funds 142% in 2009

Investment clubs minimuminvestments of R$100

Fixed Income

Financial Advisory


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Compound Interest

The mostpowerful forcein theuniverse iscompoundinterest

Albert Einstein


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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!!!


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The Importance of Good

Guidance Do not venture alone Learn to invest with professionals


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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/


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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

wall street institute - stock market workshop 2010

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