Introduction to Accounting and Financial Statements

• Content & uses of company accounts and the principal-Agent problem
• Understanding the income statement, balance sheet and cash flow statement
• Accrual accounting and other key concepts
• Linking together the financial statements
• Introduction to ratio analysis

Recap on accounting and ratio analysis concepts

• Cement previous days’ learnings
• Accounting and ratio analysis test
• Investment lessons from Warren Buffett, Ben Graham, and Anthony Bolton
• Analysing differences across sectors

Introduction to equity investing

• Investment lessons from Warren Buffett, Ben Graham, and
  Anthony Bolton
• Analysing differences across sectors

Investment styles

• Value vs. growth and the impact of style on performance
• Value and growth company case studies
• Active versus passive investing and smart beta

Frameworks for understanding and analysing a business

• Create an investment checklist

• Using the BAlTIM framework

Individual company analysis exercise and presentation

• Analyse a company and develop the investment case
• Pitch investment case to the group and handle challenging questions

Understanding Equity Valuation Techniques and Financial Modelling

• Perception versus reality and price versus value
• Overview of relative, intrinsic, asset-based and
  option-pricing valuation approaches
• The debate about efficient markets and
  examples of valuation anomalies
• Intrinsic valuation methods, including: DCF, DDM,
  EVA, CFROI
• Relative valuation methods, including: PE, PEG,
  EV/EBITDA, P/S, P/CF, P/BV

Practical Application of Generative AI for Investments

This session offers the essential knowledge of what Al is and how it operates, tailored for real estate professionals eager to incorporate Al into their business practices. It is designed to be accessible to everyone, irrespective of technical background, providing a necessary foundation for all subsequent sessions and future independent work with Al. More specifically, the session
covers.

• Strategies for minimising Al output errors, effective prompting techniques, and an overview of the top Al products.
• An accessible overview of artificial intelligence, with a particular focus on conversational Al and advanced language models like GPT-4.
• The distinction between Al and traditional software, highlighting Al’s ability to derive rules from objectives, in contrast to the predefined rules in conventional software.
• The inner workings of neural networks, the Al learning process, and text understanding through techniques such as tokenisation, embedding, and self-attention.

Basic concepts in financial maths

• Compounding and discounting
• The time value of money
• Standard deviation and the normal distribution

Applying basic concepts

• Valuing a bona
• Valuing an equity

The history of investing as a ‘science’

• Introduction to Modern Portfolio Theory (MPT)

MPT in practice

• Understand the advantages and disadvantages of MPT, the Capital Asset Pricing Model and Efficient Market Hypothesis
• Calculating WACC
• Consider alternative perspectives on risk

Exercises

• Practical application of key concepts