Any one here apply CFA knowledge to invest in stocks?

Can we get the knowledge more quickly in this way??

Hahahaha … no


I do. I run multiple regressions on the operating earnings that have been translated using indirect currency rates adjusted for the third of porter’s five forces, taking into account the impact of fluctuations in the balance of payments…discounted at 10%.

Efficient Market Hypothesis

to some degree… but if you used it you would have gotten squashed in the markets recently. It doesn teach you crap about how to handle volatility

I prefer to use an efficient world portfolio. I’ve allocated $0.01 in every known security in the world to earn a sweet return. I still owe $10 million to transaction costs, but like most financial theorists, I ignore transaction costs.

urymoto1 Wrote: ------------------------------------------------------- > to some degree… > but if you used it you would have gotten squashed > in the markets recently. It doesn teach you crap > about how to handle volatility ofcourse yes, but the disclaimer is that “Efficient portfolio is the martket portfolio w. beta = 1, and that its highly diversified, meaning all the unsystematic risks are eliminated, but however it has undiversifiable crap called as systematic risk…” which leads to freeking volatile market everytime and they don’t talk abt handling that atall. so you can quote this everytime you get hurt though.

those are some funny quotes, but in fact, I do use these tools to perform analysis on INVESTMENTS… not speculation… i.e. anything I’m planning on buying and holding for the long term. Anything under a year is simply speculation and nothing in the curriculum… or anything else out there… TA, Oija boards, etc, is going to really give you any sustainable edge in the market on a day to day basis. I’m sure there are others out there that have or think they can make money consistently trading stocks, but for the vast vast majority of folks in the market can’t.

The CFA material is interesting, but when all is said and done, I invoke the herd mentality and go running with the bulls. Some will get gouged, but that’s inevitable with anything in life.

I’ve learned more from reading/studying on my own (Graham, Buffett, Fischer, Klarman, Greenblatt, etc.). I find most of the material in the program to be practically useless. It focuses too much on the short-term (and I also echo darkhelmet’s sentiments about investment vs. speculation). Too much speculative material and not enough substance. I watched Carl Icahn give a speech regarding his fund, the markets, etc. at an investor forum and he said (I can’t quote him exactly as my memory isn’t that good. Plus it was a while ago): “Beta? What’s that? I just don’t think I am smart enough to understand it. It just doesn’t make much sense to me. The price goes down and purchasing an ownership stake is more risky? I’m glad we have all of these educated young people out there. It just makes my job that much easier. Maybe I’m old fashioned but I just buy cheap companies. It’s actually quite simple.”

To certain extent on the valuation front. But the portfolio management theories stays in theory unless you are doing some quant trading.

I did…I lost everything, my house my wife, the car…even the poolboy left me. At least I still have the materials tho

Well. I found CFA material quite useful. I do not have much finance background before. I have been trading stocks mostly based on TA signals for a few years since graduating from school. To beat the market, one has to find creative ways to use this knowledge. But first you have to know this stuff cold then the creative ideas come after it. I have been incorporating more and more FA into my existing TA system and doing better and better. I agree that most of CFA materials are probably for short term investing. But that is exactly what I am interested in. Passed level 1 in Dec. Look forward to learning a lot more for level 2.