Investing Via The Internet: A Guided Tour of AAII's Top-Rated - PDF document

Investing Via The Internet: A Guided Tour of AAII's Top-Rated Investment Web Sites John Bajkowski Vice President, Senior Financial Analyst, AAII johnb@aaii.com 1 Presentation Focus & Outline  Present the best Web sites to aid you in:  Stock Screening  Stock Analysis  Mutual Fund Screen & Analysis  Portfolio Management & Tracking 2

Top Comprehensive Sites  MSN Money ~ Free  moneycentral.msn.com  SmartMoney ~ Free to $108/yr.  www.smartmoney.com  Yahoo! Finance ~ Free to $131.41/yr.  finance.yahoo.com Stock Screening  A computerized screening program can be used to locate/analyze stocks in an organized, systematic, and disciplined fashion 4

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Allows for comparison of selected data points against industry and S&P 500 11 benchmarks Provides screening on a variety of earnings estimate data 12

Morningstar www.morningstar.com Free screening tool very basic 13 Morningstar Premium screener is very advanced and useful 14

Morningstar Premium Stock Screener ($174/yr.) covers over 800 fields. Allows for comparison against other fields and benchmarks. Screens can be saved for use at a later time. 15 16

SmartMoney.com www.smartmoney.com Screening on is fee- based ($58/year). Covers over 150 fields. Custom variables can be created. Allows for comparison against other fields and benchmarks. Screens can be saved for use at a later time. Results can be saved as a spreadsheet. 17 Popular Approaches  AAII Journal/Computerized Investing has examined the characteristics of successful investors  Tracking performance of our interpretation of these approaches in Stock Investor  Companies passing screens and chart of results available on AAII Web site within “AAII Stock Screens” segment in the Portfolios section 18

AAII.com www.aaii.com Screens are located within “AAII Stock Screens” segment of Web site 19 20

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25 AAII Journal Current and past issues of the AAII Journal can be viewed online 26

Top Stock Screening Sites  MSN Money ~ Free  moneycentral.msn.com  Morningstar ~ Free to $174/yr.  www.morningstar.com  SmartMoney ~ $58/yr. to $108/yr.  www.smartmoney.com Fundamental Analysis  The process of determining the value of a stock based on study of financial data  Attempt to determine an “intrinsic” value of stock and compare this to current market price  If current price is below intrinsic value  Buy  If current price is above intrinsic value  Sell 28

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Yahoo! Finance finance.yahoo.com 33 34

Reuters www.reuters.com/finance/stocks 35 36

37 Yahoo! Finance finance.yahoo.com 38

MarketWatch.com www.marketwatch.com 39 Morningstar Alerts 40

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45 Morningstar www.morningstar.com 46

Moneychimp www.moneychimp.com 47 48

49 Reuters www.reuters.com/finance/stocks 50

51 Yahoo! Finance finance.yahoo.com 52

53 Reuters www.reuters.com/finance/stocks 54

SmartMoney.com www.smartmoney.com 55 56

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SmartMoney.com www.smartmoney.com 59 60

Morningstar www.morningstar.com 61 Yahoo! Finance finance.yahoo.com 62

63 Top Stock Valuation & Ratings  MSN Money ~ Free  moneycentral.msn.com  Morningstar ~ Free to $174/yr.  www.morningstar.com  Moneychimp ~ Free  www.moneychimp.com  ValuEngine.com ~ $199.95/yr.  www.valuengine.com

65 FreeStockCharts.com www.freestockcharts.com 66

Prophet.net www.prophet.net 67 StockCharts.com www.stockcharts.com 68

Top Stock Charting & Technical Analysis  FreeStockCharts.com ~ Free  www.freestockcharts.com  Prophet.Net ~ Free to $649.50/yr.  www.prophet.net  StockCharts.com ~ Free to $369.35/yr.  www.stockcharts.com Mutual Fund Screening & Data 70

MSN Money moneycentral.msn.com 71 72

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Top Mutual Fund Sites  Morningstar ~ Free to $174/yr.  www.morningstar.com  MSN Money ~ Free  moneycentral.msn.com  SmartMoney ~ Free to $108/yr.  www.smartmoney.com  Yahoo! Finance ~ Free to $131.41/yr.  finance.yahoo.com On-Line Portfolio Management  Best used as a tool to keep you abreast of what is happening with your portfolio and notify you of any events that might affect your portfolio  On-line portfolio managers are not typically replacements for software  They cannot do what software can do  Limited report capabilities, few return calculations 78

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81 Morningstar www.morningstar.com 82

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Top Portfolio Tracking Sites  Morningstar ~ Free to $174/yr.  www.morningstar.com  MSN Money ~ Free  moneycentral.msn.com  RiskGrades ~ Free  www.riskgrades.com  SmartMoney ~ $58/yr. to $108/yr.  www.smartmoney.com AAII’s Guide to the Top Investment Web Sites  Appears annually in September issue of the AAII Journal  Available at AAII Web site:  http://www.aaii.com/guides/webguide/index.cfm 88