Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which kind of visualization can be constructed? Need help proposing one and making one for a company, note it can be any kind of company
Which kind of visualization can be constructed? Need help proposing one and making one for a company, note it can be any kind of company with any type of data made to the public to help construct a visualization that applies to one of the criteria.
Task 4.1: Metric Visualization For Task 4.1, select one of the criteria from Warren Buffet's methods shown on the following page (i.e., Criterion 4a to 4d, below) and propose a visualization (e.g., a type of chart) that would best inform that criterion. Using data available for your assigned stock, prepare a visualization that will allow your stock to be evaluated using that Buffet investment perspective. We are deliberately not telling you a recommended visualization as there are many choices and the stock and criterion will dictate what type of visualization makes sense. Select one (1) of the following criteria adapted from material originally published in the book Warren Buffet Way. Criterion 4a: Is the company conservatively financed? Buffett seeks out companies with conservative financing, such as companies with total liabilities relative to total assets that are below the median for their respective industry, low debt to capitalization or low debt to equity. Criterion 4b: Are earnings strong and do they show an upward trend? Buffett looks for companies with strong, consistent, and expanding earnings. We screen for companies with seven-year earnings per share growth greater than 75% of all firms and consistent earnings (3 years). Criterion 4c: Has the company been buying back its shares? Buffett prefers that firms reinvest their earnings within the company, provided that profitable opportunities exist. When companies have excess cash flow, Buffett favors shareholder-enhancing maneuvers such as share buybacks. Criterion 4d: Is the company's return on equity above average? Buffett considers it a positive sign when a company is able to earn above-average returns on equity. Mary Buffett indicates that an average return on equity is approximately 12% over 3 years. Task 4.1: Metric Visualization For Task 4.1, select one of the criteria from Warren Buffet's methods shown on the following page (i.e., Criterion 4a to 4d, below) and propose a visualization (e.g., a type of chart) that would best inform that criterion. Using data available for your assigned stock, prepare a visualization that will allow your stock to be evaluated using that Buffet investment perspective. We are deliberately not telling you a recommended visualization as there are many choices and the stock and criterion will dictate what type of visualization makes sense. Select one (1) of the following criteria adapted from material originally published in the book Warren Buffet Way. Criterion 4a: Is the company conservatively financed? Buffett seeks out companies with conservative financing, such as companies with total liabilities relative to total assets that are below the median for their respective industry, low debt to capitalization or low debt to equity. Criterion 4b: Are earnings strong and do they show an upward trend? Buffett looks for companies with strong, consistent, and expanding earnings. We screen for companies with seven-year earnings per share growth greater than 75% of all firms and consistent earnings (3 years). Criterion 4c: Has the company been buying back its shares? Buffett prefers that firms reinvest their earnings within the company, provided that profitable opportunities exist. When companies have excess cash flow, Buffett favors shareholder-enhancing maneuvers such as share buybacks. Criterion 4d: Is the company's return on equity above average? Buffett considers it a positive sign when a company is able to earn above-average returns on equity. Mary Buffett indicates that an average return on equity is approximately 12% over 3 yearsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started