1 / 9

Fin 4201/8001

Fin 4201/8001. Warren Buffett and Real World Investing. Layout of the Class. What’s my grade??? Exams = one or two Group project ≈ Final Participation/Attendance What topics? Warren Buffett Firm valuation Behavioral Finance. Warren Buffett. #2 Warren Edward Buffett

felix
Download Presentation

Fin 4201/8001

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Fin 4201/8001 Warren Buffett and Real World Investing

  2. Layout of the Class • What’s my grade??? • Exams = one or two • Group project ≈ Final • Participation/Attendance • What topics? • Warren Buffett • Firm valuation • Behavioral Finance

  3. Warren Buffett #2 Warren Edward Buffett Net Worth: $40.0 billionSource: Investments, Berkshire HathawaySelf madeAge: 75Marital Status: Widowed, 3 childrenHometown: Omaha, NEEducation: University of Nebraska Lincoln, Bachelor of Arts / ScienceColumbia University, Master of Science

  4. Berkshire Hathaway

  5. Firm Valuation • Supplemental book, but I’ll give you all you need. • Look at syllabus for outline • Presentation as if pitching to Warren

  6. Behavioral Finance • We fall prey to our own heuristics • Again supplemental book is good reference • Efficient Markets Hypothesis • Can’t explain some things • Examples follow but will examine more later in the course

  7. Human Behavior Examples • Piece of paper is folded in half, then half again. After 100 folds how thick will it be? • 1.6 billion trillion miles • Compared with what you see on the street, how many of you are above average drivers? • One survey had 82% of respondents claiming to be above average.

  8. Human Behavior Examples • A fair coin has come up “tails” four times in a row. What do you bet on next? • Honestly, would you really pick tails?? • Equal chance win $19 vs. lose $20. • Bet? • Does it change if you are already up $200? • House money effect

  9. Start Video • Any Questions????????

More Related