Mentorship, Fall 2013 Daniel Bruce [email protected] GTSF
Investments Committee
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Itinerary Week 1 Intro/About the IC / Intro to Capital Markets
Critical Ratios / Financial Statements / Fundamental Analysis Week
2 Macro/Micro Analysis / Growth Drivers / Basic Technical Analysis
How to do a pitch/presentation / Exit Strategies Week 3 Sector Work
/ Rotationals
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Notes Bring a laptop to every meeting Expected to learn outside
the sessions www.bloomberg.com www.yahoofinance.com
www.investopedia.com www.wsj.com TD Ameritrade Be thinking about
what sectors interest you Will get into more detail later
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GT Student Foundation Moving forward by giving back Development
Committee PR and Marketing Arm Fund Raising Allocations Committee
Makes Grants to Student Organizations ~$30,000 per year Investments
Committee Invests and Grows Endowment
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Welcome to the IC Largest student managed endowment in the
country. $853,002
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Whats New This Year Mentorship Assessment At the end of
Mentorship, an Analyst Test will be administered Top Performers
will be granted Analyst roles Others are welcome to attend meetings
and other IC events but will not be allowed to pitch or present.
Professional Dress While Presenting No pitches/presentations will
be heard otherwise Exit Strategy Every presentation must come with
an exit recommendation. No Exceptions.
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Asset Classes Equities Company Stock Alternative Investments
International Companies Commodities Hedges REITs Special class of
company Not necessarily limited to real estate Fixed Income
Sovereign Debt US Bonds Cash
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Equities Financials Banks, insurance, etc Energy Oil, Nat Gas,
Alternative Energy Technology High Tech, hardware, semiconductors,
software Services Anyone that doesnt sell a physical product
Staples Consumer non-discretionary items, shampoo, etc Cyclicals
Discretionary items, retail, etc Health Care Pharmaceuticals,
Health Care Services, etc Industrials Machinery, engines, etc
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What is the Stock Market? A loose network of economic
transactions for the trading of company shares and derivatives at
an agreed price. Not in any one physical location, although there
are trading floors/desks/etc NYSE Largest equities-based exchange
in the world NASDAQ Worlds first electronic stock market Stock
individual units of ownership of a company Usually issued by a
company to raise capital or reward employees (hence, capital
markets) You and I can buy pieces of company ownership for
publically traded companies on one of the above exchanges.
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We will get into these next time.
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Important Benchmarks Dow Jones Industrial Average The Dow 30 or
just The Dow 30 Large Cap Stocks S&P 500 500 Largest Public
Companies NASDAQ Tech Weighted Index with >3000 Stocks
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ETFs Exchange Traded Funds Basket of stocks or other financial
instruments meant to achieve the performance of a certain idea. Ex:
Grains, Financials, S&P, Euro Trades Like a Stock, Acts Like a
Mutual Fund Highly Liquid Have Been Blamed for Increasing
Systematic Risk ETFs make whole sectors move in tandem, reducing
the benefic of diversification
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Important Terminology Bulls Group of traders who are generally
positive about the movement of a stock or the market as a whole.
bullish Bears Group of traders who are generally negative about the
movement of a stock or the market as a whole. bearish