Reflection On The Investment Process

Superior Essays
1. Introduction

The practical investing course, was very insightful elective and moreover was highly practical. It was very hard to select just three topics to reflect in this report because every section on the course, I learned new concepts, how to apply them and have a knowledge directly from practitioners rather than purely academics; that is exactly what I expect from an MBA course. I am going to address in this assignment my learnings on the investment process, asset allocation and behaviouralising finance as follow in the next section.
2. Reflections

2.1 Investment Process

Before the practical investing course my knowledge in how to select stocks to invest where according to the companies that I felt more familiar with, and by the public information where attractive to invest. This decisions were driven from a recommendation of a friend or general advertisement but not through with a formal process behind, just for “feeling”.

Consequently, It was very insightful to learn the investment process, where first you do an analysis of alternative economies and securities markets that the aim is to decide the investment allocation starting with the countries and within those countries which asset, such as, bonds, stocks, and cash1. Second, do an analysis of industries, where the aim is based on the market
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When I was hearing Peter Brook talking about this innovative concept, I remembered to experience a similar feeling when I was trading with currencies (LATAM) in my previous work; the company policy was to buy every everyday a fixed amount and at the end to have an average of the exchange rate. Now, I link that practice with the smoothing concept in order to reduce the gap that generates

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