@dollarstodonuts
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Up8
To continue with my same logic, I just realized that I didn’t apply depreciation to FCInv which would give me the following:
FCFE = 3.50 + 1.60 – 0.50 – 2.00 + (0.40)(2.00-1.60+0.50) = 2.96
Which I think might make sense. If the structure is 40% debt, then that means 60% is equity. So I should have applied that 40% to the depreciation as well. Which would be a long way to do @vincentt ‘s formula:
FCFE = NI – (1-DR)(FCInv – Depr + WCInv)
Up6Suits is the best! As much as I’d love to have Mike Ross’s photographic memory, I think I’d much rather prefer Harvey Specter’s confidence!
Up5Can I get some love for my man Jonathan Bone??
Andrew Holmes is awesome too. He heads up Windsor Week so if you’re willing to go out there you can meet him in person!
Up5@christine are you currently an equity analyst yourself?
Up5A strategy I’ve implemented this go-around is doing the section of a practice exam pertaining to the topic that I just revised. So for example, after completing all my notes/revision for Equity, I would test myself with the Equity section of a mock exam.
I’ve been doing that as I complete each section and by the end of it I’ll have written about 3 practice exams. Once I complete all sections, I’ll move on to doing whole practice exams.
Just an idea, but it was something I devised to give me practice exam exposure early on.
Up5In the Schweser videos, Andy Holmes gives you 3 bits of advice that he considers crucial to passing the exam:
1. Focus on FRA
2. Time management (e.g. reading questions before vignette as suggested by @christine and @sophie)
3. Practice, practice, practiceAnd from the analysis that 300 Hours put together, it seemed to me that doing well on FRA, Equity, Corporate Finance, and Derivatives will increase your chances of passing level II.
Up5@reena One of the great benefits of a long-term philosophy is the psychological aspect. It’s much less stressful when you’re not worried about every up-tick or down-tick in the market.
Fortunately for me, I work for a Registered Investment Advisor who recommends managers to be put into our client’s portfolios. As is such, I have a lot of access to a lot of great managers which is how I found my mentor.
But I’ve also reached out to managers by simply cold calling (or cold emailing if you will). You’d be surprised at how willing they are to share their experience and insight if you come across as eager to learn and not simply looking for a job.
Up5@Rhino6187 To add to your rationale behind investment decisions, legendary value investor, Marty Whitman, describes financial statements and accounting as the “language of investing.”
Up5@Sophie Not a problem at all! Thank you both so much for bearing with me as I try to understand this! I
I think I was partly getting tripped up on the algebra as well.
In the FCFE = NI – (1-DR)(FCInv-Dep) – (1-DR)(WCInv) formula, I couldn’t understand why they didn’t just break out the Depreciation term and multiply it by (1-DR) as well. I was fixating on why they chose to deduct it from FCInv when, algebraically, you could just as well apply it to WCInv or break it out on its own and multiply it by (1-DR).
@Vincentt @Sophie Thank you again you two!!!! You have no idea how much I appreciate your help 😀Up5Personally, I think the 2 live mock exams and the CFAI mock exam will be plenty. Given the format for level I, I think the most important tool is the Q-Bank.
Up5Thank you so much for the thoughtful post, @Lagarta ! This is great advice that I will definitely take to heart.
Up5I was granted the scholarship last year for my (failed) level II attempt this past June. It’s not strictly a needs-based scholarship but your financial need will be considered. Furthermore, you are ineligible if your current employer provides any financial assistance for taking the test.
Applications are sent to and reviewed by your local CFA Society and awards are based on several factors, including academic and professional accomplishments. It felt very much like a job application. I sent in my college transcripts, my resume, a couple essays, and a few letters of recommendation to my local society (CFA Los Angeles). Also, they definitely call your references to ask about you. I was actually in the room of my former boss when they left him a message asking about me hahaha.
I highly recommend applying if you can, because it felt like not many people applied so if you did you were pretty much a shoe-in. It doesn’t seem to be on many people’s radar and even those who find out don’t feel like putting in half a day’s work to apply for it. Let me know if there is anything else I can help with 🙂
Oh and here’s the link: http://www.cfainstitute.org/programs/cfaprogram/scholarships/Pages/index.aspx
Up5On test day, the first 50 people through the door get a free CFA Charter!
Up5Ahhhh, that is a brilliant way of explaining it. And just as a sanity check, purchases under LIFO and FIFO are the same correct?
Thanks so much, this is definitely going into my revision notes for this section.
Up5@microeconomist i second that! i found that i actually did better when i studied less! rather than burning myself out with 20-30 hour weeks, i would aim for 8-12 and found myself more productive, less stressed, and able to retain more.
and of of course, 95% of those 8-12 hours came from the weekend.
Up5@MockTurtle Wow, that is quite impressive, my friend. That actually gives me a great deal of optimism because as of right now, the only demands I have in my life right now are work and some dental work I need to address. Oh and a wedding in Japan during a week in February. While I’m definitely going to prioritize my level III studies, I’m confident that I’ll be able to devote part of my time to my website/modelling skills. Thank you for the vote of confidence!
Up5@Ankita I would suggest to just use the videos that you feel like you need extra help on, e.g. FRA. I know that’s hard to justify buying the whole set, but if you feel like you really need help on certain sections it might be worth the investment.
The 11th Hour guide is great for those last few weeks but assumes that you’re well versed in the material already.
If you’re looking for a good review, then the 11th Hour Guide is the way to go. If you’re searching for further clarification on a given subject, I would go with the videos.
