Investor’s psychology and financial planning
Having a rich mindset is the foundation of lasting wealth. We believe that the major part of financial success is psychology and the minor part is mechanics. The first step is becoming familiar with the basic principles of saving and investing, and the “magic” of compound interest. The second one is to be aware of how systematic investing creates wealth in the long term. We will cover the two main approaches to investing, the Momentum Model (dealer’s mindset) and the Buy & Hold Model (owner’s mindset) and students will learn the characteristics of different types of investment assets.
For this course students will be asked to work on personal/family budgeting and design their own long term financial plan.
Entrepreneurship and private equity
Entrepreneurship is the process of imagining, developing, organizing, and running a new business. Every business we know was once a start-up. Setting up a new business is very risky, and most entrepreneurs fail. That is why our students will learn both the causes of success and failure. To start a new business requires to comply with certain legal steps and regulate the partners relationship. In this module we will also: pay attention to which elements determine the potential profitability of a business; analyze the cost structure of most industries through a P&L account; draw a business plan; examine the main challenges involved in executing a plan; and learn how to create a profitable business.
Private equity investing is buying a stake of an existing company expecting to make profits by both the increase in its value and the yearly dividends. The logics of entrepreneurship apply to this kind of investment, but here the key is to be wise at assessing the fair value of a company when you buy the stake. Students will be asked to assess the feasibility of some business ideas that they will be presented with and infer the fair value of a company.
Real Estate Investment
Real estate investing involves the purchase, management and sale or rental of a property for profit. Returns from real estate come traditionally in two different forms: monthly rentals and long-term appreciation. In this course students will learn: how to value a piece of property; strategies to add value to a property; why debt leverage is a key driver of profitability; what are the different types of property: residential, commercial, hospitality, logistics,… and how the dynamics of each of them affects the investor; regulations and taxation; to write the most common type of contracts: rentals and earnest money; and basic land development concepts.
Students will be asked to assess different real estate opportunities and explain why they think they are either sensitive investments or not.
Financial markets refer broadly to any marketplace where the trading of securities occurs. There are many kinds of financial markets; the main four are money, currencies, stock, and bond markets. We will focus on the market that may better help our students achieve financial independence: stock markets. At the end of this course our students will be familiar with: what is an index and how passive investing refers to them; the history of financial bubbles and crisis; the concept of value and growth investing; the commissions they better avoid; what is an ETF’S and a mutual fund; the difference between technical and fundamental analysis; and understanding financial information.
Students will be asked to read financial statements of different companies and consider the nature and strategy of each company, assessing whether buying their stock at current prices is a sound idea.