Professor Arnold’s Seminars for Schroders Graduate Programme
Please note that the contents and order of delivery are modified from one year to the next.
However, the following gives a rough idea of what is covered and gives examples of slides
used in the presentation.
There are five main topic areas, which take 19 full days to go through.
Learning from the masters:


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
Day 1. Benjamin Graham
Day 2. Philip Fisher and Peter Lynch
Day 3. Warren Buffett and Charles Munger
Day 4. John Templeton and George Soros
Learning from the masters:
Benjamin Graham
Seminar 1
The father of modern security analysis
Here is one of the slides:
Key features of a sound investment operation
Thorough
Financial
Analysis
Safety of
Principal
Satisfactory
Return
Sound
Investment
Seminar 2
Graham’s three forms of value investing
Here is one of the slides:
Three investment approaches
Current Asset
Value Investing
Defensive or
Passive Investing
• Current asset value
of company
• Intrinsic value
• High diversification
• Quantitative value
only
• Large companies,
well-financed, with
continuous dividend
payments
• Moderate p/e ratio
• Some
diversification
Seminar 3 Empirical evidence.
Doddsville
Aggressive or
Enterprising
Investing
• Quantitative factors
• Qualitative value of
company's future
earnings
• Intense scrutiny of
a few firms
• Low diversification
The superinvestors of Graham-and-
Here is one of the slides:
Xiao and Arnold, 2008
Risk
Afternoon
Group exercise:
Use Benjamin Graham’s principles to evaluate some British companies
3.30 p.m. – 5.00 p.m. group presentations to peers.
Approximately 10 minutes for presentation, followed by 5 minutes of
questions and discussions
Philip Fisher and Peter Lynch
Seminar 1 Philip Fisher’s Bonanza Investing
Here is one of the slides:
Key elements of the philosophy
Seminar 2 Philip Fisher Part 2. Peter Lynch Part 1
Here is one of the slides:
Selling
‘If the job had been correctly done when a
common stock is purchased, the time to sell it
is - almost never.’
• Error made in the original assessment of the
company
• Developments over time causes companies to
no longer qualify as a Fisher growth stock
• A better prospect on offer
Seminar 3 Peter Lynch
Here is one of the slides:
Niche company investing
Small aggressively-run companies offering growth of at
least 20% per year
Dunkin’ Donuts
Stop and Shop
Boring or unpleasant industries
Niche Company
Low Price
Financial
Strength
OwnerOriented
Management
A Strong
Economic
Franchise
Afternoon
Group exercise
Analyse UK companies making use of either Fisher’s or Lynch’s principles.
3.30 p.m. – 5.00 p.m. Five group presentations to peers.
Approximately 10 minutes for presentation, followed by 5 minutes of questions and
discussions
Buffett and Munger
Seminar 1
The evolution of an investment philosophy
Here is one of the slides:
Annual return performance of the Buffett Partnership Ltd.
Overall results from
Dow
%
Partnership results
%
1957
- 8.4
+ 10.4
Limited Partners'
results (after fees to
Buffett)
%
+ 9.3
1958
+ 38.5
+ 40.9
+ 32.2
1959
+ 20.0
+ 25.9
+ 20.9
1960
- 6.2
+ 22.8
+ 18.6
1961
+ 22.4
+ 45.9
+ 35.9
1962
- 7.6
+ 13.9
+ 11.9
1963
+ 20.6
+ 38.7
+ 30.5
1964
+ 18.7
+ 27.8
+ 22.3
1965
+ 14.2
+ 47.2
+ 36.9
1966
- 15.6
+ 20.4
+ 16.8
1967
+ 19.0
+ 35.9
+ 28.4
1968
+ 7.7
+ 58.8
+ 45.6
Compound '57-'68
+ 185.7
+ 2610.6
+ 1403.5
Year
Seminar 2
Warren Buffett and Charles Munger: Economic franchise
and managerial quality
Here is one of the slides:
Circle of competence
• On no account should any interest be taken in
company outside your circle of competence
• ‘Profit from always remembering the obvious
than from grasping the esoteric’
• Businesses that are relatively simple and
stable in character
• Familiarity does not breed contempt, but
rather confidence and the ability to create
profits
Seminar 3
Warren Buffett and Charles Munger: What an investor
should not do + some aphorisms to learn
Here is one of the slides:
Distractions
Crystal ball gazing don’ts
Investors explicitly advising us to avoid doing the following:
Lynch
Forecast
the economy
X
Engage in
market timing
X
Neff
X
Graham Fisher Buffett
& Munger
X
X
X
X
X
X
Afternoon
Analyse two companies to judge whether you think Buffett and Munger would describe
them as ‘Inevitables’
3.30 p.m. – 5.00 p.m. Five group presentations to peers.
Approximately 10 minutes for presentation, followed by 5 minutes of questions and
discussions
Soros and Templeton
Seminar 1
Soros: The development of a philosophy
Here is one of the slides:
Seminar 2
investing
Soros: Reflexivity case studies . Templeton: Global value
Here is one of the slides:
THE BOOM/BUST MODEL
Stage 1 – no trend recognition
Stage 2 – recognizing the trend and reinforcement
Stage 3 - testing
Stage 4 – period of acceleration
Stage 5 – unsustainability ‘the moment of truth’.
Stage 6 – twilight period
Stage 7 – tipping point
Stage 8 – catastrophic downward acceleration
Seminar 3
Templeton: Key elements
Here is one of the slides:
Afternoon
Group exercise
Analyse a company making use of Templeton’s principles.
3.30 p.m. – 5.00 p.m. Five group presentations to peers.
Approximately 10 minutes for presentation, followed by 5 minutes of questions and
discussions