Investing 101 - PowerPoint PPT Presentation

Loading...

PPT – Investing 101 PowerPoint presentation | free to view - id: c4d3-N2U0M



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Investing 101

Description:

'A Penny Saved is a Penny Earned' When is the right time to start saving? ... Stores will be using them to expand the consumer experience in Macy's stores. ... – PowerPoint PPT presentation

Number of Views:111
Avg rating:3.0/5.0
Slides: 51
Provided by: stevenno
Category:
Tags: investing | macys

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Investing 101


1
Investing 101
  • Investing for the Long Term
  • Steven Novakovic
  • David Rogal

2
A Penny Saved is a Penny Earned
  • When is the right time to start saving?
  • The power of compound interest
  • What are my best investment options?
  • Risk attitude determines your investment vehicle
  • A guide to building a successful portfolio
  • Think long term and stay diversified

3
The Power of Compound Interest
FV (1r)t
4
The Numbers do not Lie!
  • If you invest 1,000 today, with a modest return
    of 8 per year, it would be worth . . .
  • 1,166 in two years
  • 2,159 in ten years
  • 6,849 in twenty-five years
  • 46,902 in fifty years
  • Your investment would double in nine years and
    grow more than 37 times by the typical retirement
    age of 65

5
Low Risk, Low Return
  • Savings Accounts
  • 1 3 per year
  • Checking Accounts
  • 1 3 per year
  • Certificates of Deposits (CDs)
  • 1 4 per year
  • Depends on time commitment

6
Low - Medium Risk, Medium Return
  • Treasury Bonds
  • 3 5 per year
  • Municipal Bonds
  • 4 6 per year
  • Tax sheltered
  • Investment Grade Corporate Bonds
  • 4 7 per year

7
Medium Risk, Medium High Return
  • Index Funds
  • SP 500, 15 years, AAR 12 per year
  • Mutual Funds
  • 8 10 per year, average
  • Fund of Funds
  • 5 7 per year
  • REITs
  • Variable

8
High Risk, High Return
  • Equities
  • IPOs
  • High Yield Bonds
  • Derivative Instruments Hedge Funds
  • Angel Investing
  • Speculative Real Estate
  • Exchange Markets
  • Developing Markets

9
  • With the knowledge of various investing
    instruments and their associated risks...
  • Begin to construct your personal portfolio around
  • Specific risk attitude
  • Capital constraints

10
Equities
  • Common Stock
  • Voting rights
  • Preferred Stock
  • No voting rights
  • Dividend every year

11
Investing in EquitiesPortfolio Management
  • Value vs. Growth
  • Large Cap vs. Small Cap
  • Long Term vs. Short Term
  • Risk Profile
  • Industry Diversification

12
Before you Invest...
  • Analysis and Research
  • Website
  • Annual / Quarterly Reports
  • News
  • Financials
  • Numbers
  • Industry
  • Economy
  • Lookout for Red Flags

13
Take the Next Step...
  • Come to CIC Meetings
  • Check out the Parker Center
  • Pick up the Wall Street Journal
  • Watch the News
  • Macro trends govern overall movement
  • Courses, books, periodicals
  • Internet

14
Cosi Inc.
15
Profile
  • Restaurant/coffee chain known for its sandwiches.
  • Recently began to franchise.
  • Federated Department Stores will be using them to
    expand the consumer experience in Macys stores.

16
Income Statement
17
Balance Sheet
18
Marvel Enterprises Inc
19
Profile
  • Entertainment company with a proprietary library
    of over 4,700 characters.
  • Includes Spider-Man, X-Men, Hulk, Blade,
    Daredevil, The Punisher, Captain America, The
    Fantastic Four, Silver Surfer, Iron Man.
  • Makes most of its revenue from licensing these
    characters.
  • Revenue also comes from toys and from comic book
    sales.

20
Income Statement
21
Balance Sheet
22
Microsoft
23
Profile
  • Develops, manufactures, licenses and supports a
    wide range of software.
  • Windows has 95 of the desktop market
  • That means any new product has 95 market
    leverage
  • Research and development is 4.66 billion!
  • 32 billion in revenue.

24
Income Statement
25
Balance Sheet
26
Pixar Inc.
27
Profile
  • Pixar is a digital animation studio with the
    creative, technical and production capabilities
    to create a new generation of animated feature
    films.
  • Has created and produced Toy Story, A Bug's Life,
    Toy Story 2, Monsters, Inc. and Nemo that were
    marketed and distributed by The Walt Disney
    Company (Disney).
  • Have hit a rough patch with Disney and a new
    contract is on the horizon.

28
Income Statement
29
Balance Sheet
30
Vodafone Group
31
Profile
  • Provides a range of mobile telecommunications
    services, including voice and data
    communications.
  • Largest telecom in the world.
  • 28 nations focused in America, Europe and Asia
  • 62 billion revenue.
  • 45 interest in Verizon Wireless.

32
Income Statement
33
Balance Sheet
34
Case Study on Pixar Animations (PIXR) Jim Cao
Stop Limit Set _at_ 74
Buy Presentation Limit Set at 62.00
Bought at 62.00
35
Initial Buy Reasons
  • Premium Valuation Warranted
  • Record of big hits Highly profitable
  • No debt Safe
  • King of the hill
  • Solid Management
  • Steve Jobs and PIXR / AAPL
  • Anticipation of New Deal with DIS or some other
    studio that would change the distribution of
    profits from films.
  • Predicted run up for The Incredibles

36
What Has Changed?
  • Valuation fairer
  • Finding Nemo and other movies set DVD sales
    record over the summer
  • Still free of debt
  • Still undisputed leader, but some competitors
    getting stronger.
  • Lucas in asia
  • DreamWorks Shrek II
  • Disney?
  • Solid Management
  • Steve Jobs is a lucky , smart man
  • Eisner going home in September 2006 (Could be
    even earlier now)
  • Run up for The Incredibles is incredible.
  • CIC is richer.

37
Careers in Financial ServicesIndustry
  • Jon Gilman

38
KEY DECISIONS
  • Buy-Side or Sell-Side?
  • Sales Trading or Investment Banking?
  • Fixed Income or Equities?

39
Buy-Side or Sell-Side

40
Buy-Side
  • Mutual Funds
  • Private Wealth Management
  • Hedge Funds
  • Institutional Investors
  • Pension Funds

41
Sell-Side
  • Investment Banking
  • Trading
  • Research
  • Sales
  • Capital Markets

42
Investment Banking or Trading

43
Investment Banking
  • Mergers Acquisitions
  • IPOs, Secondary Offerings
  • Debt Offerings
  • Recapitalizations
  • Leveraged Buyouts
  • Connecting companies with capital

44
Trading, Research and Sales
  • Executing Trades for Clients
  • Researching Stocks and Bonds
  • Selling Clients New Issues or Investment Ideas
  • Forecasting Economic Data

45
Equities or Fixed Income

46
Equities
  • Priced off Earnings Capacity (Growth Prospects)
  • Very Liquid Market
  • Analyze Business Strategies and Growth Plans
  • More Volatile/Risky

47
Fixed Income
  • Priced off Cash Flow
  • Includes Currencies Commodities
  • Less Liquid Markets
  • Mathematical
  • Much More Product Variety

48
Derivatives, Options, Swaps
  • Integrated into both Fixed Income and Equities
  • More Technical
  • Hedging Devices

49
Resumes and Interviews
  • Words of Advice

50
Resumes/ Interviews
  • Get involved with Clubs (CIC Preferably)
  • Differentiate Yourself
  • GPA is NOT All That Matters
  • Interviews Practice, Practice, Practice
  • Know Your Story
  • Know the Job Youre Applying For
About PowerShow.com