Home » Posts tagged 'analysis'
Tag Archives: analysis
Samikshya “Sami” Gautam is from Kathmandu, Nepal. She received her undergraduate degree in finance from Kathmandu University. She graduated from the Crosby MBA program in May 2014 with concentrations in finance and marketing analytics. For commencement she was selected to represent masters’ degree candidates as a student marshal. Passionate about money management, she currently works as an investment analyst at Spirit Realty Capital.
Sami answered questions about her experiences during a webinar on December 4. Hear some of her responses here.
On my second day in the United States, I visited the Trulaske College of Business at Cornell Hall for the first time just to see what the place looked like. Inside, a woman walked up to me and introduced herself.
Mike Pinnell graduated from the Crosby MBA program in December 2014 with a concentration in marketing analytics. He will work at DISH, accepting an offer with the company after an internship in which he provided insight into how customers use its self-service tools. Pinnell will live in Denver and looks forward to mountain climbing every weekend.
As I prepare to graduate, I have thought about what sparked my interest in analytics and which marketing analytics books helped me develop as an analyst. This list comes with a significant caveat, however: The field of marketing analytics changes so quickly that as soon as a book is published it is behind the times. To truly keep up, supplement these recommendations with sites like CIO for technology business news, Occam’s Razor for digital marketing news and strategies, Forrester for a blog run by analysts at various companies, Big Data University, and others. (more…)
Paul Abrogouah graduated in 2013 from the Crosby MBA program with a concentration in finance. He works as a fixed income analyst at Shelter Insurance Company and has passed Level I of the CFA exam. After three years of work experience as an equity analyst, he now is building the perspective of a bondholder, specifically covering the markets for corporate and municipal bonds.
These 10 finance books considerably impacted my knowledge about valuing companies. I consider the first four books “mind modelers” because of the frameworks they provide. The next three are required tools, those actually needed to do the job of a financial analyst. The last three books on the list might not seem directly related, but they help you make sense of financial numbers.
The Intelligent Investor by Benjamin Graham, Jason Zweig, and Warren E. Buffet
“… everyone who buys a so-called hot common-stock issue, or makes a purchase in any way similar thereto, is either speculating or gambling”
— Benjamin Graham
Frequently listed among the top three must-read finance books, The Intelligent Investor influenced the way I look at common stock investing. The book’s author, known as the “Father of Value Investing,” begins with advice from which all investors could benefit. Chapters 10 to 20 focus strictly on fundamental analysis, stock selection, convertible issues, and warrants.
Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher and Kenneth L. Fisher
“I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits … A thorough understanding of the business, obtained by using Phil’s techniques … enables one to make intelligent investment commitments.”
— Warren E. Buffet
Unlike Benjamin Graham, Philip Fisher is a growth investor. In his book, he lists fifteen points that describe his investment philosophy, known as “scuttlebutt.”
Security Analysis: 6th Edition by Benjamin Graham & David Dodd
“There are four books in my overflowing library that I particularly treasure …; a third is an original copy of the book you hold in your hands.”
— Warren E. Buffet
Although this book should be read right after The Intelligent Investor because it builds upon the knowledge of that book, it is not easy to digest. The book is rather lengthy and technical. But, as each chapter builds upon that which precedes it, those who make it to the end learn a lot.
The Five Rules for Successful Stock Investing by Pat Dorsey and Joe Mansueto
From the title, one would think that the book talks about the same points mentioned in the previous books. However, a couple of elements make this book unique:
- Chapter 12 provides a 10-minute test to determine if it’s worth examining a specific stock in detail. This has come in handy, especially when I’ve had a list of 10 attractive stocks but just two weeks to prepare a pitch for one of them.
- Chapters 14 to 26, provides a sector analysis of several industries, including healthcare, banks, asset management, and insurance. He covers not only how the industry functions, but also the critical factors that impact its past performance.
Best Practices for Equity Research Analysts by James J. Valentine
“The key to generating alpha is having a more accurate view about a future stock price than the market. This can only be done on a consistent basis if the analyst has an edge over the market in one of the three areas that compose our FaVeS framework: Financial Forecast, Valuation and Sentiment.”
— James J. Valentine
This book is a must for any student interested in a career as either a sell-side or buy-side analyst. With 16 years of work experience on Wall Street, James takes you through producing a research report on a publicly traded company. He explains how and where to get information and how to effectively communicate those findings in a report.
Investment Valuation: Tools and Techniques for Determining the Value of Any Asset by Aswath Damodaran and Valuation: Measuring and Managing the Value of Companies by Tim Koller, Marc Goedhart, David Wessels and McKinsey & Company Inc.
Both books are musts when it comes to applying investment valuation techniques, detailing discounted cash flow models and relative valuation models. They cover the same topics but serve as companions to each other because one discusses some critical points not covered by the other. For instance, Investment Valuation has a chapter on equity of distressed companies, while Valuation discusses “valuing flexibility.”
Interpretation and Application of Generally Accepted Accounting Principles by Steven M. Bragg
Given recent scandals, it is beneficial for financial analysts to enhance their accounting acumen. When trying to identify “yellow flags” through forensic accounting, as recommended by James J. Valentine, I keep this 1,344 page book around at all times because it details each component of financial statements.
The Secret of Economic Indicators by Bernard Baumohl
“Great analysts are those who work on a more macro level. Most equity analysts are expected to look at stocks from a bottom-up approach. Those who can also look at them from a top-down approach have a competitive advantage.”
— Drew Jones, former Associate Director of
Research at Morgan Stanley
This book talks about a broad array of economic indicators followed by Wall Street. The book examines economic indicators, how to view their influence on the market and what they say about the future.
Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter
Porter’s analysis of industries captures the complexity of competition through five underlying forces: power of buyers, power of suppliers, rivalry, threat of new entrants, and threat of substitutions. Additionally, Porter introduces one of the most powerful competitive tools yet developed: His three generic strategies — lowest cost, differentiation, and focus — that structure the task of strategic positioning. A must for finance professionals, this book helps an equity analyst understand how a company creates, and undermines, its competitive advantage.
To learn more than can be found in these finance books, go to the Crosby MBA program’s finance page.