3/18/2018 0 Comments ExperienceSpring break was an incredibly productive week for me. In addition to catching up with all of the work that I had been rushing to complete due to my two weeks of travel in February, I was able to put in over 10 hours on my final product and gain some valuable experience by attending a meeting at the Dallas Petroleum Club during a mentor visit.
The progress that I have made on my final product was probably the most successful part of this week. Much of my time was spent on creating a new valuation model that I will be using in all of my valuations in of my final product. Previously, I had been using the model that Patrick had provided to me when I started at Venable. I decided to make my own valuation a bit more complicated and accurate than the one that I had been using. First, I modified the averaging system of earnings. Previously, two sets of three years in a ten-year period were averaged together, which required you to take an average of an average, compromising the accuracy of earnings growth. With my new valuation, I found the year over year (yoy) growth of earnings over ten years and averaged those percentages to come up with a final value. Next, I included worksheets for some things like return on invested capital (ROIC) so I personally could become more familiar with various accounting concepts and see my own work. The second valuable experience I gained was attending a meeting at the Dallas Petroleum Club. I was able to gain experience talking to people and learn about the environment at a multidisciplinary industry club. The guest speaker gave a presentation on the work that their company does, which was putting together large amounts of data to make different tasks like oil mapping easier. Although I did not understand all of the intricacies of what he was explaining, the system strongly reminded me of the Bloomberg Terminal, which provides access to almost every piece of investment information that any investor could want. This talk also stressed the importance of having comprehensive and quick data, which, in this new digital age of business, makes things more accessible and consequently more competitive. The new accessibility of data will be one of the things that this generation of investors will have to work with in order to effectively invest. Overall, this week was very successful and productive in giving me more experiences and time to work on my various projects, both in school and at Venable Royalty. I look forward to accomplishing more on this project and finding new investing opportunities.
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