Post: #1

Hello fellow Redpillers,

This is my first post on this forum of like minded folks. I am a lawyer from India, who works in a corporate law firm. (I know lawyers are hated in these parts, but then I am not a family/divorce lawyer and despise them as much as any Red piller does.) Anyway, to get back on track, I am trying to get ahead in my firm and I see that while I do not lack in my core proficiency, what separates me from a partner is the knowledge of corporate finance and that they just seem to grasp the nuances of a corporate transaction in lesser time than I do. Could anybody suggest a good book/other resource to understand the nitty gritties of finance in simple language? I would want to understand basic cash flow modelling techniques and financial mathematics.

Post: #2

'Modern Monetary Mechanics' by the FED, no longer printed, but there is a PDF file in the web.
'Paul Wilmott Introduces Quantitative Finance' by Paul Wilmott.

Post: #3

Bit of an odd choice of a first post.

Search "Corporate Finance" on Ebay and you'll find dozens of Corporate Finance textbooks. Any will do as the concepts and the math involved are quite easy, and this is coming from someone who is not particularly good at math.

(06-20-2015 12:52 AM)Luvianka Wrote:  'Modern Monetary Mechanics' by the FED, no longer printed, but there isa PDF file in the web.
'Paul Wilmott Introduces Quantitative Finance' by Paul Wilmott.

The first book is about monetary economics. The second book seems to focus mostly on Derivatives. Neither are specific Corporate Finance books.

Post: #4

How about developing a friendly relationship with the successful people you admire, then once you do that asking them for help?

Once you've earned their trust, as well as demonstrated value, they can tell you what you need to know.

There are many nuances all around this which involve managing relationships that you cannot learn in a book, particularly when many academic tomes are written by useless gender-quota talking heads who couldn't succeed in the private sector anyway.

Once you've been given guidance, and understand the relationship side, a handful of algorithms not going to stop you.

In you own time start with finance 101 to get a grounding, PV, FV, IRR, etc. once you understand them and how to input it, software (and graduates) do the work

Post: #5

I can't study books. Too boring. I need to be engaged. I did the CFA level 1 exam as a challenge to learn more. By setting an exam day six months in advance and paying the fees and the practice exams I forced myself to learn. Coming from a non finance background (I am in earth sciences) I knew nothing but learned a lot. I dunno if I will do level 2 and 3 but I felt it was a good way to learn some fundamentals. It was a drain to study on top of work and school so I guess I'll see what the future holds.

If you follow through and complete to level 3 it's incredible on resumes. I'm sure they have exams in India for it, check it out. International recognition


https://www.cfainstitute.org/pages/index.aspx

And hey, if it's useless for you then so what... At least you'll learn something. And pad your business card if you hit level 3!

Post: #6

I used this book in engineering, it was valuable to me at least. There's free PDFs online if you look
http://www.amazon.com/Engineering-Econom...0073376302
Good applied mathematical finance

Post: #7

Mate, a CFA is not a primer, its a high end vocational accreditation.

You don't tell someone to do a CPA to do their own tax return.

Post: #8

^Level 1 wasn't too bad... I passed at least. An hour a weekday studying for maybe two months total then gradual buildup to like 3 hours a day in the final month and a half. But either way that's why I posted the book I learned the most from, there was a lot of repeat in terms of math, just needed to learn definitions.
I'm sure level 1 and 2 are hard as fuck which is why I am not really feeling it. I just can write "cfa level 2 candidate" on my resume if I need a job ha ha. I just did the exam so I could stop drinking so much to be honest, it was a good excuse to bow out of social obligations. Learned a lot though

Post: #9

You could study the Indian AAT. Level 2 you could complete within a week and level 3 a month. Level 4 in 6 months. You get the basic understanding of corporate finance with the added understanding of accountancy procedures that will add value to your firm. Depends how long you want to study and if you want to study for that matter.

Post: #10

(06-20-2015 12:27 AM)Goelsaab Wrote:  Hello fellow Redpillers,

This is my first post on this forum of like minded folks. I am a lawyer from India, who works in a corporate law firm. (I know lawyers are hated in these parts, but then I am not a family/divorce lawyer and despise them as much as any Red piller does.) Anyway, to get back on track, I am trying to get ahead in my firm and I see that while I do not lack in my core proficiency, what separates me from a partner is the knowledge of corporate finance and that they just seem to grasp the nuances of a corporate transaction in lesser time than I do. Could anybody suggest a good book/other resource to understand the nitty gritties of finance in simple language? I would want to understand basic cash flow modelling techniques and financial mathematics.

That may be one of the things that separates you from the partners at your firm, but I guarantee it's not the main thing. In any case, go to Investopedia and search present value, time value of money, and discounted cash flow. There you go - basic cash flow "modeling" and financial mathematics.

The main thing that separates you from the partners is bringing home the bear. Partners directly add to the bottom line by bringing in new business and maintaining it. Partners have equity stakes in the firm and no one is going to dilute their stake to give you equity unless you make the entire pie bigger. At that point, you don't work for the firm. You're only there because the firm's brand supposedly helps you in retaining your clients.

If you can't do that, enjoy being senior associate (read: head slave).

Post: #11

Go to Wall Street Prep and sign up for the basic accounting and financial statements analysis courses.


I do have a referral code good for 15% off. Disclosure is that there is a potential kickback in it, but you'd have to buy over 200 for me to get anything and the courses I'm recommending won't add up to that much.

code: REF116470192

Post: #12

(06-20-2015 03:29 PM)Easy_C Wrote:  Go to Wall Street Prep and sign up for the basic accounting and financial statements analysis courses.


I do have a referral code good for 15% off. Disclosure is that there is a potential kickback in it, but you'd have to buy over 200 for me to get anything and the courses I'm recommending won't add up to that much.

code: REF116470192

You can find free alternatives on websites such as Coursera.

Post: #13

I'm a banker and Peregrine knows what he is talking about. My partner can not build an Income Statement but he is the best salesman I have ever seen.

Post: #14

Also keep in mind that he's NOT a finance guy, he's a corporate law guy doing M&A. At that point he needs to be familiar with the main financial concepts but I highly doubt knowing how to do modeling and forecasting. Knowing what each security involved in each company is, how they work, and how potential M&A's would impact them is probably the extent of his knowledge requirements. The finance guys will do the legwork on that and you just need to understand the concepts well enough to sell them and have an intelligent discussion.

Post: #15

Thanks for the advice, amigos! I have completed some courses on Coursera and Open2Study platforms on concepts of finance, financial analysis and financial mathematics. I am trying to build on the existing base of knowledge and trying to read and absorb as much as I can. A systematic plan of study always helps, but since I am putting 70-75 hours a week of labour, that would be tough but I guess, I will have to live with it.