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Academy 01 Introduction to stock-market investing. Welcome to B&R Beurs. Est. 1983 – Lustrum VI Core: Investment groups Highlight: Investment Week & Symposium. Peter Paul de Vries, B&R alumnus. What Can You Expect?. Introduction Weekend. Kickoff Investment Competition.
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Academy 01 Introduction to stock-market investing
Welcome to B&R Beurs • Est. 1983 – Lustrum VI • Core: Investment groups • Highlight: Investment Week & Symposium Peter Paul de Vries, B&R alumnus
What Can You Expect? Introduction Weekend Kickoff Investment Competition Social Drinks, Exclusive Events & In-House Days May July October November - Investment Awards Academy Formation Period Symposium Investment Week
B&R Academy • By B&R for B&R • Sharing knowledge • Basic to advanced lectures • PowerPoints now, VoD “soon”
Investing • “The act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit. Investing also can include the amount of time you put into the study of a prospective company, especially since time is money.” - Investopedia
Purpose of investing • Making a profit • Having something to talk about • Thrill • Fun
Who is investing? • Asset managers • Blackrock $3,6tr. • UBS $2,3tr. • Allianz $2,2tr. • Pension Funds • Japan Government Pension Fund $1,4tr. • Norway Government Pension Fund $0,7tr. • Pensioenfonds ABP $0,4tr. • Mutual Funds • Hedge Funds • Companies You!
What can you investin? • Money markets • Bonds • Derivatives • Indices • Commodities
History of stocks • First stock exchange in the 17th century • Dutch East Indies Corporation • Not much has changed
How does it work? Thomas 60$ • Thomas has a company • Thomas needs money • Thomas raises 20$ from Daniel by issuing stocks Daniel 20$ Thomas 60$
Why do they exist? • Company wants to raise money • More investments • Change the capital structure • Liquid instrument • Dispersion of ownership • People wants stocks because of good returns
Stock Value • Value derived from dividends • Anticipation of the future • Gordon Growth Formula
Stock Styles • Growth/Value • Is the stock price mainly driven by the company? • Pro/Anti cyclical • How much does the stock price move with economy? • Trend/momentum • Will the stock behave in the same way as last year?
Stock Styles • Growth/Value • Is the stock price mainly driven by the company? • Pro/Anti cyclical • How much does the stock price move with economy? • Trend/momentum • Will the stock behave in the same way as last year?
Grouping Stocks • Country • German stocks • Industry • Pharmaceuticals • Style • High dividend yield • Combination • German pharmaceuticals with a high dividend yield
Stockindex • What’s a stock index? • What’s their function?
Bubbles are fun • Dutch Tulip Mania
Could that happen again? • Internet bubble • Housing bubble • Credit bubble • ... • Oil bubble?
Assignment • Watch financial news • Next week: • Bonds • Buying a stock • Binck