Pitch the Perfect Investment by Paul D. Sonkin

Pitch the Perfect Investment by Paul D. Sonkin

Moreover, this book greatly helps chief investment officers and research directors with new instruments for a more accurate analytical research, communication development, and overall efficiency and effectiveness of the organization. Throughout the twentieth century, a variety of stock market leading indicators achieved notoriety. It was so-called because the U.S. stock market was said to rise in years that an NFL team won the American football Super Bowl. This indicator was 90 percent accurate in predicting the annual stock market direction from 1967 to 1997. However, the Super Bowl indicator is a random coincidence, the result of overfitting to a limited data set.

— Aswath Damodaran Professor of Finance, New York University Stern School of Business and author of The Dark Side of Valuation, The Little Book of Valuation and Narrative and Numbers. When investors confuse uncertainty (unknowns) with risk (losing money), then opportunity may appear. The reader is taken through the basics of valuing an asset, a business, how to evaluate competitive advantage and value growth with simple examples (The Lemonade Stand). The authors drive home the importance of differentiating between nominal growth and profitable growth. Growth without competitive advantage earning a return above its cost of capital is useless or worse.

Collecting Little Golden Books

He received his MBA in Finance from the Executive Program at the Wharton School of the University of Pennsylvania. He earned a degree in Economics from the University of California, Berkeley.

This book gives you in-depth training along with access to complete online ancillaries and case studies so you can master the little skill that makes a big difference. It doesn't matter how great your investment ideas are if you can't convince anyone to actually invest. Ideas must come to fruition to be truly great, and this book gives you the tools and understanding you need to get it done. If you're serious about success and ready to start moving up, Pitch the Perfect Investment shows you how to make it happen.

Over the last 24 months, investors became more optimistic about Amazon, but increasingly pessimistic about a number of the top brick-and-mortar retailers (Wal-Mart, Nordstrom, Macy’s, and Best Buy are charted below). The media sentiment of these individual companies are compiled in the Thomas Reuters MarketPsych Indices (TRMI). The TRMI Optimism index represents the frequency of positive, future-tense references about a company verses those that are negative in millions of articles daily from thousands of news and social media sources. The 200 day-averages of media optimism about each retailer are plotted in the chart below.

The crystal clear communication made it easy to skim and pull out important points. Literally think this is the only book on investing you'll ever need (especially if you're considering a career on the buy-side). The chapters about EMH, variant perception, thinking about consensus and how to structure the pitch are probably worth the price of the book itself.

At this point in the book we will have shown how to vet the perfect investment. The next part discusses the key elements of pitching that investment to a portfolio manager. We then explain how investors set stock prices, which entails a detailed discussion of market efficiency.

• The crystal clear communication made it easy to skim and pull out important points.
• NVGS has the dominant position for transporting that product which requires special handling (super low temperatures and pressure).
• We begin in Chapter 5 with an examination of Eugene Fama’s efficient market hypothesis, where we establish the rules the market follows to set prices.
• Growth without competitive advantage earning a return above its cost of capital is useless or worse.
• Money managers, analysts, bankers, executives, salespeople, students, and individual investors alike stand to gain massively by employing the techniques discussed here.

This is true since Wall Street is a tight environment, and only the fittest and most prepared make it big. This book employs a rapid knowledge acquisition for MBA students to develop skills and acquire knowledge crucial in the world of investment.

Learn the overlooked skill that is essential to Wall Street success Pitch the Perfect Investment combines investment analysis with persuasion and sales to teach you the "soft skill" so crucial to success in the financial markets. Written by the leading authorities in investment pitching, this book shows you how to develop and exploit the essential, career-advancing skill of pitching value-creating ideas to win over clients and investors. You'll gain world-class insight into search strategy, data collection and research, securities analysis, and risk assessment and management to help you uncover the perfect opportunity; you'll then strengthen your critical thinking skills and draw on psychology, argumentation, and informal logic to craft the perfect pitch to showcase your perfect idea. The ability to effectively pitch an investment is essential to securing a job on Wall Street, where it immediately becomes a fundamental part of day-to-day business.

Money managers, analysts, bankers, executives, salespeople, students, and individual investors alike stand to gain massively by employing the techniques discussed here. Even if an investor does not have a boss to pitch to, the investor should always write down a succinct investment case for each investment. Let us know what’s wrong with this preview of Pitch the Perfect Investment by Paul D. Sonkin.

It has been a long road to find a strategy worth deploying capital into, and based on our prior experience, trading delusions can easily become enshrined in predictive models. For example, Navigator Holdsings (NVGS) has a dominant position in handy-size petrochemical transportation and it trades at 55% of net asset value, its balance sheet and flexible fleet allows it to be profitable despite a perfect storm in the LPG shipping market. One of the most famous value investors, Wilbur Ross bought into NVGS at an average price of $8.73 over three years ago for a 50% stake. The current lows in freight rates due to A, B, C are unsustainable due to 1, 2, 3, therefore normalized rates will mean much higher values.

"Pitch a Perfect Investmentsucceeds at elucidating a set of concepts that are often difficult to wrap your brain around. There are many misconceptions regarding how the investment management industry works, Sonkin and Johnson do a great job of succinctly and judiciously laying out the truth regarding what's really happening in this world." -Leigh Drogen, Founder and CEO, Estimize Inc. With 30 years of experience in the field of finance, Johnson utilized his knowledge to work as an investment professional. One element that can help an individual ace the market is adequate knowledge. With proper knowledge, fear and anxiety are minimized, all while the possibility of larger profits is maximized.

We begin in Chapter 5 with an examination of Eugene Fama’s efficient market hypothesis, where we establish the rules the market follows to set prices. We discuss the wisdom of crowds in Chapter 6 and show how these rules are implemented in the market. We then discuss behavioral finance in Chapter 7 to show how these rules can become strained or broken.

He received his MBA from Columbia University Graduate School of Business. Nicholas Gallucio, CEO of Teton Advisors, added, “In this era of hyper-competition on Wall Street, active portfolio management is under attack by ETFs and passive investment vehicles. In this new environment, beating the market is even more essential to the active portfolio manager and even the smallest edge can make the difference between success and failure. Whether you work at a money management firm, hedge fund, investment bank, or private equity firm, the ability to pitch a compelling investment idea determines not only your bonus, but your success on Wall Street. To ask other readers questions aboutPitch the Perfect Investment,please sign up.

"It is rare that you get a book on finance that is fun to read, immensely informative and deeply insightful. Sonkin and Johnson have pulled off the trifecta in this book. Read it if you work in the investing business already, plan to work in it or want to make sense of an investment pitch made to you."? Aswath Damodaran Professor of Finance, New York University Stern School of Business and author of The Dark Side of Valuation,The Little Book of Valuation and Narrative and Numbers. We selected this structure because an analyst has two distinctively different responsibilities.

PAUL D. SONKIN has more than twenty-five years of experience in research on nano-cap companies. He previously worked at The Hummingbird Value Fund and the Tarsier Nanocap Value Fund for fourteen years under the same position.