How can a person be a financial Investor?
Posted by admin in Finance
Friday, 4 November 2011 10:00
I mean what a specific major(s) in college can help a person be successful in Investment field? On the other hand, Are there any sources that can help analyzing financial data in order to make a decision on investment?
any major is good, but make sure you are top of your class. A finance major or MBA will help. To be successful in investment you need to learn by practicing and understanding all the financial instrumenst. What is a call or a put option, what is shorting a stock, what is being long, what are bonds and how do they trade, what is collaterization,…etc
Securities prices (bonds, stock,etc…) are a function of future earnings and risk. Macroeconomics, industry specififc data, company data, management…will help understand the impact on future earnings. They what are each securities NPV, future free cash flow, what are the multiple of earnings to use…thise are questions that you need to answer. At the end of the day it is more an art than a science.
Good luck…have fun out there.