3 posts tagged “endurance”

So what did I learn today? Well even though the lesson was a little tough to get through and follow I did learn a lot about volatility and risk analysis. We also learned about Realized compound yield which used the coupon payment from a low yield bond to re-invest at a higher rate. This was an interesting concept indeed.

Next we looked in depth at Portfolio Theory and the risk associated with having many different types of stock. The best thing about the concept is the fact that through correlation the stocks can have a canceling out effect with regards to risk and minimizing the impact of it by choosing stock with opposite(non-related) correlations (correlation co-efficient).

Finally we learned with Sris a bit about Investment Management Process, but unfortunately since his information was proprietary we couldn't completely copy the slides we could only hear about such concepts like Strategic Asset Allocation and Tactical Asset Allocation. We looked at Active vs. Passive Strategy in regards to the Investment Management Process, the Timing and Selection of such companies, and the Simple Return over Several Periods.

I did enjoy the discussions on Risk and Portfolio Theory and look forward to more insights on this topic.

-Marcus

Today I learned so much with regards to M&A and watched a video with the CEO of Black Swan who offered his insights on the dollar, the Asian markets, and the spreads of carry trades.

However I feel like the majority of my learning experience happened when Sanjay took us through the accretion/dilution example in the evening time which outlined how a company derives value when it is either being bought or when it is acquiring.

-Marcus

The first week, of lessons at least, has come and gone and with it, all trace of weakness in my body! Well not really, but I have pushed myself a lot harder than I ever thought possible. While I still believe the schedule is WAY TOO grueling for it's own good, it's a necessary step in the process of becoming an amazing corporate financial player.

I realized today that the majority of what I learn here will not really be as valuable right now as it will be if I keep up with it and practice/refer back to it at home. That's where the real value of this course will come to light. I am no superstar in Finance by any means, but I do believe that one day I can become a force to be reckoned with in the Financial sector if I stick with it.

Today specifically though, I really became frustrated with the fact that I couldn't figure out all of the questions to the homework last night. I worked furiously and could only make it to question number 24 before giving up and chalking it up to fate. I will study those concepts of WACC and probability of default on loans/cost of equity/cost of debt change the most before tomorrow night. It's not a heavily weighted test, but every percent counts and I have NO idea what we'll encounter next week.

Endurance. Resilience. Dedication. Hard work. Commitment. Passion. Diligence. True lessons learned this week indeed.