For the next two meetings, the club did something a little bit more fun -industry analysis! Since buying stocks actually means that we are buying a percentage of ownership in the company, we better make sure we know the company well enough! For the first meeting, we went over some important tools for industry analysis: SWOT analysis and Porter’s five forces. SWOT are acronyms for strengths, weaknesses, opportunities, and threats. The five forces are threats of new competition, threats of substitute products, bargaining power of customers, bargaining power of suppliers, and strength of competition. We applied the knowledge to some examples together in order to obtain a better understanding of the topic. And here comes the fun part, each member will get to choose a company or two of their interests, conduct an analysis, and share it with the group. The analyses will be used to in our stock-picking process in the future. Here is an example of SWOT analysis from Prim B.
1 Comment
Jon Calos
4/3/2017 10:29:20 am
I am pleased that you find SWOT analysis fun. Not everyone can say this! I am looking forward to learning what your club members come up with!
Reply
Leave a Reply. |
AuthorMy name is Nat from Emma Willard School. I am exploring and learning about the stock market! Archives
May 2017
Categories |