Executive Program in Investment in Value and Behavioral Finance

General

Read more about this program on the school's website

Program Description

What is the Executive Program in Investment in Value and Behavioral Finance?

The program was born from a collaboration between the “Value School”, the “Institute of Neuroeconomics and Investment in Value” and the Universidad Pontificia Comillas, specifically through ICADE business school . Its objective is to achieve an understanding on the part of the student of all the phases of a process of investment in value or “value investing”. This ranges from detecting possible investment ideas to making the final decision. The approach will be eminently practical and will include recognized equity managers in its faculty who apply this method of work in several of the most important national managers.

Behavioral Economics and Neuroscience Module

As a differential element of the course we will also have a module on Behavioral Economics and Neuroscience applied to investments, in order to understand how our brain function affects our investment decisions and thus avoid negative biases that could destroy value.

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What makes us different

1 Specialization

Thorough knowledge of the value investment process or “value investing”.

2 Methodology

Working method followed by some of the most successful investors (Buffett, Fisher, Lynch or Klarman).

3 Neuroeconomics Module

Understanding how brain function affects investment decisions.

4 Cloister

Faculty made up of expert managers and specialists in Neuroeconomics.

5 Integral Training

Prior knowledge of the basis of financial markets (the Austrian School of economics and its application to a value investment process).

6 Practical Approach

Practical cases in which each manager explains the characteristics and operation of their investment process.

Admission process

Apply for admission.

The process begins on-line, once the candidate has verified that he meets the eligibility requirements. Likewise, you must attach the documentation detailed in the "Requirements and Documentation" section.

Conduct the personal interview.

The candidate will conduct a personal interview with those responsible for the program.

Communication and legal requirements for university access

The candidate will be informed about the results of the admission within a period of approximately 10 days from the completion of the previous steps.

Formalize enrollment

Once admitted, the student must formalize the enrollment. The process begins via the web, but it is necessary to deliver the registration form and additional documentation to the General Secretariat within the deadlines expressly indicated to the candidate.

Term and place of delivery of the request.

The deadline for submitting applications ends on September 28, 2020.

The printed and signed application must be delivered personally to the University's Academic Management and Titles Service, C / Alberto Aguilera 23, 28015, Madrid; It can also be sent by certified mail to the address indicated above.

It is recommended not to send originals of degrees and / or academic certificates by post, but certified photocopies of them.

In any case, compliance with the legal requirements for access to studies must be accredited.

Important dates

Submission of applications: As of November 22, 2019.

Course duration: January 15, 2021 - end of June 2021.

Hours: Friday from 5:30 p.m. to 9:30 p.m. and Saturdays from 10:00 a.m. to 2:00 p.m.

The course takes place over five months. The face-to-face sessions will have a frequency such as to allow students to combine this training with dedication to work.

Requirements

For admission to the program, the following merit evaluation criteria will be taken into account:

  • Professional experience of at least 2/3 years in the field of business management or finance.
  • The academic record and work experience.
  • English level (mainly comprehension and reading).
  • Knowledge of Microsoft Office (primarily Excel and PowerPoint.
  • Motivation letter.
  • Personal interview.

Documentation

Together with the duly completed application form, the following documents must be submitted:

  • Photocopy of DNI or Passport.
  • Curriculum vitae.
  • Certificate of knowledge of the English language.
  • Motivation letter.

Financial information and aid

  • The total cost of the course is € 3,950 *.
  • 10% discount to Alumni.
  • 10% discount on all students, for 3 or more students from the same company.

Curriculum

Course structure

Economic Foundations: Austrian School of Economics (12 hours)

The objective of the training block dedicated to Economics is to provide students with basic notions of economics that serve as a tool to correctly understand financial markets, as well as the necessary knowledge for their application to investment in equities. The block is composed of a first part, of an introductory nature, whose objective is to initiate the student in the basic knowledge of economics from the perspective of the general doctrine that is taught in universities. The second part focuses on the Austrian School of Economics and its application for a better understanding of market processes, monetary economics, business cycles, analysis of interventionism and investment.

  • Historical introduction to the EAE: EAE vs General Doctrine.
  • Human Action (Mises). Defining elements. Means and Ends.
  • The Business Function.
  • The Law of Marginal Utility, Law of the Division of Knowledge and Labor and Law of Price Determination.
  • The Economic Calculation. Theory of Money.
  • Cost Law.
  • Socialism as a theoretical error.
  • Theory of interest. Time preference.
  • The Austrian Capital Theory.
  • The Austrian Theory of the Business Cycle.
  • Historical examples. The real estate crisis in Spain. The crisis of the 1930s in the US.
  • Possible solutions. Proposal to reform the banking system.

Behavioral Economics and Neuroeconomics (20 hours)

  • Introduction to Neuroeconomics and Behavioral Economics: neurofinance.
  • Brain mechanisms used in financial decision making.
  • Euphoria and panic: business cycles.
  • Brain reward and loss aversion.
  • Herd effect and other market trends.
  • Risk aversion and overreactions to the news.

Introduction to the value philosophy (12 hours)

  • Introduction: active vs passive management.
  • Theoretical approaches in the management of Variable Income.
  • Real approach: fundamental management vs non-fundamental management.
  • History and evolution of investment in value.
  • Practical application: what we look for in a company.
  • Competitive advantages.
  • Value traps: signals to detect them and how to avoid them.
  • Standardization in financial statements.
  • Practical examples.

Theoretical foundations: financial statement analysis and modeling in Excel (12 hours)

  • Analysis of Financial Statements (4 hours)
  • Modeling Fundamentals in Excel (8 hours)

Theoretical foundations: business valuation methods (8 hours)

  • Multiples: valuation by multiples of balance sheet, profit and loss and cash flow: 1 session (4 hours)
  • DCF: cash flow discount valuation: 1 session (4 hours)

Sector Analysis (16 hours)

We will dedicate 4 sessions to studying the peculiarities of some sectors and their analysis. Specifically to the financial, energy, auto, real estate, utilities and technology sectors.

Practical examples (40 hours)

Consisting of 10 sessions of 4 hours each, in which a renowned equity manager will make a brief introduction explaining his methodology and personal approach when applying value management to then develop one or more practical valuation cases and investment that he considers of special interest for students to understand and assimilate his method.

These practical classes will have an open format, in which the manager will share and discuss with the students the points of interest in their investment thesis, fostering a debate in which the students can understand "from within" what the process of taking decisions of each manager, what key points it considers when looking for investment ideas, and how it handles and interprets market information.

Student investment thesis presentation (12 hours)

The grade of the course will be determined by the presentation of an investment idea by each student in front of their classmates and 2 evaluating teachers, following the criteria and methodology learned throughout the course.

Last updated Oct 2020

About the School

ICADE Business School, as an integral part of the Faculty of Economics and Business Administration at Comillas Pontifical University, benefits from a long history of training business professionals.

ICADE Business School, as an integral part of the Faculty of Economics and Business Administration at Comillas Pontifical University, benefits from a long history of training business professionals. Read less