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Investment Ideas Club Kick-Off Meeting

Investment Ideas Club Kick-Off Meeting. Objective / Format. Objective: Provide a low risk environment to help participants improve their pitching skills Developing an investment pitch is the best ways to prepare for investment management interviews Format:

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Investment Ideas Club Kick-Off Meeting

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  1. InvestmentIdeas ClubKick-Off Meeting

  2. Objective / Format • Objective: Provide a low risk environment to help participants improve their pitching skills • Developing an investment pitch is the best ways to prepare for investment management interviews • Format: • 6 meetings over the year (Fall: 09/21, 10/12, 11/16) • First meeting open to all interested, submission of a write-up required for all subsequent meetings • 2-4 judges, 10-25 students pitching

  3. What is a stock pitch? • Buy or sell recommendation on a bond or a stock • In the context of the IIC, recommendation supported by: • 2-page write-up (plus up to 1p of exhibits) • 2 ½ min oral presentation, followed by 2-5min Q&A • Objective is to demonstrate that you have the skills required to be a successful analyst (not to find the next 10-bagger) • A good stock pitch requires rigorous research to support the investment thesis; this cannot be emphasized enough

  4. Tips for finding compelling pitch ideas • Look for ideas that have a “hook”: • Differentiated investment thesis • Special situations (spin-offs, restructuring, etc.) • Off-the-radar companies • Looks for ideas that are interesting to your audience: • More than $1bn market cap, sufficient trading volume • Preferably North American companies • Work within your circle of competence • New to Investing? Research a company in your old industry!

  5. Written Pitch – 2 Pages • Heading • Your name and email address • Name of the company • Long or short • Share price and price target • Summary of the capital structure • Key trading statistics and valuation • Summary financials • Price graph

  6. Written Pitch – 2 Pages (cont’d) • Business description • Be concise, pick businesses that are straightforward to understand • Investment thesis • 1-3 areas of difference between your view and the market view • Your differentiated view on the company, not the sell-side view • Conclusions supported by facts, not a book report • Catalysts (especially necessary on the short side) • Risks • Most likely reason why you would be wrong + quantify

  7. Oral Pitch – Structure • Clear recommendation upfront (1 sentence) • Include company name, current price, market cap • Short business background if necessary (2-3 sentences) • Investment thesis • 1-2 key differentiating factors • Valuation • Catalysts (preferably) • Risks (preferably)

  8. Oral Pitch – Format • Stick to time available: 2min – 2½min max • Favor simplicity over complexity • Go to your thesis quickly • Balance conviction with humility • Know what you don’t know • Don’t know the answer to something? Explain how you would think through finding the solution. Don’t guess!

  9. Questions?rrainosek13@gsb.columbia.edurdecrayencour13@gsb.columbia.eduQuestions?rrainosek13@gsb.columbia.edurdecrayencour13@gsb.columbia.edu

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