Value Investing for beginners – A key ingredient of “PGDM in Finance” Syllabus

Value Investing for beginners – A key ingredient of “PGDM in Finance” Syllabus

“Someone’s sitting in the shade today because someone planted a tree a long time ago”. 

-Warren Buffett

Big bucks are not a prerequisite to becoming a successful investor. One can start with a small amount of their savings. Financial goals should be well set before entering into the market, a holistic PGDM in Finance course should be able to teach this to its students. Remember, investment in equity is the only way to get inflation-adjusted returns. Risk is higher, but with proper training and understanding of market and companies’ one can add value to their hard-earned money. The curriculum of PGDM in Finance should be such that’s students understand this philosophy wholeheartedly.

We, at Indira School of Business Studies, one of the top management institutes in Pune, constantly strive to orient students pursuing PGDM in Finance to grasp the nuances of investing techniques such as value investing. The key differentiator of our PGDM in Finance course is that right from taking admission, students of PGDM in Finance are exposed to workshops, case studies, and skill-building activities such as simulation games, live projects, industry visits & exposures. At ISBS blended learning is provided to students of PGDM in Finance.

The secret of investing is to figure out the true value of something and then buy at a lower value and sell at a higher value. Now, the question is how to find the value of an investment? Remember, there are no short cuts. Equity investment is investing in the business of the company. The primary task of the curriculum of PGDM in Finance should be to give the knowledge to students to understand the business well before investing. A company’s future value depends on its profitability and growth. One needs to see the trend of earnings, revenues, earnings per share, debt content, and interest payment capacity, etc. to value a company. Comparison of the performance of a company with other companies in the same sector is a must understand how the leader is performing and identify the benchmark for that sector, students of PGDM in Finance should be well equipped to make this comparison. Following a company well before investing is a must understand the roots of the company, a student of PGDM in Finance must understand this well. A good investment is not entirely dependent on the balance sheet; it’s also about the management team. Good management is a must for a company to grow. One needs to look at the promoters and managers; their trustworthiness and background data. A PGDM in Finance students must be aware of all these aspects.

A PGDM in Finance student first needs to find out the total amount to be invested in the stock market or portion of their savings to be invested in the stock market. Diversification of risk is a very important aspect of investing in the stock market. A PGDM in Finance students must understand that one should never put all the savings in one company. Ensure that the portfolio contains companies from different sectors. Five percent of the total amount to be invested in equity should be put in one company’s shares. This is not enough, every time one invests in a company one should be able to answer oneself the reason for investing in that company. If one does not have this answer then one should not invest in that company.

A PGDM in Finance students must understand that for beginners, it is better to opt for long term investment in fundamentally sound companies. Set buy and sell targets for a particular share and keep revising the same every quarter depending on the company’s performance and current news. Once the sell target or revised sell target is achieved then exit, don’t get greedy based on the suggestions received from others. Their understanding of the company and yours may be completely different or it may be an opinion based on technical analysis. Remember to Invest in fundamentals, not on charts or rumors. A PGDM in Finance student should remember the words of Li Lu as mentioned below:

Remember it’s your hard-earned money so no shortcuts. It’s time, not timing, that makes money in the market. We don’t have to be smarter to invest in the stock market rather we have to be more disciplined to grow our savings and achieve financial freedom.

At Indira School of Business Studies, one of the top management institutes in Pune, students are taught value investing in our PGDM course through simulation activities and workshops so that they can start saving and investing at a young age; enter the market at right time instead of timing the market.

We are committed to empowering students for a bright career through our AICTE approved PGDM course.

To know more about our PGDM course, PGDM admission process and eligibility criteria, please log on to our website: https://indiraisbs.ac.in/pgdm-admission/

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