Course Description
One of the things that scares people about investing is the prospect of losing all their money if an investment decision to buy a stock leads to a company going out of business or becoming significantly impaired. It’s a justifiable feeling because it is true. When you buy a stock you do run the risk of possible losing some or all of your investment. It doesn’t matter if it’s a bank or a biotech stock. There is a level of likelihood and that varies by degrees that you can lose money.
In this module the we will drill down into the whole concept of risk which plays a critical factor in how we decide what stocks to buy and sell. We spend a great deal time focussing on key metrics such as profitability, sales growth, and cashflows. So much so that we overlook a fundamental pillar when we framing our decisions which is the likelihood that the investment doesn’t pan out.
The protege will learn to evaluate and determine how risky a stock is and they can use this information to determine whether the stock is worthy buying or avoiding or selling if they currently are owning a stock in our portfolio.
The module will provide the protege with some core tools that are readily available to help them understand the other side of the investing decision and more importantly to take some of the fear they might have with losing some or all of their hard earned savings.
Estimated Course Time: 1 hour 13 minutes (not including tutorial)
Math-i-ness Factor: (1=No Math, just concepts, 10=breakout the spreadsheets and calculators!)
8 - There's some math, but fear not, with our spreadsheet template we take some of the number crunching off your hands!
Investment Coach and Founder - Sage Investors
Aman Raina, MBA
Course curriculum
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1
Introduction and Administration Items
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Administration Items
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Download Slide Presentation
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Module 4-Podcast
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Introduction
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2
Risk: The Gorilla In The Room
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Slide 1
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3
Cost of Capital
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Slide 2
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4
Cost of Capital: Ingredients and Variables
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Slide 3
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5
Components of Cost of Capital
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Slide 4
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6
Cost of Debt
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Slide 5
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7
Cost of Equity
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Slide 6
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8
Putting It All Together: Cost of Capital
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Slide 7
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9
Cost of Capital of WinPak
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Slide 8
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10
Cost of Capital of WinPak (continued)
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Slide 9
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11
Cost of Capital of WinPak (continued)
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Slide 10
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12
Cost of Capital of WinPak (continued)
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Slide 11
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13
Impact of Capital Structure on Risk
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Slide 12
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14
Variables Which Can Impact Cost of Capital
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Slide 13
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15
Back of Envelope Calculation
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Slide 14
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17
Role of Risk In The Investment Decision
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Slide 16
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18
What Do We Know Now?
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Slide 18
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19
Homework
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Slide 19
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20
Final Thoughts
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Final Thoughts
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21
Tutorial: Cost of Capital Calculator Template
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Cost of Capital Calculator
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Cost of Capital Calculator Tutorial
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22
Module Evaluation
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Feedback
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$99.00Module 8: Cognitive Biases
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$99.00Module 7: Investment Products
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$99.00Module 6: Making the Investment Decision
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$99.00Module 5: Measuring The Value of Stocks
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$99.00Module 3: Understanding The External Investing Environment
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$99.00Module 2: Reading and Interpreting Financial Statements
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$99.00Module 1: Principles of Capitalism and Investing