an introduction. agenda wee yang 1. lesson plan 2. why invest? 3. what is value-investing? 4. how to...
TRANSCRIPT
AGENDAWee Yang1. Lesson Plan2. Why Invest?3. What is Value-Investing?4. How to Invest?5. Common Jargon
Teck Yuke6. An Introduction to Finance
INTRODUCTION PHASE
1. An Introduction Lesson Plan Why Invest? Common Terminology
2. Investment Pitfalls3. “How to Save Money?”
LEARNING PHASE
1. Introduction to the 3R2. The Right Business Model3. The Right Management4. The Right Valuation vs. Price
THE APPLICATION PHASE
1. Group Research Projects in Singapore Stock Market by Industry
2. Group Research Projects in the US Stock Market by Industry
What is Value-Investing?
To identify the difference in the intrinsic value of a stock and the current stock price.
If the difference is positive, and the company has good prospects, invest.
If the company has bad prospects or a bad management, avoid at all costs.
“The stock market is filled with individuals who know the price of everything, but the value of nothing.”
- Philip Fisher
How do you invest?
Singapore Exchange trades continuously from 9 am to 5 pm, weekdays.
Central Depository (CDP) account is needed before trading
Bid or ask through a broker, either via online platform or a phone call
Common Jargon
STI – Straits Times Index A weighted index of top 30 companies
listed on the Singapore stock exchange Listed Stock
Shares of an issuer that are traded on a stock exchange. Issuers pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges.
Common Jargon
Blue Chip Companies Stocks of leading and nationally known
companies that offer a record of continuous dividend payments and other strong investment qualities.
S Chip Companies Chinese companies listed on the stock
exchange Note: You should never touch these
Financial Institutions
Banks / Insurance
Retail Banking Investment Banking
M&A ECM DCM
Insurance
Investment Services
Asset Management Firm
Hedge Funds PE/VC/Alternatives Pension Funds
Asset Classes
Equities (Stocks) Fixed Income (Bonds) Cash / Money Market Tangible Assets (Real Estate /
Commodities)
Fixed Income
Periodic Returns Think… debt. Bonds
Government / Sovereign Corporate Mortgage Asset-Backed Securities (Auto /
Student / Credit Card)
Cash / Money Market
Money…duh?!
Cost of money Interbank Lending Rate (Short term
Interest rate) Currency?
Tangible Assets
Physical things you can own
Commodities Precious/Base Metals Sugar / Grain / Wheat Orange Juice
Real Estate