I was studying for the CFA Level II on Sunday and I noticed that some of the topics covered in the Equity Analysis portion were items that I was pondering earlier including: alternate method of including the value of risk in DCF, inflation as a reasonable proxy for long term sustainable growth in a GGM or DDM, the constant relationship between ROE, k, PE, Dividend payout / retention, growth rate etc.
I'm very excited to be starting my study for the CFA Level II. Already, I'm learning a lot and getting confirmation and validations on some of the ideas I had pondered earlier as well as correction on some misconceptions.
So far, I'm particularly impressed with the integration of macro economic factors on valuations and approximating growth rates and factor variables in valuations via economic indicators (GDP growth, inflation, CPI etc). I am absolutely fascinated at the interplay and relationships for how different disciplines of study interact and how the mechanics of economics and strategy affect the mechanics of finance. Also, I think that the topics covered are pragmatic and absolutely brilliant in terms of applying theory in practice.
Optimizing After-Tax Returns on Options
5 months ago
3 comments:
Hey! Good Luck with your Level 2. I read your blog before appearing for my Level 1 in December.Now I am ready for Level 2 in June. Also I might be joining Queens MBA this May. I intend to start a new career in Asset Management. I was wondering how things work in Canada it would be nice if you can write an article about people planning for careers in Asset Management. I believe you would have already accumulated enough knowledge in this regard to help others. Thanks for the help
Thanks for reading MM! That sounds like a great idea as many of my buddies are also currently looking for careers in Asset Management and buy side. I'l make that my next post!
Thanks Man. I will look forward for that.
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