YUDI Meeting #1.pdf

8/10/2019 YUDI Meeting #1.pdf

http://slidepdf.com/reader/full/yudi-meeting-1pdf 1/39



Education Meetings: Course Outline





Goals of Meeting # 1

!" #$%&'()*$%+$, ).& /*(+0( 12 ).& 3)104

5*'4&)

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Stocks Vs. Bonds

STOCKS

• !"#$%&'$( *+,%-. '/$"012%3 %$ 4 5'634$. – 7', 8,. %- 4$9 '/$ %- ,$&: .', 1":: %- – ;4$ '/$ 5'66'$ '0 30"<"00"9 1240"1= >0"<"00"9 1240"1 40" 6'0" "?3"$1%@"A 8,-

-2". B,404$-"" .', #?"9 9%@%9"$91 4$9 40" 14<"0 %$ -2" "@"$- '< 84$C0,3-5.=;'66'$ 1240"1A 2'/"@"0A B%@" .', @'&$B 0%B2-1=

• 7', 30'#- 8. '/$%$B 1-'5C1 %$ -/' /4.1( – D240" >0%5" E330"5%4&'$ F1-'5C 30%5" B'"1 ,3G – H"5"%@%$B !%@%9"$91 F841%54::. I-24$C .',J B%K1 <'0 '/$%$B -2"%0 1-'5CG

• !%@%9"$91 40" $'- 0"+,%0"9 <'0 5'634$%"1 -' 'L"0

• E9@4$-4B"1( – M1,4::. 64C" 6'0" 30'#-

• !%149@4$-4B"1 – M1,4::. 6,52 6'0" 0%1C. F2%B2 0%1CA 2%B2 0"/409NG – 7', 54$ :'1" "@"0.-2%$B FOPPQ '< .',0 %$@"1-6"$-G



Stocks Vs. Bonds

BONDS• !"#$%&'$( *'+ ,-" , .-"/%0'-1 2'+ 3',$ 04" .'56,$2 5'$"2

– 78"- 3',$%$9 04" #-5 5'$"2: 2'+ ";6".0 0' -"."%<" %0 =,.> ,8"- , ."-0,%$ ,5'+$0 '? &5"@.,33"/ 04" 5,0+-%02AB C'56,$%"D !""#$ ='$/D E4%3" 2'+ =+2 04"5B 78"- 2'+ -"."%<" 2'+-6-%$.%6,3 =,.>: 04" %$<"D05"$0 %D '<"-B

– F4"-" ,-" , 0'$ '? /%G"-"$0 ='$/D %$ 04" 5,->"0(• 7 4+9" ,--,2 '? .'-6'-,0" ,$/ 9'<"-$5"$0 ='$/D ?'- 2'+ 0' .4''D" ?-'5

• H'E 2'+ 6-'#0 ?-'5 'E$%$9 ='$/D( – I$0"-"D0 6,25"$0D – JD+,332 -"."%<"/ %$ K+,-0"-32: D"5%L,$$+,332: '- ,$$+,3 6,25"$0D

• 7/<,$0,9"D( – 7-" +D+,332 .'$D%/"-"/ D,?"- %$<"D05"$0D 04,$ D0'.>D @=+0: 3'E -%D>: 3'E -"E,-/MA – *'+ ,-" 04" #-D0 0' -"."%<" .'56"$D,&'$ %$ 04" "<"$0 '? =,$>-+60.2

• !%D,/<,$0,9"D( – F4" -%D> '? !"?,+30( 04" "<"$0 %$ E4%.4 04" .'56,$2 .,$$'0 6,2 2'+- %$0"-"D0 6,25"$0DB – N' 'E$"-D4%6 ! $' <'&$9 -%940D – O,3+,&'$ ,$,32D%D '? ='$/D %D <"-2 /%P.+30 ,$/ .'$<'3+0"/



Stocks Vs. Bonds





WHAT’s OUR focus?

Ownership

Benefits from thegrowth of company

Profits paid out individends

Loans

Benefits frominterest on loan

Interest in form ofcoupon payment



MAJOR U.s. Stock indices

• !"#$ &!'( "')*+, #)-.+/0123 $4*025*6 – !"#$%& ()* +, -#".*&( $/01#23*&4

• 789 :;;6 – !"#$%& ()* 5,, -#".*&( $/01#23*& 32 (*"0& /6 7#"%*( 8#13(#-39#:/24 8/2&3;*"*; ()*

<*&( "*1"*&*2(#:/2 /6 ()* =4>4 &(/$% 0#"%*(4

• <=* >$7!$? @'AB'+1/*6 – ?( 3& )3.)-@ 6/--/A*; #& #2 32;3$#(/" /6 ()* 1*"6/"0#2$* /6 &(/$%& /6 (*$)2/-/.@

$/01#23*& #2; ."/A() $/01#23*&4

• >C7D6 – $/2(#32& # B#"3*(@ /6 ;3C*"*2( (@1* &(/$%&D <E( 2/(#<-* <*$#E&* ()* #$(E#- ("#;32.

(#%*& 1-#$* 1)@&3$#--@D "3.)( 32 F*A G/"%4

• EF77DG H;;;6 – 7*#&E"*& ()* 1*"6/"0#2$* /6 H&0#--I$#1J K&0#-- 0#"%*( $#13(#-39#:/2L $/01#23*&4

8/2&3;*"*; ()* <*&( 0*#&E"* /6 1*"6/"0#2$* /6 &0#--I$#1 (/ 03;I$#1 &)#"*&4



MAJOR U.s. Stock indices

• !"#$ &''( – !"#$%&"$ ()" *"&+,&-#./" ,+ ()" 011 2#&3"$( /,-*#.4"$ 4. ("&-$ ,+

-#&5"( /#*4(#246#7,. ,. ()" 8,.9,. :(,/5 ;</)#.3" =8:;>?

• )*++,* --.( – :4-42#& (, ()" @ABC 4( 4$ *&4/"DE#$"9 #.9 4$ ()" -,$( F49"2G H%,("9

#I"&#3" ,+ J#*#."$" "H%47"$ ,. ()" K,5G, :(,/5 ;</)#.3" =K:;>?L"*&"$".($ ()" 2#&3"$( MMN $(,/5$?

• "/, 0123 #,23( – L"*&"$".($ ON /,-*#.4"$ 4. P,.3 Q,.3? R,.$49"&"9 ()" -#4.

4.94/#(,& ,+ ()" ,I"&#22 *"&+,&-#./" 4. P,.3 Q,.3?

! #$%& '( $()*+',$(-./ $(%+*)0((+)%+1 -.02'. +)0(03/4 2+$(- '5'*+ 06 %&+)0(1$70(, 06 ,%0)8 +9)&'(-+, 0:%,$1+ %&+ ;<=<4 ', 5+.. ', 5$%&$(4 $, $3>+*'7?+%0 /0:* ,:))+,, ', '( 0?+*'.. $(?+,%0*< @0* (054 &05+?+*4 5+ 5$.. 60):, 0( ;<=<+A:$7+,<





Choosing Stocks

1 2 3 4 5 6

7

3E>#F: G># H#37 IF<G 7EJ !"#$! KL37J<:M





The top-down approach

• !"#$ &' $"( )*+, &- ./01'2 – 34&1(5&-( 60/7('' $/ 8-1 94#5&$: '$/7;' $/ &-<('$

&-= >&0'$ .( #-#5:?( $"( @#70/ A7/-/B: #$ 5#0C(#-1 (-1 .&$" #- (94&$: &-<('$B(-$ $"#$ &'1($(0B&-(1 $/ 60/<&1( # 0($40- /- &-<('$B(-$DEFAG $"#$ (H7((1' $"( 7/'$ /I $"#$ &-<('$B(-$=




• !"#$%#&'( *+*,-.#&/ 01*2*3 451/5 1* # 6%'/&7' 76 ,5- 8#/07-/7'7.1/ /7'91&7'*• :5#, 1* ,5- -/7'7.1/ 7%,$772 670 ,5- 6%,%0-; <' #.#=1'( .7',5$+ >%?$1/#&7' 1* ,5- !"#$%

'$(#)"* +,-"-.), !"#),(/-012 @5#'(-* 1' ,5-*- 1'91/#,70* (-'-0#$$+ >0-91/, /5#'(-* 1' ,5--/7'7.+ A .7',5* $#,-0B C%?$1*5-9 ?+ ,5- @7'6-0-'/- D7#093 1, -E#.1'-*F

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

• X,5-0 8#/07 -/7'7.1/ /7'91&7'* 1'/$%9-F 4#03 ,5- -E/5#'(- 0#,-3 4-#,5-03 !DXY<Z [5- >71', 1*>0-91/&'( 6%,%0- 8#/07-/7'7.1/ /7'91&7'* /#' 5-$> +7% >0-91/, 451/5 1'9%*,0+ 41$$ ?- 57, #'9451/5 41$$ '7,B \6 ,5- 6%,%0- -/7'7.+ $772* (7793 ,5-' (074,5 *,7/2* 41$$ (-'-0#$$+ 97 ?-]-0B \6 ,5-

6%,%0- -/7'7.+ $772* >7703 ,5-' "#$%- *,7/2* .#+ >-0670. ?-]-0B



Different Asset Classes

• !"#$ &' #( )''*$ +,#''-• ) ./012 03 '*41/&5*' $"#$ *6"&7&$ '&8&,#/ 4"#/#4$*/&'54' #(9

*6"&7&$ '&8&,#/ /&': #(9 /*$1/( &(;*'$8*($ 4"#/#4$*/&'54'< =#4"#''*$ 4,#'' >&,, 2*/30/8 9&?*/*($,@ &( #(@ .&;*( 8#/:*$*(;&/0(8*($<

• A#/&*$@ 03 )''*$ +,#''*'B• =C1&$@ D'$04:'E• F&6*9 G(408* D70(9'E• +#'"

• H*#, ='$#$*

• +08809&5*'• +0,,*457,*'• I*9.* F1(9'• J/&;#$* =C1&$@

!"# !"%## &'() *++#, -.'++#+

!"#$%&'()$ +&)$,#-$&#,



Different Asset Classes

• !"#$ &' #( )''*$ +,#''-• ) ./012 03 '*41/&5*' $"#$ *6"&7&$ '&8&,#/ 4"#/#4$*/&'54' #(9

*6"&7&$ '&8&,#/ /&': #(9 /*$1/( &(;*'$8*($ 4"#/#4$*/&'54'< =#4"#''*$ 4,#'' >&,, 2*/30/8 9&?*/*($,@ &( #(@ .&;*( 8#/:*$*(;&/0(8*($<

• A#/&*$@ 03 )''*$ +,#''*'B• =C1&$@ D'$04:'E• F&6*9 G(408* D70(9'E• +#'"

• H*#, ='$#$*• +08809&5*'

• +0,,*457,*'• I*9.* F1(9'• J/&;#$* =C1&$@

!"# !"%## &'() *++#, -.'++#+

!"#$%&'()$ +&)$,#-$&#,

!"#$




!"#$%&&'('$')(*!+,-'./01+*23&

'('$')(*!&3)(4'0$5$'*02($&$'*02($&$'*02($5/653)(4'0+7!03.80)9:/6-;$0(/'$<$'*02(:=>

Choose Sector

!"#$ &'( )*+$ ,-$./#0'"1 '" 2'3 &'( 42/"+ 42$ 5*#-' 6#'"')& 3/77 12*,$ (,8 &'( #*")*+$ &'(- "$94 .$#/1/'"1 '" 32/#2 1$#4'-1 *". 42$" /".(14-/$1 &'( 42/"+ 3/77 '(4,$-:'-) 42$)*-+$4 ;*1 * :("#0'" ': 42$1$ 5*#-'$#'"')/# #'"./0'"1<= >".(14-/$1 *-$ 1(?1$41 ': 1$#4'-1=

@2$-$ /1 7'41 4' #2''1$ :-')A B'4$C 42$ '"7& *11$4 #7*11 3$ *-$ #'"1/.$-/"D 2$-$ /1 $E(/4&=

F$#4'-1G• H'"1()$- I/1#-$0'"*-&• H'"1()$- F4*,7$1• 6"$-D&•

J/"*"#/*71• K$*742#*-$• >".(14-/*71• >":'-)*0'" @$#2"'7'D&• 5*4$-/*71• @$7$#'))("/#*0'" F$-L/#$1•

M07/0$1




Find Industry




Analyzing Industry:

Knowing how to choose which ones




>$0& C1? .*A& %&0+%&% ;.+0. (&0)1'N(" ;+@@ O& .1) +$ ).& $&*'2?)?'&P C1? 0*$ ?(& !"#$%#&' )*+% )"#,%' )1 *$*@CQ& ;.+0. K$%?()'C;+@@ O& *))'*0)+A& +$ ).& 2?)?'&R

S<$ ?$*))'*0)+A& +$%?()'C +( 1$& ).*) +( $&*'+$, T8?'& 01B8&)+)+1$U;.&'& V+'B( *'& 2*0+$, $1'B*@ NW" 8'1V+)(R <( * B*'4&) O&01B&( B1'&&2V+0+&$)P +) O&01B&( B1'& ?$*))'*0)+A&




Choose industry




Find Investments




Security Screening

!"#$ &'' () *+", "#)( "#*+- .(/0&#123&4*-4'1 56789 &#$&##3&' 567:9 4-0(4*,"# ;<= !"'"#>,

!"#$%&'( *+,- .*/+"-%0- %01 2+*/'.2%-31 /%"- -+ -43 .053,-*30- /"+23,,6 -4., ., -43 43%"- +7 .053,80#6943"3 .053,80# &32+*3, *+"3 +7 %0 %"- -4%0 ,2.30236 -4., ., 943"3 -43 #"3%- %"3 ,3/%"%-31 7"+* -43#++1:

;43"3 %"3 *%0( ,2"330.0# /"+23,,3, .0 .053,80#< &$- -43( 2%0 &3 ,3/%"%-31 .0-+ -9+ &"+%1 2%-3#+".3,=• !"#$%&#%'( *+,(($-$. /$#012-23

• >.0%02.%' ?-%-3*30- !0%'(,.,• @%'$%8+0 ,-"%-3#.3,

• >$01%*30-%' 5, ;3240.2%' !0%'(,.,• A.,2+$0-31 B%,4 C+9 !0%'(,.,

• !"#0-&#%'( *+,(($-$. /$#012-23• D$,.03,, E+13'• E%0%#3*30- ;3%* %01 B$'-$"3• B+*/38853 !15%0-%#3,• F+9 (+$ 733' %&+$- -43 2+*/%0( %01 94(G H$,87( (+$" "3%,+0,:• IJ%*.0.0# K++1 9.''L&"%01 0%*3< "3/$-%8+0< %01 '+(%'-(:




Choose Company







Security Selection

!"#$ &'( )*+$ ,$-.'-/$0 1)'-'(2) *"0 3"1(34+$ 5#-$$"3"2 ,-'#$55$5 '" 1)$ #'/,*"3$5631)3" * #)'5$" 3"0(51-& 631)3" * #)'5$" 5$#1'- 76)3#) 6*5 * .("#4'" '. ,-$03#1$08*#-'$#'"'/3# #'"034'"59: &'( #*" #)'5$ 1)$ 51'#;5 7<*5$0 '= 1)$ ,-$+3'(5 *"*>&53591)*1 63>> '=$- 1)$ /'51 -$1(-" .'- 1)$ 23+$" -35;?




Portfolio Monitoring

• !"# %&'' ()*)+, ,-) *(".)// "0 ,-) 123 ," ."4/,(#., + *"(5"'&" 6."'').7"4 "0."8*+4&)/9:

• 1-) ;)! ," + /#..)//0#' *"(5"'&" &/ 4", "4'! &4 (#44&4< /#..)//0#' 123 +4+'!/&/= >#,8+&4'! &4 !"#$%&"'()*+, ?

• 2"4@, *#, +'' !"#( )<</ &4 "4) >+/;),:• AB)+''! !"# %"#'B B&C)(/&0! +.("// +//), .'+//)/= >#, &4 "#( .+/) %) +() "4'!

%"(;&4< %&,- )D#&,!= /" ,-) <"+' &/ ," B&C)(/&0! !"#(/)'0 +.("// 8+4! &4B#/,(&)/ "0,-) )."4"8! 68)47"4)B &4 ,-) +>"C) /'&B)9 /" ,-+, !"#( &B&"/!4.(+7. (&/; &/<()+,'! ()B#.)B "( )C)4 )'&8&4+,)B: E!/,)8+7. (&/; .+44", >) )'&8&4+,)B: A0 ,-))."4"8! &/ ."''+*/&4<= .-+4.)/ +() !"#( *"(5"'&" %&'' ,""?



Diversification

!"# %&'( & )*"+&**! ,-./01-2/, 3"04"*-"5



Diversification

!"# %&#'()* +)# ,-& ./01 2,)34 5)67&88)*9'(*3& )*:; 3)*'(<&# &="(,;

• !""#$%&'( *# *+, --. $/0,1 2+,$, 3#/ 4/5*$6"* 3#/$ 6(, 7$#8 --. 6'% *+6*94 +#2 8/"+ 3#/ 4+#/0% 5, &':,4;'(

&' 4*#"<4 =&7 3#/ 6$, 3#/'(,$1 3#/ "6' *6<, 8#$, $&4<>1 8#4* #7 /4 4+#/0% 5, [email protected] &' 4*#"<4 6'3263B

!"# %&#'( )*+,*(%* %- '(-* &%.#+-%/#& %0 1"# )+*)*+2*0 *3 4-5'(( 6') .- ('+7# 6') -1*68-9 '-

:#(( '- 47+*:1" .- .'(;# -1*68-9



Looking Forward

!" X1*@ ,1+$, 21';*'% +( )1 &Y*B+$&!%&'()$* !&(%%,),- *$% !%&'()$*!%"%&$)#, 01B81$&$)( 12 ).& 7:< +$%&)*+@ N).+( ;+@@ .&@8 ?( O&01B& B1'&+$21'B&% *$% +$)&@@+,&$) +$A&()1'(R

6" L&Y) 5&&)+$,D L1A&BO&' !Z).P 6W![

Z" -./01 !2/34/50 !6678• Nicholas Barberis, November 18 th , 8:00pm

from Yale SOM, on Behavioral Finance.How Psychology affects the pricing of assets

• Keith Zusi , December 4th, 5:00pm fromGoldman Sachs on Investment Banking.



Books"The Annual Reports Of Berkshire Hathaway (BRK)" (from 1977 untilpresent)

Book for the Analyst:

Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) by Benjamin Graham, David Dodd and WarrenBuffett (Sep 25, 2008); Any edition will do

Books for the Layperson:

"The intelligent investor " by Benjamin Graham. 354 pages, 11/1997.Translation of the last edition (1971) (First edition in 1949).

"Common stocks and uncommon profits” by Philip Fisher. John Wiley &Sons. 200 pages, 05/2000. (First edition in 1958).

"Paths to wealth through common stocks " by Philip Fisher. (213 pages,08/2007). [Original edition by Prentice-Hall Inc. 211 pages, 1960. Coverhere].

"The Warren Buffett portfolio " by Robert G. Hagstrom. 240 pages. (Firstedition in 1999). Wiley & Sons, Inc. ISBN : 0-471-24766-9.

"Quality of Earnings " by Thornton L. O'glove (Oct 1, 1998)

http://www.amazon.com/Thornton-L.-Oglove/e/B001HCZNRK/ref=sr_ntt_srch_lnk_1?qid=1414413144&sr=1-1

http://www.wiley.co.uk/

http://www.leggmason.com/

http://futile.free.fr/books%201101/paths.jpg

http://www.wiley.co.uk/

http://www.amazon.com/Benjamin-Graham/e/B000APZXBQ/ref=sr_ntt_srch_lnk_1?qid=1414412875&sr=1-1

http://www.berkshirehathaway.com/





YUDI Competition

d



Board positions

\&]@@ (&$% 1?) * 8*$ @+() &B*+@ 21' B1'&

+$21'B*)+1$ 1$ $&; *A*+@*O@& 81(+)+1$().+( (&B&()&'R





YUDI Meeting #1.pdf

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