...and market beliefs, I concluded my investment philosophy as the following: Medium and long-term approach is preferred in my portfolio. It takes patience to get long-term returns. Market opportunities occur every day. Yet, success doesn't come for those who seized every chance but for those who knew when to resist temptation. I would emphasis on protecting my nest egg while still in market opportunities. I strongly advocate tactical asset allocation process and diversification over several different income and growth strategies. I believe that risk management and protection of investor's endowment are major objectives. In my portfolio, stocks may occupy a large portion and the rest would be the combination of bonds and funds. My portfolio also covers various industries and fields, mainly concentrating on education, banking, retailing, public utility and some well-known mature organizations in other fields. The use of fundamental analysis that focuses on current performance of a company, the industry, and economy is the most important ingredient in my portfolio management process. I also believe that being aware of the global macroeconomic environment, along with the knowledge on current and historical financial information, could provide a useful idea in the interpretation of current trends. I've been trying to find the firms with stable growth rate or those with strong caterlyzer. All the materials I collected to support my investment decisions were from public information...
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...University of Phoenix Material Philosophy Matrix Field | Definition | Historical Developments | Schools Of Thought | Key Contributors | Principal Issues | Epistemology | The study of knowledge: What constitutes knowledge, the nature of knowledge, and whether knowledge is possible | Pre-Socratics observe and seek to define physical phenomena.Socrates studied human behavior and tried to determine the essential nature of knowledge.Aristotle sought to categorize his observations.The Scientific RevolutionNewtonian influencesFreudian influence | SkepticismRealismConceptualismNominalismEmpiricismRationalismAbsolute IdealismExistentialismPhenomenologyHermeneuticsStructuralismDeconstructionCritical TheoryPragmatismBehaviorismFunctionalism | ThalesAnaximanderAnaximenesLeucippusDemocritusSocratesPlatoAristotlePyrrhoDescartesLockeBerkeleyHumeKantHegelSchopenhauerKierkegaardNietzscheSartreHeideggerFoucaultDerridaRortyJamesDeweyRussell | What is knowledge?What can be known?Is knowledge possible?How do we attain knowledge?Can we trust our memory?How does language affect what we know? | Metaphysics | The study of being: The nature of being and what characteristics make up being | Plato developed the theory of forms and introduced skepticism about reality.Aristotle coined the word metaphysics.Augustine reconciled Platonism with Christianity.Aquinas reconciled Aristotle with Christianity.The Scientific RevolutionIntelligent design...
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...1. How is Yale’s investment philosophy reflected in its strategic asset allocation? Yale’s investment philosophy is one of the critical factors that played into the success of the fund’s performance in the past years. The philosophy is based on 5 principles: focus on equity, diversification, opportunities in inefficient markets, outside managers and alignment of manager’s incentives with Yale’s interests. In the paragraphs below I will discuss how each of these principles is reflected in the endowment’s asset allocation, as shown from Exhibit 1. Yale’s belief in equities is reflected through the endowment’s heavy allocation in equity from 1985-2010. The weight allocation, however, is heavier in the earlier years (1985-1999) than in later years (1999-2010). In the early years, the allocation equity (both domestic and foreign) has been higher than other class assets. From 2000- onwards, allocation to other asset class such as private equity, real assets, and absolute return starting to rise and dominate the asset portfolio. By 2010, the weight of real assets (27.5%), private equity (30.3%), and absolute return (21%) individually are higher than the weight of both equities combined (16.9%). This is not exactly in line with their philosophy focusing on equities. Yale’s second philosophy is diversification to reduce risk by limiting exposure to any single class. This is reflected in their asset allocation over the years. In Exhibit 1, Yale has been consistently investing in 6 asset...
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...Jacob Smith Student Managed Investment Fund September 29, 2014 Investment Philosophy As a student managed investment fund, it is extremely important for us to create an investment philosophy that is well structured, focused, and disciplined. This philosophy should aid us in the making of informed investment decisions, while teaching our members the fundamentals of investment analysis and portfolio management. Our investment fund class should aim to gain practical experience about what it means to be a money manager. Analyzing equities, the state of the economy and our personal views should be the main focus of discussion. Security should be based on these analyses, but must also operate within the parameters and regulations of the fund, set by the professor and our portfolio partners. For purposes of this class, I believe the optimal strategy for security selection is to lean more towards picking stocks for the long run than trying to beat the market because of transaction costs. We should not be trying to beat the market temporarily and must believe that even when a certain stock’s price drops, we should take its intrinsic value into consideration. This means that as a whole our class should believe in the economy’s ability to consistently increase over time and correct temporary fluctuations in the market. Even though the class should be opting for a buy and hold strategy for the most part, things do change from time to time. If a stock is underperforming or a company...
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...but reported a misrepresentation of the recently installed system that was actually not achieving the expected results. Mary requested a report to be written by Joe that the system was performing as projected even though it was not and send a copy to the CEO. It was also a request for Joe to send in a report that the savings portrayed in the original justification documents are being achieved. Joe worked hard to achieve his goals in the company and was worried about Mary’s request and the statement she made to him about having doubts about his ability to perform as a District Manager for the company because of his reluctance to her request. This misrepresentations affect the company financially and the shareholders and their investments. With respect to the legal aspect of this case, it is against the Securities Acts. Management must follow the laws and regulations of the Securities Acts, which prohibits certain types of conduct (Kaplan eGuide, n.d.). According to Kaplan eGuide (n.d.), “The SEC requires that companies submit certain documents for review, including: registration statements for...
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...briefly outline our investment philosophy based on our current knowledge of markets. Further discussed will be the adopted investment strategies as well as techniques for investing on the JSE. Lastly, a listed description of the companies and types of shares that will be invested in. Investment Philosophy: Since there is a time constraint of six month for this investment challenge, this investment strategy will be based on the short to medium term. This is based on our current, acquired knowledge and experience of the market. As time goes by there is expectation that the philosophy will evolve as more will be learned about the markets. After evaluating the personal and financial characteristics of the overall group, the following principles were agreed upon: * Don’t lose capital * Know the stocks you own * Research, Read and Think thoroughly before buying * Invest in no more than a total of eight companies Given the short period, the underlying goal is to make the highest possible profit in this time by carefully studying the market and following the trends produced. Our underlying philosophies based on goals and time horizon are ; to buy stocks based on trend lines and high trading volume; buying after positive market news; buy stocks that have gone up in the last few months, buy small capital stocks with substantial insider buying. The motto being followed:“ As long as the outcome is income”. INVESTMENT STRATEGIES: In choosing an investment strategy, careful...
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...Campbell’s project, less investment needed and government aid in tax. And the stakes for Merck as a company would be the corporate ethic it has pursued and Merck’s need to develop another new successful prescription. Q2. How does Merck pick from among the many ways to “do good” and many drugs to invest in? Merck took 12 years and $200 million to bring a new drug to market on the average. And thousands of scientists worked on new ideas and following new leads. It uses various methods to choose the project through extensive review and analysis on the basis of the likelihood of success, the existing market, competition, potential safety problems, manufacturing feasibility and patent. Q3. How much of its research budget should Merck invest in drugs that will likely produce a substandard return on its investment? The research budget should be considered in research/development expenses, expected income with the tax benefit from the government, and mostly the effect and impact based on the corporate ethics and morale. Q4. What should Merck tell a shareholder who might complain about a decision to invest in research on river blindness? The overall corporate philosophy of Merck is based on the idea that medicine is for the people and never for the profits as the profits follow. And the profits would get larger as the company remembers the idea better. With the corporate philosophy, Merck should tell the fact that the amount of the investment would be less than the usual...
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...1. Yes, Yale Investment Office’s asset allocations are unconventional for a university endowment. The most distinct feature of Yale’s investments compared to other endowment funds is the investment philosophy. The core contents of its philosophy are listed below: 1. First, Swensen strongly believed in equities, whether publicly traded or private. 2. A second principle was to hold a diversified portfolio. 3. A third principle was to seek opportunities in less efficient markets. 4. Fourth, Swensen believed strongly in utilizing outside managers for all but the most routine or indexed of investments. 5. Finally, the Yale philosophy focused critically on the explicit and implicit incentives facing outside managers. For Yale, it focus more on the financial area that is less competitive and full of potentially rewarding, such as the private equity and venture capital. It pay less attention on the stock and bonds. 6. Real Asset Real asset is the long-term asset. First of all, the real asset has low correlation with common stock. Real asset is very different from the marketable securities. As a result, the real asset is low correlated with the marketable securities. Also, real asset can partially protect the investment from financial crisis. Additionally, the real asset can protect the return from the inflation. Real estate can protect the return from the home price sharply rising. The investment in oil and gas can resist the energy-related inflation. ...
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...Assessment of the eight major elements of Buffet's investment philosophy: 1 Economic reality, not accounting reality. Analysis: One tends to agree with Buffett on this philosophy. Accounting is a product of many estimates and judgments. It is essentially a rear-view mirror, looking back at what has happened. To add to the problem the view changes with each new accounting period. In contrast the economic reality is the view through the windshield at what lies ahead. It consists of intellectual property, creativity, know-how and the network of production and distribution systems. The brands and trademarks of a business are the symbols of the economic reality – symbols that indicate the reputation of the company. The economic reality changes much more slowly than the accounting reality as it is dependent on the response of the markets to new products and services that the company has to offer or to any substantive changes - up or down - in corporate reputation. 2. The cost of the lost opportunity. Analysis: Here Buffett is building on the economic principle of the efficient use of scarce resources where the notion of opportunity cost plays a crucial part in ensuring that resources are being used efficiently. The true cost of an investment is what you give up (opportunity) to get it. This includes not only the money spent in buying that asset but also the economic benefits that one has to do without because one bought that particular asset and thus can...
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...Lexi Fatheree KINE 1311 Doctor Ballard 24 September 2014 Philosophy Paper Introductioin: Who am I? Well I am still trying to figure that out myself. I am only nineteen and there are so many things that I have yet to experience. There are so many people that I have yet to meet. But I am taking things day by day, one at a time. I have thought long and hard as to what my philosophy on life is. And that philosophy is “Never Be Satisfied.” Coming from a family of nothing but athletes, this phrase is used in my household a lot; almost every day, actually. It is something that I live by in athletics and in life as well. However, growing up I never fully understood what “never be satisfied,” meant. My Philosophy: The moment I started high school was when I truly began to think about what never being satisfied meant. I already knew how the phrase fit into my life athletically, but athletics was not my entire life. It took me a few years, but I finally realized what “never be satisfied” really meant. To never be satisfied means to never stop growing as a person. Never stop growing emotionally, mentally, and spiritually. Different experiences have affected me positively and negatively, but they have also made me grow as a person. Mentally and emotionally, I have been tested and pushed past my breaking point, but it was an experience that I would never trade for any other. The knowledge I have acquired throughout the years has helped my outlook on the people that surround me and...
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...solid financial future for your family, plan for your retirement years, or begin to enjoy the fruits of your life’s work, is to see your wealth leached away, or worse, disappear due to an unforeseen financial situation. You need to protect what you have. And that’s why we’ve created this report. With it, you’ll learn about the four corners of The Oxford Club’s investment philosophy. They are: Stick to the Oxford Asset Allocation Model: One factor in investing outweighs every other in dictating your portfolio’s performance. It’s asset allocation. And we’ll show you how we’re doing it right now, enabling us to profit while others’ portfolios plunge. Adhere to the Oxford Safety Switch: At The Oxford Club, we never make a recommendation without knowing our exit strategy. That’s the beauty of the safety switch. It lets our winners run and cuts our losers short. Understand Position-Sizing: Knowing how much to invest in each and every situation is crucial to building long-term wealth. Positionsizing ensures that even if a number of your investments turn sour, you’ll never lose your shirt again. Cut Investment Expenses: We’ve said it before, it’s not how much you make, it’s how much you keep. We’ll show you easy-to-understand ways to keep the tax man at bay and stiff-arm greedy brokers. At The Oxford Club, we...
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...does JP Morgan’s Asset Management group make profit? The JP Morgan Asset Management group (“JP Morgan” or “the group”) earns profits by charging direct and indirect fees including commissions on the total assets under management (“AUM”) of $847 bn . The group offers a full range of financial products comprising U.S., non-U.S. and global mutual funds/investment management, across cash management, equity, fixed income segments as well as alternative asset classes, such as private equity and real estate. It has a worldwide client base of institutional and retail clients, including governments, corporations, endowments, foundations and individuals. The equities segment accounts for $370 bn1 AUM spread over a mix of qualitative and quantitative approaches including $76 bn in Behavioral Finance (“BF”) strategies. Hence, BF represents 10% of the AUM of the group and is growing at a fast pace. In the United States, the BF AUM has increased from $100m to $20bn within a space of three years. How do they compete in managing and marketing retail mutual funds? JP Morgan competes with other retail funds by introducing investment strategies to retail investors that are not widely present in the retail mutual fund industry and having an effective and strong marketing. It was among the first global funds to innovate and introduce a retail mutual fund based on behavioral biases by drawing on the relatively recent body of academic findings in BF. The JP Morgan marketing programme...
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...group investment philosophy? 2. What are the key differences between Life-Style funds and Life-Cycle funds? 3. Discuss the pros and cons of Life-Style funds. Explain their rationale. 4. Discuss the pros and cons of Life-Cycle funds. Explain their rationale. 5. Are the Life-Style funds or the life-Cycle funds consistent with the theory (MeanVariance approach)? 6. Would you invest in either Life-Style or Life-Cycle funds? Why, why not? Question 1: What do you think of the Vanguard group as a firm? What is the Vanguard group investment philosophy? Vanguard was founded by John C. Bogle (Princeton University B.A., 1951) in 1975. Prior to The Vanguard Group, John Bogle was part of Wellington Management Company. The Vanguard Group currently manages about $3,148,496 million in assets (according to Northern Trust “Asset Management Ranking Highlights: The Largest Money Managers”), which makes it the second largest money manager after BlackRock ($4,651,896M). The company is mostly focused on mutual funds and ETFs. Index funds were created and offered to individual investors, which introduced significant cost-savings benefits. Their trademark way of doing business is by heavily investing in technology, reducing management fees, and lowering marketing costs. Providing exceptional and exemplary client service has also been part of Vanguard’s repertoire. Mr. Bogle strongly believes in long-term investment strategy versus short-term. In “The Clash of Cultures: Investment vs Speculation”...
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...Philip Fisher Philip Fisher was born in 1906 and died at the age of 96 in 2004. Fisher’s career in business first began in 1928 when he took a job as a securities analyst with a bank in San Francisco. He then switched to a stock exchange firm before opening up his own money management business in 1931 “Fisher & Company”. Mr. Fisher was a very private man, possessed no airs about himself, gave few interviews, and was not well-known to the public until his first book publication in 1958 (Greatest). Today, Philip Fisher is known as one of the most influential investors of all time. He is known as one of the pioneers of the modern investment theory. Fisher’s thoughts have been widely accepted over time, and have been followed by top financial professionals including Warren Buffet. In 1958, Fisher published the first investment book to make the New York Times bestseller list. This book was titled “Common Stocks and Uncommon Profits” and the strategies in the book are regarded as being a gospel to investors today (Greatest). Fisher was the first to consider a stock’s worth in terms of potential growth instead of price trends and absolute value. His principles include identifying long-term growth stocks and their foreseen value, rather than choosing short-term trades to try and inquire initial profit. Fisher also believed in buying a small amount of stocks and tended to hold about 30 stocks, so that he could follow and get all the details about the stocks that he invested...
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... Additionally, your prospective clients are considering other asset managers (your classmates) and will be ranking each according to the success of their portfolio management. You will be able to track how you are measuring up throughout this exercise. At the end of the trading period, if your clients are satisfied with your performance managing their portfolio, they will extend their relationship with you. Specifically, they are concerned about the following criteria: * Returns * Absolute return: The total dollar increase in the portfolio over the trading period * Risk-adjusted return: The return on the portfolio taking into account the level of risk assumed by you, as measured by Holy Cross International’s Chief Investment Officer Mr. Clarke. * You are instructed to have your money spread across different industries to reduce risk, search for firms that are consistently profitable, and keep a reasonable amount of cash on the sidelines. Registration To register your account, go to http://www.marketwatch.com/game/ (The game is titled HCSS-Economics and the password is hcss-economics) Schedule Date | Event | Weeks 1 | Join GameDiscussion with your CFO | Weeks...
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