This week’s meeting consisted of starting with a newly implemented rule. From this point forward, sessions will begin with a current events presentation led by a new member each week. We suggest that current events presentations focus on Israel, foreign and emerging markets, or the United States. Starting sessions in this manner will allow our students to stay informed, engaged and connected with Israel, as well as markets and events outside of the US. This week, new members Maddy and Sydney discussed Google removing themselves from the future investment initiative summit in Saudi Arabia due to the disappearance of journalist Jamal Khashoggi. Additionally, Jacob and Joe spoke about the stock market’s recent volatility.
Following these presentations, Gabby (VP Consulting) led the consulting session which covered market analysis. Students learned that conducting due diligence on the industry or market you’re focusing on is crucial in order to stay competitive and on par with similar companies in said sector. The history and background of the company is useful as well and can be used to complete your decision-making process. Market analysis allows a company to dig deeper and understand your target market, consumer habits, etc…
Before transitioning, students from both the consulting branch and investment fund listened to a relevant TED Talk. Ray Dalio, American billionaire investor, spoke about transparency in the workplace, how and why consumer decisions are made, and why it is crucial to have a mission statement that drives your business and inspires your customers. His speech was very eye opening and influential.
Students underwent another weekly education session with topics covering EBITDA and the various valuation methodologies. Matt (VP Investment Fund) walked students through the importance of certain ratios and multiples in order to piece together parts of a comparable company analysis. Students also worked in a collaborative setting by sifting through Ralph Lauren’s 10k and extrapolating data such as operating profit, gross margin and EBITDA. Getting familiar with the different financial statements early on will enable students to become more comfortable when pitching a stock or conducting equity research. It was a tough session but new members handled the information well by asking questions and remaining attentive.