The Culverhouse College of Business’s Value Investing Concentration provides students with a strong foundation in all critical aspects of the investment process, including generating good ideas, conducting fundamental business and industry research, the in-depth analysis of financial statements, and the ultimate arrival at a credible estimate of what a business is worth.
The curriculum focus is on practical application and is meant to help prepare students for a broad range of business careers, including investment management, investment banking, private equity, management consulting, corporate business development, corporate finance, and entrepreneurship. Ideally, students will also be better prepared for life, as the central tenets of value investing – including discipline, patience, independent thinking, and avoiding risk – should prove valuable regardless of the particular career path taken.
This course introduces the fundamental principles of a value-based investing approach. It develops students’ abilities to understand and assess industry dynamics and competitive advantage, to assess and critique corporate strategies, to critically examine corporate financial statements, and to credibly value what companies are worth.
Students will refine and enhance their investing skills, primarily through real-life case studies of specific investment opportunities currently pursued by successful professional investors. Special emphasis will be put on improving understanding and skills around financial analysis and valuation. Students will also learn the basics of portfolio management, how to recognize and overcome common cognitive biases that hamper sound decision-making, and, through consistent practice, will develop their abilities to make articulate written and verbal arguments.
Financial statements provide a treasure trove of information for the discerning analyst, and this course is meant to further develop students’ understanding of the accounting process, the full range of financial information available, and how to translate what can be static numbers on a page to actionable insight for investing decisions.