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. 1 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 2 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 3 .