GTIW Flashcards
Why do you want to join WITG Investment Team?
I did development team last semester, and it was fun. I realized that WITG is the fastest way for me to get immersed in finance and investing which is hard to do alone.
1 because of lack of guidance and 2 because if I am always working towards a project or pitch, it will motivate me to learn more and faster. And most importantly, I can get feedback.
Also, I really want to do case competitions for the fun and competition.
WITG does all these things in a way that no other club does.
Why industrials?
Because I am new to some of the technical aspects, Industrials is a great way for me to study companies I am a little more familiar with and explore (it’s not just construction, aerospace, diversified machinery, metals right?). I actually really like technology stocks, but I am hesitant to sector myself because I want a good grip on a lot of different things.
Questions?
How many people are on the team and how do they interact?
What are some things industrials does in a week?
What can you contribute?
(1) I am a super hard worker. I usually do all tasks to the best of my ability, and I do well in teams. Especially here where everyone is able to contribute.
(2) I am very interested in investing, so I will put more effort into everything.
(3) I think pretty uniquely - basically detailed which is pretty important. A friend was saying that at BAM they teach little things are so important in financial statements - catching those is critical.
What makes a good business? In your opinion, what are the three most
important characteristics that define a good business? Why?
A good business is one that has sustainable growth, and that includes not only a business plan for growth, but also competent leadership, and defined values.
Going over the pitch
Michaels Companies
I decided to do this one because in high school, and now, I do a lot of fine arts. I was the customer - like I know when all the discounts are and coupons and when things went on sale. I can visibly see the arts & crafts retail industry decrease. They have less customers, and instead of crafts, teens go to video games. I think their market share in arts & crafts is increasing, but this is not enough to offset the decrease of the entire sector.
The thing I started to analyze was their new efforts to capture Toys R Us share. They are doing this with a MichaelsKids platform targeting kids. This is a great idea. Kids are their most profitable customer looking forward and they are hard to steal. Video games are designed for teens and older kids. Customers like schools and professional artists are stolen by bulk supplies companies.
I found some other things: The seasonal thing is not a surprise, but what is interesting is how they make most revenue by opening more stores instead of improving their products or operations. Seems unsustainble by nature due to decreasing marginal gain per store. Also that the idea of “discretionary item.” Supposedly when markets are running well, they should run well, but they are not.
My DCF is weird - I think I went wrong on some assumptions. It is really hard to find values in financial statements. But MIK is already below IPO price.
Why do you want to join exec team?
I am looking for a way to get involved and be able to help. I liked development team last year, and I would like to lend what I have learned to doing things and running events like that.
I especially like doing stock pitch events. I want to help with those probably give me some insight into events planning.
Do you have any ideas for things to do?
It would be fun to do a marketing campaign, do some branding and work with WITG
Have you been to WITG events?
I went to some info sessions and speaker events (AQR) it has been great for learning about companies.
What skills could you add?
I did events in Wharton Women: ran their cornerstone event the annual dinner which is a large event with a career fair, a dinner, and a speaker. Small things like flowers, venue, catering become important. and communication with recruiters and comapnies is important as well. Also working with several committees is a lot of fun
Questions
What would the executive team do in a week?
look at your app!
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