Academy 01 Introduction to stock-market investing
Est – Lustrum VI Core: Investment groups Highlight: Investment Week & Symposium 2 Peter Paul de Vries, B&R alumnus
3 Introductio n Weekend Formatio n Period Kickoff Investment Competitio n Octobe r Social Drinks, Exclusive Events & In- House Days November - Symposiu m Investme nt Week May Investme nt Awards July Academy
By B&R for B&R ◦ Sharing knowledge Basic to advanced lectures PowerPoints now, VoD “soon” 4
“The act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit. Investing also can include the amount of time you put into the study of a prospective company, especially since time is money.” - Investopedia 5
Making a profit Having something to talk about Thrill Fun 6
Asset managers 1.Blackrock $3,6tr. 2.UBS$2,3tr. 3.Allianz$2,2tr. Pension Funds 1.Japan Government Pension Fund$1,4tr. 2.Norway Government Pension Fund$0,7tr. 3.Pensioenfonds ABP$0,4tr. Mutual Funds Hedge Funds Companies 7 You!
Money markets 8 Bonds Commodities Indices Derivatives
First stock exchange in the 17 th century ◦ Dutch East Indies Corporation Not much has changed 10
Thomas has a company Thomas needs money Thomas raises 20$ from Daniel by issuing stocks 11 Thomas 60$ Thomas 60$ Daniel 20$
Company wants to raise money ◦ More investments ◦ Change the capital structure Liquid instrument Dispersion of ownership People wants stocks because of good returns 12
Value derived from dividends Anticipation of the future Gordon Growth Formula 13
Growth/Value ◦ Is the stock price mainly driven by the company? Pro/Anti cyclical ◦ How much does the stock price move with economy? Trend/momentum ◦ Will the stock behave in the same way as last year? 14
Growth/Value ◦ Is the stock price mainly driven by the company? Pro/Anti cyclical ◦ How much does the stock price move with economy? Trend/momentum ◦ Will the stock behave in the same way as last year? 15
Country ◦ German stocks Industry ◦ Pharmaceuticals Style ◦ High dividend yield Combination ◦ German pharmaceuticals with a high dividend yield 16
What’s a stock index? What’s their function? 17
Dutch Tulip Mania 18
Internet bubble Housing bubble Credit bubble ... Oil bubble? 19
Watch financial news Next week: ◦ Bonds ◦ Buying a stock ◦ Binck 20