Advanced Investment Research (Ghazi) FA2016

Columbia University
Graduate School of Business

Advanced Investment Research
Tuesday, 6:30 p.m. -9:30pm
Course Description and Outline:

Location: Uris 305
Professor:
Kian Ghazi
Email: [email protected]
There are no official office hours. However, Professor is easily accessible via email between class
sessions.
Course Overview:
This will be a demanding class meant for the student intent on entering the investment
management industry post-graduation. As such, only students who demonstrate a compelling
interest in professional investment management will be admitted, and admission will be limited
to 10 students to ensure quality of experience for all involved. This seminar is not open to the
bidding process and no auditors will be allowed.
The purpose of this section of Advanced Investment Research is to help students learn how to "rip
apart" a company and draw thoughtful conclusions about whether it might make for a good
investment opportunity. Topics will include stock selection, identifying the key investment factors,
developing a variant view, and networking with industry contacts to help confirm or refute one's
thesis. The class will culminate with students delivering a detailed research recommendation on a
single investment idea to a panel of judges. The goal is for students to leave class with an
actionable investment idea and a framework for how to develop and research ideas in the future.
This class will be demanding and potentially overwhelming if you are not prepared to dedicate
significant time and energy to it. Students should expect 20-25 hours of work per week outside of
class, and the work load may be higher if you have not previously done detailed fundamental
investment research. We recommend that you do not take this class if you are unable to put in
this amount of time because you will not be able to keep up, and you will not be happy with your
final grade. Note: this class will also include a substantial pre-class assignment which will be a
material part of the final grade.
Class Structure:
Investment management is not a subject that is optimally learned via lecture and passive
response. Advanced Investment Research has been designed with this reality in mind. Class
discussion will be driven by the work that you and your classmates do on weekly
assignments. As such, we view 20-25 hours as the minimum weekly commitment to meet the
course goals, and we recognize depending on your background that more may be required. The
assignments will require significant research effort plus creativity and business judgment. We
also hope they will be enjoyable and productive.
The first half of this course will build a framework to combine publicly available information and
sound business judgment to decide whether a particular security is worth extensive
research. Students will use an analytical tool called a Combat Pack to evaluate an assigned
company each week. The goal at this stage is to identify the drivers of the business, why a
potential mispricing may exist, and the critical research necessary to prove out the investment
thesis.
In the second half of the course, students will select one company (from a provided list) on
which they will conduct deep research, culminating in an investment recommendation and stock
pitch to a panel of industry veterans who will act as PMs/judges.
Agenda:
Class 1 Course Overview & Syllabus

Class 2 Barriers to Entry and Business Quality
Class 3 Valuation Framework
Class 4 Stock Selection
Class 5 How to Interview Management
Class 6 Guest Lecture: CFO
Class 7 Guest Lecture: PM
Class 8 Value Added Research (VAR)
Class 9 Thoughtful Analytical Work as the Basis for a Variant View
Class 10 Initial Research Project Learnings / Presentations
Class 11 Investment Mistakes Case Study
Class 12 Final Presentations
Class Assignment Descriptions
Type
Designation
Discussion of
concepts
group/group
group/individual
Permitted with
designated
group*
Permitted with
designated
group*
individual/individ
ual
(An optional
additional
category to be
defined in detail
by the individual
faculty member).
None of any
kind
Preparation
of
submission
By the group
Individually
(No sharing
of any portion
of the
submission)
Individually
Grade
Same grade for

each member of
group
Individual
Individual
*All assignments will be type B (group/individual)

Pre-Class Assignment:
Read The Curse of the Mogul, Chapters 1-5. Write a 1-2 page response summarizing your
thoughts on business quality and competitive advantage.
Complete your first Combat Pack.
Pre-class assignments are due by midnight on Friday, August 28th. All assignments should be
submitted electronically to the relevant folder in Canvas. Late assignments will not be accepted.
The pre-class assignment will be posted to canvas.
Feedback will be given via in-class interaction. Class sessions will discuss the assignments in
detail, including references to specific portions of your individual submissions.
Weekly Assignments:
The most time intensive assignments are the combat packs, and students will prepare one per
week for the first half of the semester. Additional assignments for submission will be given on a
weekly basis. All assignments must be submitted by Monday at noon, to allow the Professor
time to review work before class.
By Tuesday at noon, we will distribute 1-3 combat packs completed by your classmates. 1 or more
of these combat packs may be on a company that was not assigned to you. Please read these
combat packs thoroughly before class, as you will be responsible for the content. We expect lively
discussion, and your familiarity with all companies discussed will enhance the class for you and for
your classmates. You are not required to do additional work on companies not assigned to you,
outside of reading and understanding the distributed combat packs. It may take 45 minutes or
longer to digest each combat pack, so plan your schedule accordingly.
Course Materials:
The Curse of the Mogul, Bruce Greenwald.
SEC filings, conference call transcripts and other reading for your assigned companies.
Grades:
Grades will reflect knowledge and application of the course material and communication skills.
This course is intended to be interactive and class participation will be crucial to the success of this
class.
Grades will be calculated as follows:
40%
20%
40%
Weekly Assignments (Individual)

Class Participation
Final Project (Individual)

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What are the goals of the weekly assignments?

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Columbia University

Graduate School of Business

Course Description and Outline:

Class 1 Course Overview & Syllabus

Class Assignment Descriptions

Same grade for

*All assignments will be type B (group/individual)

Weekly Assignments (Individual)

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