Hi all,
I am going to be interning at an international investing company over the summer, and I have next to no experience with investing (long story short, family member knows the owner).
What are the basic terms, equations, and things to look for when researching a company to potentially invest in (i.e. Debt/EBIDTA)?
Are there websites that provide important investing information, and are there ones that I should stay away from?
Any responses are much appreciated!
Investing Noob
Re: Investing Noob
The company knows they are getting a noob so let them train you.
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
Re: Investing Noob
deaddog:
Your idea is nice, but have you listened to reviews or read research on how much training companies are giving new employees these days? Many companies give minimal training (hopefully not financial institutions or it could be dangerous) and expect new hires to hit the ground running. That's fine when you're slinging burgers, but not so much for knowledge economy jobs.
Investnili, what kind of work will you be doing/what type of department/function will you be performing? Maybe we can suggest some resources once we know that.
Your idea is nice, but have you listened to reviews or read research on how much training companies are giving new employees these days? Many companies give minimal training (hopefully not financial institutions or it could be dangerous) and expect new hires to hit the ground running. That's fine when you're slinging burgers, but not so much for knowledge economy jobs.
Investnili, what kind of work will you be doing/what type of department/function will you be performing? Maybe we can suggest some resources once we know that.
Re: Investing Noob
Hogwild, we help out DIY investors who are willing to follow through with their own research; we don't train people who expect to be spoon fed. This person will be professionally trained if he/she is joining a legit company. Word of advice: don't waste your time.
Regards,
Pickles
Pickles
Re: Investing Noob
Just remember that the greatest strength of a discounted cash flow analysis gauging "intrinsic value" of a company is the fact that you have to explicitly state your assumptions on growth and risk.
And the greatest weakness of a DCF is that small changes in assumptions on the discount rate and growth rates create a range in potential values as wide as the grand canyon.
Also remember that with relative valuation (multiples), you are still making assumptions about cash flows, growth, and risk, except that you are making them implicitly; if you use "the maths" to tease out what is going on in a multiple, you will be able to explicitly see what the assumptions in the multiple are, and then gauge whether those assumptions are appropriate or not.
And the greatest weakness of a DCF is that small changes in assumptions on the discount rate and growth rates create a range in potential values as wide as the grand canyon.
Also remember that with relative valuation (multiples), you are still making assumptions about cash flows, growth, and risk, except that you are making them implicitly; if you use "the maths" to tease out what is going on in a multiple, you will be able to explicitly see what the assumptions in the multiple are, and then gauge whether those assumptions are appropriate or not.
Re: Investing Noob
Since there are varying opinions here on FWF on investment strategy, it is possible that any advice given here might be opposite of what this companies methods are and be a detriment to a new employee.Hogwild wrote: ↑02 May 2017 20:44 deaddog:
Your idea is nice, but have you listened to reviews or read research on how much training companies are giving new employees these days? Many companies give minimal training (hopefully not financial institutions or it could be dangerous) and expect new hires to hit the ground running. That's fine when you're slinging burgers, but not so much for knowledge economy jobs.
Investnili, what kind of work will you be doing/what type of department/function will you be performing? Maybe we can suggest some resources once we know that.
Then again as a new employee he'll probably be a gofer and have to figure out how to advance on his own.
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
Re: Investing Noob
Hi,
It seems to me that we should be referring Noob to our own Wiki. Click here http://www.finiki.org/ or look for the red maple leaf above.
It seems to me that we should be referring Noob to our own Wiki. Click here http://www.finiki.org/ or look for the red maple leaf above.
Cheers
"A dividend being paid today is always a positive return." Josh Peters, Morningstar
"A dividend being paid today is always a positive return." Josh Peters, Morningstar