Department of Finance and Economics COURSE NUMBER: 29:390:470:01 & 02 COURSE TITLE: Security Analysis
COURSE MATERIALS
Lecture notes and assignments will be distributed via Blackboard.
Required Textbooks:
1) “Value Investing – from Graham to Buffett and Beyond”, Bruce Greenwald, Judd Kahn, Paul Sonkin and Michael Biema. Wiley Finance. ISBN 0-471-46339-6
2) “The Warren Buffett Way”, 3rd Edition, Robert Hagstrom, Wiley
Other readings (buy used copies):
3) “The Intelligent Investor”, Benjamin Graham. Revised Edition 2006 by Harper Collins Publishers. ISBN-10 0-06-055566-1
4) “Security Analysis”, 1951 Edition”, Benjamin Graham & David L. Dodd by McGraw Hill. ISBN 0-07-144820-9
5) “The Essays of Warren Buffett: Lessons for Corporate America”, First Revised Edition, by Lawrence A. Cunningham, ISBN-10: 0-9664461-1-9
6) “Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions”, Joshua Rosenbaum, Joshua Pearl and Joseph R. Perella (Wiley Finance) 2009. ISBN 978-0-470-44220-3
FINAL GRADE ASSIGMENT
Grades Mid-Term: 40%
Equity Challenge competition: 60% (team work)
Teams: Each student must be part of a team of 4 members. Please take advantage of student diversity in your class. Your team is expected to work on class assignments and the equity challenge competition.
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Department of Finance and Economics (29:390:470)
COURSE SCHEDULE
Course Outline
Week 1: Principles of Security Analysis Lectures 1A & 1B
Buying a business Lecture 1C
Read Accounting Clinic 1 Appendix 1
Week 2: Balance Sheet, Income Statement Lectures 2A & 2B
Appendix 2
Read Accounting Clinic 2
Work on Assignment 2
Week 3: Cash Flow Statement
Lecture 2B CF Stat Example.xls
Work on Assignment 3
Week 4: Common Size & Ratio Analysis Lectures 3A & 3B
Work on Assignment 3
Work on Lecture 3B Financial Ratios Example.xls
Week 5: Financial Modeling Lecture 4
Review for Mid-Term Review on BS and IS
Week 6: Mid-Term Exam (1.5 hour exam)
10K, 10Q, MDA, Value Line, SEC Filings, Private notes
Bloomberg FA data
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Week 7: Modeling Financial Statements Part I, II Modeling Training 1,2.xls
Week 8: Modeling Financial Statements Part III Modeling Training 3.xlx
Week 9: Two Wise Men Lecture 5
Sources of Value Lectures 6, 7
Week 10: Intrinsic Value Lectures 8, 9
WD40 Example.xls
Week 11: Wall Street vs. Main Street Lecture Notes
Week 12: Review student case studies.
Week 13: 1st round review of case competition
Week 14: 1st round review of case competition
Week 15: Stock Challenge Competition
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