CMCnotes

Careers in Finance follow-up

Additional resources available to members

Dan Pickett 0 48 Article rating: No rating

In my 9/23 Zoom meeting I neglected to mention the CMC blog on the club website where members can find interesting notes on company analysis, financial modeling, and career development. In the latter category and related to the discussion of career opportunities, you will find several videos of CMC alumni and friends offering career advice to members and posts focused on jobs. The Alumni Panel and Three Formulas for Acing Your Next Job Interview should be of particular interest.

I also want to reiterate my comment about following the market. A part of that is staying current on the news affecting markets. The Wall Street Journal is read daily by most practitioners and offered to students at a steep discount. The Financial Times is another popular news source offering broad international coverage and also offered tat a discount. I believe both are also available in the Grainger Hall Learning Commons.

There are many other free resources including news clipping services like The Morning Brew and The Water Coolest, which target students and provide a decent short (irreverent) summary of major stories and links to additional resources that can be helpful for newer investors including this guide to resources for finance beginners included in this morning's Morning Brew.

There are also many free blogs that cover the markets, economics, and companies. A couple examples include Edge and Odds which is run by a retired portfolio manager and covers a range of topics all market-related, Musing on Markets which is run by Aswath Damodaran an NYU professor and valuation expert, and Cumberland Advisors which is run by a well-regarded advisory firm and features economic and market commentary. Most offer an option to push posts to your email and usually focus on issues relevant to professional investors. Staying informed and understanding the issues will demonstrate your passion for investing which is important to prospective employers. When you meet a practitioner ask them their favorite information sources.

One of your challenges as an analyst is filtering through all the noise from the many available information sources to extract the key information signals that can help you make sound investment decisions. The CMC blog post How to Read Financial News described an article by t

RW Baird Information Sessions - CMC Exclusive

Tuesday August 18th at 6:00 PM

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Hello All, 

This is a reminder that tomorrow (Tuesday, August 18th) at 6:00 PM CT Baird will be hosting a virtual recruiting info session for their 2021 equity research internships/full-time roles. This info session will be exclusive to CMC members. This a great opportunity for anyone who is interested in learning more about Baird's equity research programs as well as a great opportunity to network with equity research analysts at the firm. 

IMPORTANT: In the Zoom call we will be splitting everyone up by grade level into three separate breakout rooms (one for sophomores, juniors, and seniors) in order to focus on the program(s) most relevant to each group. If you plan on attending, you must fill out and submit this Google Form so that we can place you in the appropriate breakout room once in the Zoom call. Make sure to come prepared with questions for the analysts as there will be a Q&A session in each breakout room. 

Here are the links to the job postings for the Baird Equity Research Internship and Full Time Role

Here is the link and passcode to join the Zoom call:
https://us02web.zoom.us/j/88518189603?pwd=dUNQQllEd09BeHpMQndVOXlrRGVRdz09
Meeting ID: 885 1818 9603
Passcode: 758433

CMC Executive Board

CFA Society Madison Scholarship Notice

Deadline November 1st

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CFA Society Madison is offering three scholarships for the December 2020 or February 2021 CFA exams.  Each scholarship is for $800 to help candidates defer the cost of pursuing the CFA designation.  Applications must fulfill all CFA candidate requirements to be eligible for a scholarship.  Scholarships are not available to CFA Society Madison officers, directors, employees or their immediate families. 

  • Candidates already receiving Access or Awareness scholarships for the June 2020 or December 2020 are not eligible for the CFA Society Madison scholarship.
  • Candidates are ineligible if their current employer provides any financial assistance for participation in the CFA Program.
  • Candidates must sit for the December 2020 exam or the February 2021 exam in order to receive the scholarship payment.

If you are interested in applying - 

  • Complete the Society Scholarship Application  and return by November 1, 2020.  (Recipients will be notified by late November 2020)

Mail the application to:

            CFA Society Madison

            1702 Ashlawn Lane

            Waunakee, WI 53597

            or scan to cfa@cfamadison.org

 

Any questions can be directed to Xuezheng Wu, CFA at xwu@madisoncollege.edu.

Virtual PI Internship Information Day - Seeking Candidates

Northwestern Mutual Capital

Dan Pickett 0 307 Article rating: No rating

Hello all -

Northwestern Mutual Capital is going to hold its annual NM Public Investments Internship Information/Career Day virtually this year, on August 14. The format will be 30 minute panels with investment professionals from across our firm, starting at 8:30 or 9 (intended agenda below). As always, seeking all candidates but trying to be particularly thoughtful about identifying candidates who may not have investment management exposure within their personal networks. Candidates can email me and we will get them on the list.

Thanks and hope this finds you well!

Jason Schultz (jasonschultz@northwesternmutual.com)

 

Intended Agenda - final to be sent with RSVPs

30 Minutes – Introduction to Public Investments and Fixed Income

30 Minutes – Portfolio Management Panel

30 Minutes – Investment Research Panel

30 Minutes – Trading Panel

30 Minutes – Recruiter and Intern Q&A  

The Top Five Accounting Mistakes Analysts Make

Considerations as you prep for Wall Street Prep

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Just in case you don't appreciate the importance of financial modeling to investment analysts, we are posting another article on the heels of the invitation to participate in the Wall Street Prep modeling seminar. A solid understanding of accounting, the ability to read and interpret financial statements, and project financial statements forward reflecting your own forecasts are key skills all good analysts have. The Wall Street Prep seminar is an excellent opportunity to develop those skills and the attached article offers some things to consider. Here are some quick comments on the mistakes identified.

Mistake 1 - using generalized accounting statements. Those of you attending our training sessions should recognize this is a point we make about the standardized Factset financial statements versus the "as-reported" financial statements available on that service (and all others like Bloomberg of CapIQ).

Mistake 2 - not understanding the reflexivity/interactivity of the three major financial statements. This is something we discuss (at a basic level) in the 1st Accounting 101 training session. In more advanced discussions we consider how companies finance growth if it requires working capital they don't have (e.g. by issuing equity of debt).

Mistake 3 - not creating apples-to-apples comparisons in time. Also discussed in the accounting session - not usually a big deal, but important to understand.

Mistake 4- not adjusting statements for distortions. More important and critical to conisder, e.g. recognizing acquisitions and divestitures will distort growth calculations, or that accounting differences like using stock-based comp or not can affect different company "adjusted" financials.

Mistake 5 - not reading the footnotes. This is a big one. The footnotes provide excellent information regarding revenue recognition policies and other practices that affect the financials and how you interpret them.

If you are really interested in accounting (and if you want to be an investment analyst you should be :)), there are more financial modeling articles in the Research Readings Folder on the CMC website - here.

 

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