SPOTLIGHT ON

Qualitative and
Quantitative Analysis
A finalist shows off his team’s qualitative and quantitative
analysis during the 2019 Global Finale at Wharton.

The Wharton Global High School Investment Competition encourages students to use both
qualitative and quantitative analysis to understand the value of the companies in which they choose to
invest. Think of qualitative analysis as the non-quantifiable information you can find about a company,
like its leadership choices, strategic alliances and other corporate decisions and operations. All of these
contribute to the strength and challenges facing a company. Quantitative analysis refers to the numbers
found in company reports, such as those on the balance sheet. Whether you’re finding out about the CEO
or the income statement, you are researching your options so that, as investors, you can make informed
decisions about where to put your money. This is an important skill to develop.

Wharton Global Youth Voices:

EXPLORE AND LEARN MORE
“Qualitative judgments arguably played a bigger role than quantitative metrics
in our decision-making process, although they work hand in hand. The industry How do qualitative and
the company operates in, the countries, the quality of the management team, quantitative research apply
in a different context (but still
the company’s vision, their target audience –these are all factors that cannot
represent tools that help you
be assigned a value. Successfully recognizing the “soft” skills a company
make informed decisions)?
has marks the difference between a star active fund manager, and a passive Katlyn Grasso, founder and
index fund investor. Anyone can compare numbers on a spreadsheet, but it is CEO of GenHERation, which
the reasons behind those numbers that matter. Succumbing to tunnel vision helps empower young women to
exposes you to making false conclusions based on numbers without context. It become leaders, spoke with the
is very likely that you may then miss opportunities, or make grave mistakes.” Wharton Global Youth Program
when she was first gathering
—Team Zurich of Zurich International School, Switzerland, 2018 insight for her new business.
Investment Competition Here’s what she had to say
about her foray into qualitative
From the Experts: and quantitative research:
KWHS interview clip with
“We try to focus on having a disciplined decision-making process. We can’t
entrepreneur Katlyn Grasso
control the eventual outcomes of investments, but we can control whether we
are taking an approach that is likely to lead to good decisions over time. We
base our decisions on both quantitative and qualitative analyses. I think one
thing people new to investing often find surprising is that the answers are rarely
found in the numbers alone. Ultimately, people matter immensely to the success
of investments, and a big part of our job is evaluating people.”
—Peter Ammon, Chief Investment Officer, Penn Office of Investments,
University of Pennsylvania

WHARTON GLOBAL YOUTH EXPLORES INVESTING

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