Investment Analysis and Acquisition Decisions

This unit develops students’ ability to evaluate a range of investment options—from stocks, bonds, and funds to real estate and small businesses—and to make informed acquisition and financing decisions for agribusiness contexts. Students will practice due diligence, identify misleading information, establish financial goals, and create balanced portfolio and buying strategies that build on foundational investing concepts and prepare them for advanced application in subsequent units.

Learning Objectives

• Analyze the characteristics, risks, liquidity, and expected returns of common investment vehicles (stocks, bonds, mutual funds/ETFs, lending instruments, real estate, and small-business ownership) and compare their suitability to specific agribusiness financial goals
• Evaluate sources of investment information (media programs, newsletters, internet resources, unaudited claims, and investment books) to identify hype, bias, and unreliable performance claims and apply verification techniques for due diligence
• Apply financing and acquisition strategies by assessing options for purchasing businesses or real estate, determining prerequisites and drawbacks to buying, and making incorporation and funding decisions based on cash flow and risk analysis
• Demonstrate portfolio-management and stock-buying methods by establishing measurable financial goals, constructing an asset allocation that maintains balance and perspective, and employing appropriate fund selection and bond assessment techniques