How to Prepare
The team uses a variety of valuation methods, including intrinsic and relative valuation. With the discounted cash flow model, commonly used in value investing, the team arrives at a valuation by projecting a company's future cash flows and discounting them by the weighted average cost of capital. The team requires a strong margin of safety on all investments it considers. Although DCF is a technical model, it is only as good as the assumptions made, which is why it is critical to have a deep understanding of the company and the market in which it competes.
We recommend to all interested applicants to keep up to date with major news sources so that they have a solid fundamental understanding of why certain market trends occur and how specific events have implications on different perspectives on different sectors. These include but are not limited to: The Wall Street Journal, The Economist, Financial Times, CNN, Morning Brew...etc.
Margin of Safety, Seth Karman
Intelligent Investor, Ben Graham
Security Analysis, Graham and Dodd Capital Ideas, Peter Bernstein
Capital Ideas Evolving, Peter Bernstein
Valuation, McKinsey & Associates
Fooled By Randomness, Nassim Taleb
The Black Swan, Nassim Taleb