Equity Research For Technology Professionals At The Wharton School by Sundeep Bajikar

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I presented on the topic of Equity Research for Technology Professionals at The Wharton School in San Francisco on Friday, June 3. You can view the presentation below.

Equity Research for the Technology Professional: State of the Industry - My View

  • Large Institutional Asset Managers losing assets
    • Smaller independent managers gaining
    • RoboAdvisors gaining
  • Early stages of secular disruption?
    • Tech advances = Commoditization of financial analysis
  • Natural bias toward Value Investing
    • Requires Equity Research

What is Equity Research?

Equity Research

  1. Estimate intrinsic value
  2. Assess Margin of Safety

Analysis vs. Insight: The Machines are Coming

Equity Research

Beating the Market = Being Different

Equity Research

What is Risk?

Equity Research

Are Markets Efficient?

MPT & CAPM

Markets are efficient at all times

Market prices always reflect intrinsic value of a stock

The market understands everything about Tech

Value Investing

Markets tend to be inefficient over the short-term

Short-term volatility presents opportunities to invest

The average investor knows little if anything about Tech

Time Horizon ~ Look Ahead Distance

2.4 - Seeing

To be a safe driver you need to know what’s going on all around your vehicle. Not looking properly is a major cause of accidents.

2.4.1 - Seeing Ahead

All drivers look ahead; but many do not look far enough ahead.

Importance of Looking far Enough Ahead.

Because stopping or changing lanes can take a lot of distance, knowing what the traffic is doing on all sides of you is very important. You need to look well ahead to make sure you have room to make these moves safely.

How far Ahead to Look. Most good drivers look at least 12 to 15 seconds ahead. That means looking ahead the distance you will travel in 12 to 15 seconds. At lower speeds, that’s about one block. At highway speeds it’s about a quarter of a mile. If you’re not looking that far ahead, you may have to stop too quickly or make quick lane changes. Looking 12 to 15 seconds ahead does not mean not paying attention to things that are closer. Good drivers shift their attention back and forth, near and far. Figure 2.6 illustrates how far to look ahead.

Equity Research For Technology Professionals At The Wharton School

4SAFEt  - A Framework for Analysis

Equity Research

See full slides below.