The Little Book of Investing Like the Pros. Joshua Rosenbaum

Notes

      8  Chapter Two Step II: Identifying the Best Ideas Idea Review Framework Investment Thesis Business Overview Management Risks & Considerations Financials & Valuation Notes

      9  Chapter Three Step III: Business & Financial Due Diligence Business Due Diligence Financial Due Diligence Notes

      10  Chapter Four Step IV: Valuation & Catalysts Valuation Market and Intrinsic Valuation Buyout Valuation Catalysts Setting the Price Target Notes

      11  Chapter Five Step V: Investment Decision & Portfolio Management Making the Investment Decision Monitor the Investment Portfolio Construction Portfolio & Risk Management Notes

      12  Post-Mortem: Delphi Automotive Note

      13  Bibliography & Recommended Reading

      14  End User License Agreement

       List of Illustrations

      1 Chapter OneExhibit 1.1 Screening Output—Buyback Authorizations >5% of Market Cap & Market Cap >$1 bill...Exhibit 1.2 Bottom-Up ApproachExhibit 1.3 Top-Down ApproachExhibit 1.4 N. American Auto Production vs. Vehicles ScrappedExhibit 1.5 Cable vs. Telco Share of Broadband Subscriber Adds

      2 Chapter TwoExhibit 2.1 Idea Review FrameworkExhibit 2.2A Investment Write-up TemplateExhibit 2.2B Investment Write-up TemplateExhibit 2.3 Investment Thesis ComponentsExhibit 2.4 Business OverviewExhibit 2.5 Management AssessmentExhibit 2.6 Delphi TransformationExhibit 2.7 Financials & ValuationExhibit 2.8 Calculation of Market CapExhibit 2.9 Calculation of Enterprise ValueExhibit 2.10 Methods for Calculating Free Cash FlowExhibit 2.11 Leverage RatiosExhibit 2.12 Coverage RatiosExhibit 2.13 EV/EBITDAExhibit 2.14 P/EExhibit 2.15 P/FCF and FCF YieldExhibit 2.16 Selected Sector-Specific Valuation MultiplesExhibit 2.17 ROICExhibit 2.18 Dividend Yield

      3 Chapter ThreeExhibit 3.1 Business Due Diligence ChecklistExhibit 3.2 Global Light Vehicle VolumesExhibit 3.3 Fuel Economy Standards by GeographyExhibit 3.4 Installation Rates of Embedded TelematicsExhibit 3.5 Competitors by SegmentExhibit 3.6 Delphi Customer ListExhibit 3.7 Risk Sensitivity AnalysisExhibit 3.8 Financial Due Diligence ChecklistExhibit 3.9 Delphi Five-Year Historical Financial Summary – Income Statement and Free Cash ...Exhibit 3.10 Summary Model AssumptionsExhibit 3.11 Delphi Five-Year Projected Financial Summary – Income Statement and Free Cash F...Exhibit 3.12 Delphi Five-Year Projected Financial Summary – Balance Sheet Summary

      4 Chapter FourExhibit 4.1 ValuationExhibit 4.2 Benchmarking AnalysisExhibit 4.3 Comparable Companies Analysis—Trading Multiples Output PageExhibit 4.4 Delphi DCF Analysis Output PageExhibit 4.5 Exit Multiple MethodExhibit 4.6 Calculation of WACCExhibit 4.7 DCF Sensitivity AnalysisExhibit 4.8 Rockwood Sum-of-the-PartsExhibit 4.9 Liberty Media Net Asset ValueExhibit 4.10 Precedent Transactions Output PageExhibit 4.11 Synergies-Adjusted EV/EBITDA CalculationExhibit 4.12 How LBOs Generate ReturnsExhibit 4.13 Accretion / (Dilution) AnalysisExhibit 4.14 CatalystsExhibit 4.15 DLPH Annotated Share Price and Volume HistoryExhibit 4.16 Setting the Price Target

      5 Chapter FiveExhibit 5.1 Tracking Sheet—Potential IdeasExhibit 5.2 Quarterly Earnings Comparison TemplateExhibit 5.3 Annual Earnings Comparison TemplateExhibit 5.4 Balance Sheet Comparison TemplateExhibit 5.5 Portfolio Construction ConsiderationsExhibit 5.6 Portfolio Snapshot TemplateExhibit 5.7 Portfolio & Risk Management ToolsExhibit 5.8 $1 Invested in TWX vs. VIAB in 2016Exhibit 5.9 Illustrative Historical Performance – Fund vs. S&P 500

      6 Post-Mortem: Delphi AutomotiveExhibit PM.1 Delphi Share Price vs. Auto Suppliers & S&P 500Exhibit PM.2 Delphi Valuation Progression from IPO to Spin

      Guide

      1  Cover

      2  Table of Contents

      3  Foreword

      Pages

      1  ii

      2  iii

      3  iv

      4  v

      5  ix

      6  xi

      7  xii

      8  xiii

      9  xiv

      10  xv

      11  xvi

      12