Thursday, July 12, 2007

My Life of Finance

In light of me being allegedly accused (or rightfully concluded) as being a bimbo, here is a post that is much less bimbotic. For those who do not know my current situation, here's an update. I'm currently working in a venture capital company working for a german boss. My main job scope includes writing reports, analyzing stocks / companies, analyzing economies for VC investments as well as MISC stuff. Before i continue with my post, here's a disclaimer: i will post random pictures (probably finance-related ones) within this post. This is to simulate how Investment Bankers try to package something totally useless (like my post) and make it look damn nice and pro, even when its sometimes unrelated (for real life example, check out how China International Sports market its IPO).

The job has spurred my interest in Finance. Although I have constantly been interested in finance, i guess i'm not where near people who have been constantly IN CONTACT. It has always been an interest but i've never bothered putting in effort to try to understand the market. It seems like the biggest takeaway from my internship is to spur my interest in analyzing companies and stocks. The thing that i like most about my job is that i can understand how people operate their businesses and how it translates to figures (i.e. profits). It is really amazing how simple businesses (like selling zips or mooncakes) can let a business earn tons of $$$ and go for an Initial Public Offering (IPO).

From my internship, i learnt another thing about myself. I am LAZY and UNMOTIVATED. I might have great potential but i'm freaking lazy. I will not take initiative to learn stuff (unless i'm SUPER interested in it). I've been interested in finance, so what is stopping me from creating models or reading annual reports everyday? NOTHING. It was only this internship that gave me the opportunity to go and read up on these stuff. In some sense, I only do well in things that are happening in the "current". Thinking about this made me a little more motivated. Maybe i SHOULD try to motivate myself to take steps to improve my learning. I guess it has slowly started. I'm currently learning technical analysis, reading annual reports and creating models for stock picking...



Ok... here's a summary of what i've done at my internship place (for the past 6 weeks):
1) Produced Analyst Reports for more than 10 companies (in sectors such as, construction, pharmaceuticals, healthcare, oil and gas,etc)
2) Translated a 17-page Mandate Letter (similar to a contract) between a stock exchange and a company going for listing FROM ENGLISH TO CHINESE.
3) Translated some other various stuff FROM ENGLISH TO CHINESE.
4) Wrote an investment feasibility report for Vietnam to discuss whether its feasible to invest in Vietnam (looked at economic issues, law and tax issues, political issues, etc)
5) Participated in a sales pitch by a taiwan company seeking secondary listing in HK stock exchange (I was from the buy side)
6) MISC stuff

Here's what i've learnt from the tasks above:
1) How to analyze a company
2) How to make decide on whether to invest in a company / stock
3) Technical terms in Chinese (e.g. liabilities = 债务)
4) How a good company does not require investment bankers (the sales pitch was dominated by the presentation by the CEO... the guy damn zai)
5) Law and technical issues when investing overseas
6) Technical analysis is useful because you want to buy low and sell high (within the small cycle) EVEN when there are strong fundamentals (i.e. you ride the small wave to enhance your earnings)

Here's the list of things i learnt during my "spare" time at work:
1) Created a stock selection model on excel to help me make investment decisions (still refining)
2) Learning Techinical Analysis
3) Fixed Income arbitrage (errr.... dun really understand the article still)

yupz... that's it... i'll leave you with a nice picture lah... the pictures above are total crap...


island-peak-1.jpg

(click on the pic to see a bigger pic)

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