I have delivered the first Vienna Value Investing meetup session, and this is my slides for every one to share. I'd appreciate any feedback! :)

1. Vienna Value Investing
Meetup
PRESENTED BY MARTIN BODOCKY
SUPPORTED BY

2. Why this meetup?
BUILDING COMMUNITY TO HELP EACH OTHER
WE WANT TO BUILD THE RIGHT TOOL FOR VALUE
INVESTORS
THIS IS AN OPEN DISCUSSION MEETUP, PLEASE ASK
WHENEVER YOU LIKE

3. Who am I?
MARTIN BODOCKY
CEO OF MINT IT
AI AND FINTECH GEEK

4. Disclaimer
WE ARE NOT INVESTMENT ADVISORS.
WE ARE NOT RECOMMENDING TO BUY OR SELL.
ANY DECISION YOU CONCLUDED FROM THIS SESSION
IS YOURS NOT OURS, YOU ARE IN CONTROL.

5. Agenda
1.) INTRODUCTION INTO VALUE INVESTING
2.) SIMPLE VALUATION PROCESS
3.) NETWORKING

7. Why should we invest?

8. Investing is risky business
• INVEST MONEY WHICH YOU CAN AFFORD TO LOSE
• MARKET CAN REMAIN IRRATIONAL LONGER THAN
YOU CAN REMAIN SOLVENT
• DIVERSIFICATION IS A MUST
• PREPARE BUY AND EXIT STRATEGY

10. What is value investing
• VALUE INVESTING IS PROCESS OF DISCOVERING
TRUE BUSINESS VALUE VIA FUNDAMENTAL
ANALYSIS
• VALUE INVESTING IS BASED ON FACTS
• VALUE INVESTING TRIES TO IGNORE VOLATILITY ON
MARKET

11. Value investing VS Day Trading
• TRADING IS BASED ON TECHNICAL ANALYSIS AND
MOMENTUM
• TRADING IS NOT BASED ON TRUE VALUE OF
BUSINESS
• TRADING IS MORE SPECULATIVE
• VALUE INVESTING IS BASED ON FACTS

12. Value of patience

13. Investing homework
• COMPOUND INTEREST – LET MONEY WORK FOR YOU
• KNOWING YOURSELF – RISK CAPACITY
• PREPARE FOR BAD OUTCOME – DON’T RISK MONEY
YOU CANNOT LOSE
• DIVERSIFICATION – DON’T PUT ALL IN A ONE BASKET

14. How to learn to value invest
• LEARN PRINCIPLES OF FUNDAMENTAL ANALYSIS
• START TO VALUE COMPANIES
• EXECUTE YOUR IDEAS (WITH VIRTUAL MONEY FIRST)

15. Basic terminology 1/2
• MARKET CAP – COMPANY SIZE, RISK OF DEFAULT
• OUTSTANDING SHARES – ALL SHARES ISSUED
• TOTAL REVENUE = COMPANY SALES
• NET INCOME = TOTAL REVENUE – OPERATING
EXPENSES – TAX
• OPERATING INCOME = TOTAL REVENUE – OPERATING
EXPENSES
• DIVIDENDS – RETURN ON INVESTMENT

16. Basic terminology 2/2
• DEBT – LOANS, BONDS, ALL LIABILITIES
• NET DEBT = LIABILITIES – (CASH AND CASH
EQUIVALENTS)
• NET CASH =(CASH AND CASH EQUIVALENTS) -
CURRENT LIABILITIES
• ENTERPRISE VALUE = MARKET CAP + TOTAL DEBT –
(CASH AND CASH EQUIVALENTS)

17. Fundamental analysis
• BALANCE SHEET
• INCOME STATEMENT
• CASH FLOW
• MOAT, COMPETITIVE ADVANTAGE OR FRANCHISE
• FUTURE GROWTH

19. In which company will you invest?
Company A Company B
Share Price $12 $22
Market Cap $720m $440m
Debt $100m $200m
Cash & Equiv. $50m $120m
Net Debt -$50m -$80m
Revenue $75m $100m
Net Income $40m $30m
Enterprise Value $790m $420m

20. ARE WE ABLE TO DECIDE SOLELY ON
BALANCE SHEET OR INCOME STATEMENT?

21. Ratios and margins to rescue
• DEBT / CASH
• ENTERPRISE VALUE / CASH
• EARNINGS PER SHARE = (NET INCOME –
DIVIDENDS)/NUMBER OF OUTSTANDING SHARES
• DEBT / OPERATING INCOME
• ENTERPRISE VALUE / OPERATING INCOME
• NET INCOME / REVENUE
• AND MORE.

22. Fiat VS Tesla 1/2
Fiat – 10.44 Euro Tesla - $254.61
Market cap 13b Euro $41,01b
Debt 83,491b Euro $9,912b
Cash & Equiv. (Cash) 17,603b Euro $3,084b
Enterprise
Value(EV)
78,888b Euro $47,833b
Debt / Cash 4,74 3,21
EV / Cash 4,48 15,51

23. Fiat VS Tesla 2/2
Fiat – 10.44 Euro Tesla - $254.61
Revenue 81,299b Euro $4,715b
Operating Income (EBIT) 3,656b Euro -$0,400b
Net Income 1,391b Euro -$0,553b
Earnings per Share(EPS) 1,08 Euro -$3,43
Debt / EBIT 22,83 Negative
Net Income / Revenue 0,017 = 1,7 % Negative

24. What matters in value investing? 1/2
• GOOD RESEARCH
• UNDERSTANDING INDUSTRY
• REVENUES
• P/E, EV/EBIT RATIOS

25. What matters in value investing? 2/2
• EXPERIENCE
• INTUITION
• PRACTICE

27. How to predict future?
• DON’T SPECULATE
• UNDERSTAND BUSINESS AND VALUE STREAMS
• UNDERSTAND STOCK VOLATILITY
• BUILD A HABIT
• DON’T FOLLOW ESTIMATION OF PROFESSIONALS!
• ALWAYS DO RESEARCH

28. Next sessions
• VALUE COMPANY IN SPECIFIC STAGE – GROWTH,
MATURITY
• SPECIFIC INDUSTRY SESSIONS(AUTO, BIOTECH,
SOFTWARE)
• PLEASE PARTICIPATE