Chap001 - U.C Berkeley Extension U.C Financial Statement...

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U.C. Berkeley Extension U.C. Berkeley Extension Financial Statement Analysis Financial Statement Analysis and Valuation and Valuation Introduction Introduction to to Investing and Valuation Investing and Valuation Don Uy-Barreta Don Uy-Barreta [email protected] [email protected]
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The Aim of the Course The Aim of the Course To develop and apply techniques for valuing firms and potential investment securities. Features of the approach: A disciplined approach to valuation Builds from first principles (Economics Analysis, Fundamental Analysis, Technical Analysis) Marries fundamental analysis and financial statement analysis (and to a certain extent view why determined security valuation may/may not equate to trading valuation) Stresses the development of technologies that can be used in practice: how can the analyst gain an edge? Adopts activist point of view to investing: the market may be inefficient Exposes good (and bad) accounting from a valuation perspective will look at some companies that have allegedly used questionable business/accounting practices. (We will look at Enron and BAE systems).
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What Will You Learn from the Course What Will You Learn from the Course In addition to the assigned chapters and their respective content, I will be providing additional non-textbook material that will shed light on why the underlying value of a particular security may/may not reflect the trading value of that particular security. How to Play the Bubbles Like the Pros http://online.wsj.com/article/SB1000142405274870406 'Ratings Shopping' Lives as Congress Debates a Fix http://online.wsj.com/article/SB1000142405274870331 congress+debates+ratings+shopping+fix
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Investment Styles Investment Styles Intuitive investing Rely on intuition and hunches: no analysis Passive investing Accept market price as value: no analysis Fundamental investing: challenge market prices -Active investing -Defensive investing
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Costs of Each Approach Costs of Each Approach Danger in intuitive approach: Self deception; ignores ability to check intuition Danger in passive approach:
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This note was uploaded on 09/08/2011 for the course ACCOUNTING 101 taught by Professor Bayne during the Spring '10 term at Berkeley.

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Chap001 - U.C Berkeley Extension U.C Financial Statement...

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