Applied Fundamental Investing

Busfin: 7235
SP 25
Course Description and Syllabus
Instructor: Steve Salopek, MBA
Lecture:
M-w (5071) -1:00 pm 2:30 pm GER 265

Office: Fisher Hall 310

Email: [email protected]
Office Hours:

Course Description:
The asset management industry has over $49 trillion dollars in the United States and more than $103
trillion globally in vehicles including mutual funds, hedge funds and ETF'S.

To find employment in this industry it is necessary to know some of the specialized skills that are
required, above and beyond those taught in more general Investments and Corporate Finance classes.
The goal of this class is to provide an introduction to the skills needed to enter the field of professional
money management.

The main goals of this course are:

1.) Develop an Investment Philosophy and an understanding of different investment
styles
2.) Develop an Investment Process and a framework for identifying attractive
investment ideas
3.) Developing your ability to research potential investment ideas utilizing a comprehensive
process and make investment recommendations and decisions.
4.) Improving your financial modeling skills
5.) Improving your understanding of current events in the financial markets

Course Structure:
The class format will be both lecture and project based. The class format will consist of class discussions,
and guest speakers and will be HIGHLY interactive. Throughout the course participants will learn the key
aspects of the investment research process from the perspective of an institutional investor.
 Concurrently, students are expected to identify an attractive investment opportunity in equities, either
long or short. The final project will be an in-depth written analysis and investment opinion on a stock of
your choosing. The combination of guidance from the instructor and the project -based approach where
you can apply the concepts taught in class will prepare you to have a good understanding of the
investment research process.

Text and Materials (Required):

CFA Institute Standards of Practice Handbook
The Psychology of Money, Morgan Housel CFA
The Wall Street Journal
Lecture notes will be on Carmen at least 24 hours in advance of class. I will also use Carmen to distribute
emails to the class and post supplemental information.

Course Schedule:
The following schedule is tentative and subject to change based on how the class progresses.

Date Topic Date

Week 1 Intro and Course Requirements

Ethics and Investment Analysis
Investment Philosophy
Week 2 Investment Styles- Growth/Value
Idea generation-Screening for Investment Ideas
Formulating and Economic Opinion
Week 3 Secular Change
Industry Analysis
Week 4 Company analysis
Ratio Analysis
Dupont Analysis
Building a financial model
Week 5 Financial Model
Valuation
Week 6 Financial Model
Valuation
Assessing risk
Week 7 Final Case due

Grading:
Attendance 15%

Book Reflection 15%

4 interim assignments 20%

Final Project 50%

Final Grade 100%

No extra credit offered. Grades will be determined at the end of the term. Any curve, if there is one, is set at that time.
GRADES WILL NOT BE CHANGED FOR ANY REASON EXCEPT FOR MATHEMATICAL ERRORS

There are 5 components that will determine your FINAL GRADE:

Attendance: Because this class is HIGHLY interactive and project based attendance is vital. If you will be
absent from class for an ACCEPTABLE reason it is your responsibility to let the instructor know
BEFOREHAND. Failure to notify or any unexcused absence from class will result in a 25 point deduction
from the attendance portion of your grade. More than 1 EXCUSED absence will also result in a deduction
from the attendance portion of your grade
Participation: There will be a significant focus during this class and discussion of current market events
and therefore it expected that you are both prepared for that discussion as well as willing to participate.
.
Book Reflection: You will be required to read “The Psychology of Money” by Morgan Housel. Prompts
for your written discussion will be provided during the second week of class.

Interim Assignments: There will be 4 interim assignments that will be handed in over the 7 week
period. These assignments are the building blocks to your final report. The assignments will be
discussed a week in advance and will be posted on Carmen.

Final Project: You will select a company for an in-depth analysis for investment in its equity security.
Your analysis is expected to be 10-20 pages in length and will include an economic outlook, identifying
and analyzing applicable secular themes, analysis of the company's current prospects and outlook and a
detailed financial model and valuation analysis.

Course Policies:

Absence from class: If you are going to be absent form class please notify the instructor via email
beforehand. [email protected]

Seating: Seats will not be assigned but after the first day of class please sit in the same seat and in the
vicinity of your partner for the final project. Name cards will be distributed the first day of class and
please bring them with you so that I may keep track of participation.
Late assignments: ANY assignment submitted after the due date will result in a substantially reduced
grade. NO EXCEPTIONS

Course materials: Any course materials used during the semester (ie lecture slides, quizzes, exams) are
for your personal use ONLY. Course materials are not to be posted (ie Course Hero, Chegg) or
distributed in any manner.
Use of Artificial Intelligence Tools

• The use of generative AI tools (such as ChatGPT, DALL-E, etc.) are not permitted in this class
UNLESS IT SPECIFICALLY AUTHORIZED FOR AN ASSIGNMENT. In instances where it is
authorized you are responsible for the information you submit based on an AI query (for
instance, that it does not violate intellectual property laws, or contain misinformation or
unethical content). Your use of AI tools must be properly documented and cited in order to stay
within university policies on academic integrity. (ie make it clear that content is AI generated)

Students with Disabilities:

The Office of Disability Services verifies students with specific disabilities and develops strategies to
meet the needs of those students. Students requiring accommodations based on identified disabilities
should contact me at the beginning of the semester to discuss his or her individual needs. All students
with a specific disability are encouraged to contact the Office of Disability Services to explore the
potential accommodations available to them.

Electronic Devices:
The absence of unnecessary distractions and interruptions is essential for a positive and effective
learning environment. Thus, students may not use ANY electronic device in class, unless explicitly
permitted by the instructor. All electronic devices must be turned off and put away prior to the start of
class. ANY USE OF A CELLPHONE DURING CLASS WILL RESULT IN A REDUCTION IN CLASS
PARTICIPATION GRADE. THERE WILL BE NO EXCEPTIONS TO THIS POLICY

Students who want to take electronic notes may do so but only if it is on a tablet device and that tablet
must remain on the flat table top for the entire class time. YOU MUST HAVE INSTRUCTOR APPROVAL
TO TAKE ELECTRONIC NOTES.

Academic Integrity:
All students enrolled in this course are responsible for abiding by the guidelines outlined in the
University’s Code of Student Conduct. According to University Rule 3335-31-02, all suspected cases of
academic misconduct will be reported to the Committee on Academic Misconduct.

Academic integrity is essential to maintaining an environment that fosters excellence in teaching,

research, and other educational and scholarly activities. Thus, The Ohio State University and the
Committee on Academic Misconduct (COAM) expect that all students have read and understand the
University’s Code of Student Conduct, and that all students will complete all academic and scholarly
assignments with fairness and honesty. Students must recognize that failure to follow the rules and
guidelines established in the University’s Code of Student Conduct and this syllabus may constitute
“Academic Misconduct.” The Ohio State University’s Code of Student Conduct (Section 3335-23-04)
defines academic misconduct as: “Any activity that tends to compromise the academic integrity of the
University, or subvert the educational process.” Examples of academic misconduct include (but are not
limited to) plagiarism, collusion (unauthorized collaboration), copying the work of another student, and
possession of unauthorized materials during an examination. Ignorance of the University’s Code of
Student Conduct is never considered an “excuse” for academic misconduct, so I recommend that you
review the Code of Student Conduct and, specifically, the sections dealing with academic misconduct .

If I suspect that a student has committed academic misconduct in this course, I am obligated by
University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM
determines that you have violated the University's Code of Student Conduct (i.e., committed
academic misconduct), the sanctions for the misconduct could include a failing grade in this
course and suspension or dismissal from the University. If you have any questions about the
above policy or what constitutes academic misconduct in this course, please contact me.
DIVERSITY
The Ohio State University affirms the importance and value of diversity of people and ideas.
We believe in creating equitable research opportunities for all students and to providing
programs and curricula that allow our students to understand critical societal challenges from
diverse perspectives and aspire to use research to promote sustainable solutions for all. We
are committed to maintaining an inclusive community that recognizes and values the inherent
worth and dignity of every person; fosters sensitivity, understanding, and mutual respect
among all members; and encourages each individual to strive to reach their own potential.
The Ohio State University does not discriminate on the basis of age, ancestry, color, disability,
gender identity or expression, genetic information, HIV/AIDS status, military status, national
origin, race, religion, sex, gender, sexual orientation, pregnancy, protected veteran status, or
any other bases under the law, in its activities, academic programs, admission, and
employment.

Disenrollment:
Fisher College University Rule 3335-8-33 provides that a student may be dis-enrolled after the third
instructional day of the quarter, the first Friday of the quarter, or the student’s second class session of
the course, whichever occurs first, if the student fails to attend the scheduled course without giving
prior notification to the instructor.