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PRESENTATION OVERVIEW
Screen
Develop
through Decide on
Understand Understand Equity compelling Practice for
equities for an investment
the company the industry valuation investment Q&A
investment position
arguments
opportunity
EQUITY SCREENING
Top down investing attempts to capitalize on macro factors Bottom up investors seek to identify investment opportunities
For example, if you bet on the implementation of green energy regardless of macro catalysts
policy, renewable energy producers are positioned to benefit Screen based on the companys financial, managerial,
Drivers to consider include government policy, interest rates, competitive, and strategic attributes as well as valuation
GDP growth, inflation, home growth, lending conditions, techniques using multiples such as P/E or EV/EBITDA
commodity prices, and other macro factors
Because of the lack of macro ties, the focus should be on
It is important to explain why that a particular equity is best creating a cohesive and compelling message for the equity
positioned to capitalize on the driver
Picking a the right equity provides the opportunity for intelligent equity analysis.
PICKING THE INDUSTRY
Dont talk about banks unless you can analyze their derivative book
Pick an industry you like and are comfortable with. Helps with the learning process
If you must pick a big company, pick one with one business e.g. Google not Berkshire
Remember you will be assessed on your analysis, not the correctness of your recommendation
MOODYS CORPORATION
BERKSHIRE HATHAWAY INC.
MORE ON STOCK SELECTION
DIFFERENT INDUSTRIES
INSURANCE EXAMPLE
2. Macro Overview
STRUCTURE
4. Catalysts/Risks
5. Valuation
6. Conclusion
7. Appendices
EQUITY ANALYSIS:
COMPANY
OVERVIEW
The company overview slide sets the
first impression and is an important part
of your pitch because it introduces your
investment to your audience and
prefaces your investment thesis
Explanation of the business model (how
the company makes money) and
providing a revenue breakdown is
crucial
An overview of the management team
highlighting their industry experience
and background to show managerial
competence can be convincing
An equity performance chart,
capitalization table, and summary of key
financial data can be very informative
additions
For natural resources companies, it is
useful to display an asset map
COMPANY ANALYSIS
ABSOLUTE RELATIVE
Accounting Data is just that, Data. You Metrics Reynolds British Altria Philips
must derive information
Formatting
A well formatted, professional slide deck sets a good impression on the amount of work and is more visually appealing to the audience
Attention to detail goes a long way in the industry
Simple and consistent is key!
Know Your Stock
Stick to what you know and are interested in - it will make the research and delivery much easier
This will become apparent during follow-up Q&A
The more you know your stock, the more confident you will be during the presentation
Practice
You are essentially selling the company; be confident, calm, articulate, and concise
How you pitch the company is just as important as the pitch youve put so much work into
Anticipate potential questions beforehand and prepare for them
Know Your Audience
Cater your presentation to your audience characteristics, such as age group, corporate culture, sector, etc.
Q&A
THANK YOU!