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Business and Industry Analysis

Business and Industry Analysis. Think about the difference between insider information and private information.Insider Information is something that only an insider could knowMartha Stewart selling Imclone sharesPrivate Information is information that only you know, but not through insider inform

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Business and Industry Analysis

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    1. Business and Industry Analysis Rory Priday Tracey Shi Harvard Financial Analysts Club

    2. Business and Industry Analysis Think about the difference between insider information and private information. Insider Information is something that only an insider could know Martha Stewart selling Imclone shares Private Information is information that only you know, but not through insider information Inference Judgment Local Knowledge (Home Depot, Nokia, EMC, Dell, etc.)

    3. Objective We will teach you how to think about businesses and industries so that you can learn how to discover private information.

    4. Business and Industry Analysis Business Basics Fundamental Equation of Business Competition Competitive Advantages Structured Business and Industry Analysis Models Porter’s Five Forces SWOT Analysis 4 Harvard Financial Analysts Club

    5. Fundamental Equation of Business Profitability of a Business Depends on Five Factors Return on Sales (Profit Margin) Asset Turnover (Sales volume) Amount of Liabilities Cost of Liabilities Tax Rate Focus today on return on sales and asset turnover Preview for Accounting Presentation: Assets = Liabilities + Equity

    6. Return on Sales (Profit Margin) 2 ways any business can generate sales Selling a product Selling a service We want to purchase businesses that sell either a unique product or a unique service.

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