Goizueta Investors

February 28, 2008

Agenda Market Recaps

Domestic International

Stock Market Game Update Book Review: Liar’s Poker GI Challenge

Guess the Dow Contest Winner M&Ms Contest Winner

Upcoming Events

Weekly Newsletter Your one-stop shop for all things financial

Published every Monday

Located at select GBS classes, all GI events

Features Weekly Market Recaps and Special Interest Articles

Available at www.GoizuetaInvestors.com

Dow 198.29, 1.6%

12,582.18

Nasdaq 18.34, 0.78%

2,331.57

S&P 13.71, 1.01%

1,367.68

Domestic Market RecapFebruary 2008

A: UBS write-down (1/30)B: ISM disappoints (2/5)C: Buffett offer to bond insurers (2/12)D: Fed minutes (2/20)E: Bernanke testimony (2/28)

BC

D E

A

DJIA: January - February 2008

Economy

Crude oil at record prices

Weak economic data across the board

Stagflation back in investors’ vocabulary

Interesting News

Microsoft offers $44.6 billion for Yahoo (2/1)

Research in Motion sells more BlackBerries to consumers (2/21)

Delta and Northwest discuss merger, held back by disagreements (2/26)

Market Recap: International 1/30/08 – 2/27/08

England FTSE 100 6,076.50 213.90 3.6%

Germany XETRA-DAX 6,997.85 110.93 1.6%

France CAC 40 4,968.82 27.37 0.6%

Hong Kong HANG SENG 24,483.84 192.04 0.8%

Japan NIKKEI 225 14,031.30 530.78 3.9%

Market Recap: International

US Dollar Index

Market Recap: International

Commodities surge continues Gold: $973.40 per troy oz. Crude Oil: $102.49 per barrel MGE Wheat: $24 per bushel

Inflationary pressures felt throughout the world PPI: +7.4% year over year

Market Recap: International

Sovereign Wealth Funds $3 trillion in total assets ADIA: $900B Govt. Investment Corp. of Singapore: $300B

Nearly $40B invested in US financials

Very little disclosure No regulation, no disclosure requirements

IMF working on “best practices” code

Private Equity What is it and what do they do? Who are the big names? How does a private equity fund make money? What does a private equity deal look like? Why has private equity been all over the news? I want to work in private equity, what should I do?

What Private Equity Does

Buys private firms, or buys publicly traded companies and takes them private.

Leveraged buyouts (LBO’s) Uses money from institutional or wealthy individual investors. Borrows money against these investments for more capital. Industry has $2 trillion under management (est.) $782 billion of PE deals in 2007 (down 53% YTD 2008) Largest PE transaction is the $45 billion buyout of TXU lead

by KKR ($8b equity) First PE buyout of a public company was done by KKR in

1979 in a deal totaling $355 million

How Private Equity Makes Money

50006000

1000

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10000

0

2000

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10000

12000

T=0 T=1

Equity

Debt

50006000

1000

4000

6000

10000

0

2000

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10000

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T=0 T=1

Equity

Debt

Effect of Leverage:Return w/o leverage: 66.7%Return w/ leverage: 300.0%

Effect of Leverage:Return w/o leverage: 66.7%Return w/ leverage: 300.0%

($k)

The Big Players

First firm to take a public company private

Henry Kravis made $51,369/hr last year

First PE firm to offer an IPO Founder Steven Schwarzman

richest man in private equity

Berkshire Hathaway While not strictly considered a PE firm,

Berkshire Hathaway is very similar This makes it the largest PE firm, worth

over $200 billion A shares go for $140k, B for $4,675 The Big Players won’t talk to you unless

you have at least $10 million Smaller middle market firms will want at

least $500k Warren Buffet is the only PE fund

manager who will reveal his strategy You can read his investor letters Or go meet him next year, but still read

the letters, there’s great stuff there

11

Fantasy Stock Market Rankings

DateRankin

g UserGain since

InceptionTotal Portfolio

Value

2/ 27/2008 1 tmac001 65.16% $16,516

2 Pear 40.54% $14,054

3 micht1986 37.17% $13,717

4 pwehttam 29.87% $12,987

5 gautam8 16.29% $11,629

6 gregoryrives 12.05% $11,205

7 lazehaze 9.66% $10,966

8 meanspride 8.53% $10,853

9 McLaughlin 8.32% $10,832

10 jbasago 8.25% $10,825

Fantasy Stock Market Game

Book Review Liar’s PokerBy Michael Lewis

VSVS

GI Market ChallengeDJIA on 2/22: 12,381.02

Max Ogienko 12,171.00 -210.02

M&Ms in the Bottle: 432

Rebecca Dodson 448 +16

GI Market Challenge

At what level will the Dow close on 3/21? Email guesses to dow@learnlink.emory.edu Check it at: Blog.GoizuetaInvestors.com Deadline: 11:59pm on Thursday, 3/6 Winner announced at next meeting

Resume Drop Box

Upcoming Events 3/6: Bowling Night

3/10: Spring Break

3/18: GI Day

3/26: Movie Night: Boiler Room

Private Equity Seminar

Third General Body Meeting