RSM2312 Value Investing Eric Kirzner & Maureen Stapleton
[email protected] [email protected] TARGET AUDIENCE Students interested in a rigorous course on company evaluation using the Value approach. RSM 2312 is a core course for the Funds Management major. COURSE MISSION The focus of this course is on the fundamental value-based approach to investing pioneered by Benjamin Graham and developed by Graham and David Dodd. The overall objective of the Graham/Dodd approach is to find undervalued companies based on their estimated intrinsic values. The critical element in the Graham approach is the search for the “margin of safety” (i.e. the purchase of $1.00 of intrinsic value for $.50). COURSE SCOPE The emphasis of this course is on both intellectual stimulation and practical rigorous applications, gained through the security analysis project. The course has a heavy participation component and emphasizes the development of both quantitative analytic skills and presentation skills. By completing this course students should be able to conduct a full equity analysis of a company including a rigorous quantitative and qualitative assessment, culminating in a valuation conclusion and recommendation. Students will develop their ability to present their conclusions in a coherent and professional manner to a panel of industry judges. The value investing course received a $1,000,000 gift from a generous donor in 2006 which is now invested in a portfolio of stocks based on past students’ recommendations. The 2018/2019 Value class will provide recommendations for maintenance and changes to this Rotman VIP portfolio.. REQUIRED RESOURCES TEXTS - Bruce C.N.