Steve Rubis Presents Investment Analysis Seminar for Lockheed Martin Enterprise Operations – Finance

By: Louis Entsminger

On May 17, 2007, Steve Rubis gave a seminar on equity investments to the Enterprise Operations Finance community of Lockheed Martin at The Mission Inn at Howey-in-the-Hills, Florida. The presentation covered topics pertinent to both the novice and sophisticated investors. He spoke on topics such as opening an investment account, developing a strategy, and triangulating a fair value. The following is a quick recap of the presentation.

There were two underlying themes throughout the presentation: investors need to develop a strategy that fits their discipline, and equity research does not need to be scientifically accurate but consistent. A quick analysis of history’s most successful money managers shows that simple and logical methodologies work best. Clearly defined methodologies are easier to understand as well as implement successfully. This speaks to the difference between accuracy and consistency.

Investment analysts will not always be scientifically accurate. Determining equity valuations is more art than science and relies heavily on analyst assumptions. An investor’s primary concern should always be is the specific advice consistent. Investors cannot reasonably expect an analyst to create a precise value; rather, the creation of a valuation range is a more realistic. Equity valuation is ultimately a sign or guide for investors, not a scientific answer.

The presentation offered advice on how to start and develop an investment strategy. Novice investors should start by developing a savings program, which will provide the capital necessary for an investment program. Most should consider opening either a personal investment account or Roth IRA as a supplement to their retirement savings. Finally, it is imperative that employees take advantage of matching contribution programs offered by their employer.

Equity valuation provided the crux of the argument, which provided the greatest value to attendees. Participants learned about valuation tools to determine private equity, relative multiple, earnings power, and reproduction value. Mr. Rubis further applied these techniques through industry and comparative analysis. Attendees were given a quick tutorial in multiple valuation methodologies.

The seminar was a resounding success for the first time presenter. Most attendees were captivated and impressed with the enlightening presentation. Hopefully, more groups will be interested in Mr. Rubis’s stock presentations.