Today's young generations are navigating a challenging financial landscape characterized by rising living costs, student debt and housing market barriers. These challenges call for an answer to the question: how can my money work for me? This minor will teach young people how to strategically and methodically save and invest, to build a foundation for long-term financial security. The investing minor will teach financial literacy and proactive money management from scratch. No prior financial knowledge required. The Investing minor will focus on the principles of value investing; a long-term, stable and reliable method of money management. It will teach skills such as financial analysis, valuation, and portfolio management. Students will learn to critically evaluate a company’s financial health, understand intrinsic value, select high-quality businesses and apply value investing principles to construct a diversified portfolio.

These competencies are essential not only for those aspiring to work in finance, but also for those interesting in getting the best out of their savings. Here are the skills students will be expected to acquire through the minor:

1. Introduction to investing o Skill:

Students will learn to systematically analyze companies using financial statements, key ratios, and historical data. This includes interpreting profitability, liquidity, and solvency metrics to assess a firm’s financial stability and growth potential. o Importance: Students will gain the ability to look at their everyday life, and recognize where money streams towards them, and where it leaks away. They will learn to create systems to -in time- reliably expand the money flow towards them, and decrease the flows away from them. For students striving for careers in finance, the ability to evaluate complex financial data accurately is critical. Whether working in corporate finance, investment banking, or financial consulting, professionals must provide insights that guide sound investment decisions and support clients' financial goals.

2. Valuation Proficiency o Skill:

Through various valuation methods (Discounted Cash Flow, Dividend Discount Model, and Multiples), students will gain expertise in determining a company’s intrinsic value and identifying over- and underpriced assets. o Importance: Valuation is important to the individual student, because in order to create a financial margin of safety, they need to only buy assets when they are undervalued. This minor teaches them to recognize this. Valuation is a core function in investment and asset management roles. Proficiency in valuation allows professionals to uncover undervalued investment opportunities, make informed buy/sell decisions, and effectively manage risk and return in client portfolios.

3. Portfolio Management o Skill:

Students will learn how to construct diversified portfolios, apply capital allocation strategies, and mitigate risks. They will understand diversification’s role in reducing unsystematic risk and use tools for assessing portfolio volatility. o Importance: Effective portfolio management is crucial for careers in wealth management, asset management, and financial planning (at work and during your life time). By mastering portfolio construction and risk analysis, students can help themselves, clients or employers achieve stable returns while managing exposure to market volatility.

4. Strategic Decision-Making and Scenario Planning o Skill:

Scenario and sensitivity analysis teaches students to anticipate different financial outcomes based on varying market conditions and assumptions. This skill involves testing the impact of changes in interest rates, market trends, and economic factors on company valuations and portfolio performance. o Importance: Strategic decision-making is essential for navigating market uncertainties. By preparing for diverse scenarios, future finance professionals can offer resilient investment strategies that adapt to changing economic conditions, a highly valued skill in investment and corporate finance roles.

5. Ethics, Sustainability and Long-Term Value Perspective o Skill:

A well-rounded value investor must possess a range of technical, analytical, and ethical skills. Incorporating Environmental, Social, and Governance (ESG) metrics into the value investing process adds a layer of complexity, requiring proficiency in evaluating and quantifying non-financial aspects of businesses while adhering to the core principles of identifying undervalued companies. o Importance: We would like all our students to make financial decisions that are morally sound, sustainable and focused on the long-term. Investing through this lens also enhances a professional’s credibility and aligns with the growing focus on responsible investing practices that contribute to sustainable economic development.

The minor is taught in English; a Cambridge B2 level of English, or an IELTS 5.5 level of English proficiency is required, or equivalent.

Required Reading:

- On Valuation – Aswath Damodaran

- How to Make Money in Stock – William K. O’Neil

- The Joys of Compounding: The Passionate Pursuit of Lifelong Learning – Gautam Baid

Recommended Reading:

- The intelligent investor – Benjamin Graham

- Investopedia.com - Fidelity.com - Corporate fi

Teaching Methods: Workshops, lectures, case studies, guest lectures. Investment room: a room where people from the minor find each other (and/or a lecturer) to dive into the valuations and investment cases.

Study Load:

o Teaching Hours: 9 per week

o Self-study: 19 hours per week

o Guided time in the investment room: 10 hours per week

The assessment for the Investing minor is structured in three comprehensive parts, designed to evaluate both individual analysis skills and group-based strategic planning. Each component focuses on essential aspects of value investing, valuation, and portfolio management. We will treat the students like junior investment analysts, who individually and as a team deliver investment analyses to their supervisor.

1. Group advice: Company Selection Through Value Investing Principles

o Description: Students show, as a team, that they know how to sift through lists of companies to find companies with strong investment potential.

o Weight: 33% of final grade

2. Individual Valuation Report: Valuation and Investment Decision

o Description: Each student will prepare an in-depth valuation report of one company, covering multiple valuation approaches, such as Discounted Cash Flow (DCF), Dividend Discount Model (DDM), and Multiple valuation (e.g., P/E ratio, EV/EBITDA). The report should conclude with a final investment recommendation based on an analysis of valuation results. The report should also evaluate the student’s own investment(s) from the perspective of company selection and valuation.

o Weight: 34% of final grade

3. Group advice and Simulation:

o Description: Building on the individual valuation reports, this group assignment requires students to propose a portfolio of selected investments. The report should address risk allocation, expected diversification benefits, and projected returns/risk metrics. The group will also execute their proposed investment strategy on a trading simulation platform, monitoring performance in real-time and refining decisions based on market changes.

o Weight: 33% of final grade