Value Investing
Who is seen as the "founder" of value investing?
Benjamin Graham
Who is the main advisor for SMIPO?
Dr. Kaushik
P/E ratio stands for...
Price to Earnings
What is the investment strategy used by SMIPO?
Value Investing
What does S&P 500 stand for?
Standard and Poor's 500
Generally speaking, a lower P/E ratio indicates a stock is ______ valued. (Over or Under)
Undervalued
Basic Materials, Consumer Defensive, Consumer Cyclical, Technology, Energy and Utilities, Financial Services, Real Estate, Healthcare, etc.
Name a financial ratio which indicates financial health of a company
D/E, Working Capital, Current Ratio, Quick Ratio, etc.
An investment firm only purchases established, mid to large cap companies, with good balance sheets and consistent earnings. What could this strategy be characterized as?
"Blue-Chip" Investing (Other acceptable answers)
Name 3 of the "Magnificent 7" stocks (Hint: They are all tech companies)
Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla
What are the three main financial ratios SMIPO uses (in a value investing context), when screening companies?
P/E, P/B, and P/S
SMIPO uses what kind of criteria for investing?
Value-Based Criteria
What ratio measures a company's ability to cover it's short term debt obligations with its current assets?
Current Ratio
This type of investing focuses specifically on the payments companies make to share profits with shareholders (This is a common investment term)
Dividend Investing
Name a type of financial model which can be made using Excel
DDM Model, Gordon Growth Model, DCF Model, etc.
ABC Corp. is an upstart company that produces computer chips for consumer-grade laptops and cellphones. They are a "trendy" brand and a stock many retail investors are purchasing, and they have a P/E ratio of 60. Is this a stock SMIPO could likely purchase, why or why not?
No, the P/E ratio of 60 likely wouldn't fit into value criteria. A similar company we could look at could be Nvidia. Although it may be a "good stock" to purchase, it is not one SMIPO can purchase.
Name 3 SMIPO Executive Board officer positions
Name 3 ratios other than the value criteria and explain how they can be used
Answers may vary
This type of strategy is focused mainly around investing in broad ______ such as the NASDAQ, S&P 500, etc.
Index Investing
What are the two cities SMIPO traditionally visits?
New York and Chicago
The modern counterpart of Benjamin Graham is Warren Buffet. What is the name of the company he has been CEO of since 1965?
Berkshire Hathaway
Name one of the currently held best performing stocks in SMIPO, or one which was recently sold
Responses may vary
What is the calculation for ROA?
Net Income/Total Assets
Although not popular in the "academic" or "established" sense, this type of investing can be lucrative with proper training and research. Stocks are held for very short periods of time and sold to make small gains, but over time accumulation of these small gains leads to large gains as a whole.
Day Trading
Name two employers which typically visit SMIPO to recruit
EY, OCC, etc. (Multiple Acceptable Answers)