Richard J. Bocchinfuso

"Be yourself; everyone else is already taken." – Oscar Wilde

FIT – MGT 5002 – Week 5

Discussion Post

Given your risk tolerance, and your need to diversify, explain how the Selected Realized Returns (1926–2013) page 269 and the Effects of Portfolio Risk for Average Stocks will impact your future investment decisions and why

I don’t consider myself risk adverse, but I do consider myself a prudent long-term investor who likes to balance principle protection with reasonable and consistent gains.

Having been in the technology space for the last 25+ years and lived through the bomb I learned my lessons in the late 1990s and early 2000s regarding the difference between a high-risk investment and a foolish investment. The days of reading Red Herring and making investments based on pure market speculation with the expectation of a combinatorial explosion are long gone, at least for me. Today I am a long investor, who follows a very Warren Buffet’esqe investment strategy.

  1. I invest for the long haul.
  2. I keep speculation away and focus on proven business.
  3. I dollar-cost average into the market.

I’ve been investing using DRIP plans for 20+ years, buying stock directly from companies and avoiding brokerage fees. The days of having to buy and read
The Moneypaper are behind us; now long investors can use services like Capital One’s Sharebuilder to dollar-cost average into the market.

I am a big fan of SPDR (spider) ETFs (exchange-traded funds) like SPY and IYY. SPY and IYY are SPDR ETFs that track the S&P 500 and DJIA. Buying equities like SPY and IYY allows investors to diversify by buying a sock that is a fund made up of other stocks.

Outside of the above rules, I have a simple investment strategy, never invest money in the market that you need back in the short-term. The market is speculatory by nature, so I always keep the perspective that I am gambling. With this said there is also a lot I/you can do to swing the odds in my/our favor. While investing is a different type of gambling than going to Vegas, it’s important never to lose sight of the fact that the bottom is still $0 (assuming your not trading on margin in which case the bottom may be below $0). When the market became depressed in 2008, my strategy was to double down. Why?

  1. I didn’t have money in the stock market that I needed; thus I didn’t need to accept my loses and take my cash.
  2. Increasing my positions in what were solid business hit by the depressed economy allowed me to lower my cost basis. This dramatically decreased my time to recovery.

Here is an example:

Desc                            Stock          Position (# of shares)    Avg cost / share       Current cost / share   Cost Basis         Value                  Proft / Loss
Starting Position           XYZ            100                                   $100.00                      $50.00                          $10,000.00          $5,000.00             -$5,000.00
Buy 1                            XYZ            100                                   $50.00                        $50.00                          $5,000.00            $5,000.00                     $0.00
Buy 2                            XYZ            100                                   $51.00                        $60.00                          $5,100.00            $6,000.00                 $900.00
Ending Position            XYZ            300                                   $67.00                        $62.00                          $20,100.00          $18,600.00           -$1,500.00

It’s essential to have a balanced portfolio, balancing small-company stocks which are more volatile (highest risk) but hold the potential for more significant gains with investments like U.S. Treasury Bills which are low risk but deliver much lower potential returns. Balancing returns and principal protection should be key criteria in determining portfolio distribution.


Brigham, Eugene F., and Joel F. Houston. Fundamentals of financial management. Boston, MA, Cengage Learning, 2016.

Frankel, Matthew. “3 Pieces of Warren Buffett Wisdom for an Expensive Stock Market.” The Motley Fool, The Motley Fool, 4 Sept. 2016,

“Recent Articles.” DRIP Investing – Direct Investment Plans & Dividend Reinvestment DRIPs | Moneypaper,





FIT – MGT 5002 – Week 4

Plot the current yield curve from the interest rates of U.S. Treasury securities as found in WSJ or IBD, or examine the chart WSJ or IBD provides. Do not send the curve, but do describe and define it (Normal or Inverted).


  1. Describe the trend of interest rates over the last several years.
  2. Give me your best educated estimate of where interests are headed over the next year and justify your answer.
  3. Determine the approximate percentage appreciation or depreciation of the NASDAQ Composite, Dow Jones Industrial Average, and the S&P 500 for the last 12 months and provide these figures.


Discussion Post

The current (12:43 PM EST 11/17/17) U.S 10 Year Treasury Note yield is 2.338%. With a 52-week yield range of 2.016% (low) to 2.641% (high).  The current U.S. Treasury yield curve is “normal” (upward-sloping) although when compared with the yield curve from a year go (2016) the slope has flattened.

Interest rates from 2008 to 2017 have risen incrementally after falling in the midst of the 2007 financial crisis.

  • Dec 16, 2008 U.S, Prime Rate: 3.25%
  • Dec 17, 2015 U.S, Prime Rate: 3.75%
  • Dec 15, 2016 U.S, Prime Rate: 4.00%
  • March 16, 2016 U.S, Prime Rate: 4.00%
  • June 15, 2017 U.S, Prime Rate: 4.25%

The current U.S. Prime rate remains at 4.25. On Dec 13, 2017 the FOMC will meet again, it is likely that interest rates will slightly increase.

Long-term rates follow the 10-year Treasury yield. We have already established that the 10-year Treasury Yield is “normal” (upward-sloping) so I would expect that interest rates will also rise.

In addition, the October 2017 jobs report showed the addition of 261,000 jobs, indicating an expanding economy. When the economy is strong demand for Treasuries falls, as this occurs prices on U.S. Treasuries fall while yield increases along with interest rates.


Amadeo, K. (n.d.). Where Were the 261,000 Jobs Added in October? Retrieved November 17, 2017, from

Brigham, E. F., & Houston, J. F. (2016). Fundamentals of financial management. Boston, MA: Cengage Learning.

Kenny, T. (n.d.). See How Economic Growth Changes Affect Bonds? Retrieved November 17, 2017, from

Kenny, T. (n.d.). Learn Why Bond Prices and Yields Move in Opposite Directions. Retrieved November 17, 2017, from

Prime Rate History. (n.d.). Retrieved November 17, 2017, from

U.S. 10 Year Treasury Note. (n.d.). Retrieved November 17, 2017, from

What is the Prime Rate. (n.d.) Retrieve November 17, 2017, from

WSJ Graphics. (n.d.). Retrieved November 17, 2017, from


Week 4 Exam (#2): 100%

FIT – MGT 5002 – Week 3


4-1 DAYS SALES OUTSTANDING Baker Brothers has a DSO of 40 days, and its annual sales are $7,300,000. What is its accounts receivable balance? Assume that it uses a 365-day year.

4-2 DEBT TO CAPITAL RATIO Bartley Barstools has a market/book ratio equal to 1. Its stock price is $14 per share and it has 5 million shares outstanding. The firm’s total capital is $125 million and it finances with only debt and common equity. What is its debt-to-capital ratio?

4-3 DuPONT ANALYSIS Doublewide Dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total assets turnover? What is its equity multiplier?

4-4 MARKET/BOOK RATIO Jaster Jets has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding, and its stock price is $32 per share. What is Jaster’s market/book ratio?

4-5 PRICE/EARNINGS RATIO A company has an EPS of $2.00, a book value per share of $20, and a market/book ratio of 1.2×. What is its P/E ratio?

4-6 DuPONT AND ROE A firm has a profit margin of 2% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE?


FIT – MGT 5002 – Week 2

Construct a personal retirement problem and solve it. The purpose of this exercise is to use the chapter’s concepts of future values, annuities, and compounding to your personal financial planning.


    • Determine the amount of investment funds you currently have available in all personal investments and self-directed and vested retirement accounts
    • Then, determine how much you will be adding to your investments a year in the future
    • Next, decide at what age you plan to retire. Determine what annual investment return you expect to earn on your investments
    • Calculate the future value of your investments at retirement
    • Justify your return rate by explaining what you plan to invest in and its historic returns
    • After determining your nest egg at retirement, adjust the variables at least three times as a means of increasing the retirement account. For example, change the age you will retire, change the expected return rate, and change the amount you save annually. Try to adjust the variables in order that you can develop a retirement value that you are happy with


  • Post your answer to this week’s discussion board
    • You can either use real numbers and base your discussion upon these real numbers, or if uncomfortable with providing personal info, use hypothetical numbers


Discussion Post



Week 2 Exam (#1): 100%

FIT – MGT 5002 – Week 1

Discussion Posts

Provide a one-page document outlining your prior financial and/or investment experience and your current interests in this subject if you have any. I realize that many of you are only taking this class because it is required, which is okay, but I would like to learn what you hope to get from this course.


First off I want to apologize to everyone for my late post this week, this will not be a persistent behavior, this week has just been a crazy travel week for me.

Hello! My name is Rich Bocchinfuso; I hold a BS in Computer Science, an MS in Computer Information Systems, and I am pursuing an MS in Information Technology with a specialization in Cybersecurity at Florida Tech. I am 44 years old and have been in technology for the past 20+ years, and I am lucky in the sense that my career as a technologist and programmer is also my passion because I spend 10 to 15 hours a day in front of a computer. I live in New Jersey, and I am based out of my companies New York City regional office, but I am often on the road or working from home. I am married to my wife of seventeen years, Gwen, and we have two little girls Maddy who is twelve and Eden who is seven. Both my wife and I are originally from Pennsylvania, but we have made in New Jersey our home for the past twenty years.

My desire to attend graduate school is driven by personal fulfillment as well as a desire to develop skills which will allow me to grow professionally. My goal is to complete the master’s program in information technology with a specialization in cybersecurity and to put the academic skills I acquire to practical use. I am a driven self-starter who is committed to achieving my educational and professional goals. With the half-life of discrete technical knowledge shrinking I have been leveraging learning platforms such as Coursera, Udemy, CloudAcademy, CBT Nuggets, Codeacademy, SoloLearn and others for years to combat mental atrophy. I regularly listen to and watch podcasts, and read industry publications and whitepapers to stay abreast of industry happenings.

I am an avid listener of The Dave Ramsey Show and Mad Money with Jim Kramer.

For as long as I can remember I have loved tinkering and it is this love of tinkering that became the basis of my love of computing and technology. Over the past twenty-plus years, I have invested an immense amount of time honing my craft. I am an avid maker; I enjoy building things, writing about and sharing what I create. For the past ten years, I have been maintaining and sharing my ideas via my personal blog (

I am an analytical person who enjoys making decisions rooted in empirical data, and I am an INTP (

With regards to my financial experience, I run an engineering division within my company and manage things like labor costs, pipeline, backlog, revenue recognition, resource utilization, gross profit, margins and other critical operational metrics on a daily basis. I have to admit some of the accounting principles like revenue recognition drive me a bit crazy, but MGT5002: Corporate Finance helped me to reconcile many of things that I have been doing for years but didn’t deeply understand why.

Personally, I like to follow the stock market and market trends, especially in the technology sector but I try to maintain a balanced portfolio. Twenty-plus years ago a friend of mine introduced me to Dividend Reinvestment Plans (DRIP) through a book called The Money Paper and the concept of dollar-cost averaging. I started buying stocks directly from companies and have continued this practice of acquiring equities over the past twenty years although today the process is much more straightforward with the emergence of Sharebuilder.

In the late 90s, like many of us in technology at the time, I learned a lot about venture capital (VC), restricted stock, stock preferences, capitalization, and recapitalization. Many of the business decisions that were made in the late 90s and were often driven by VCs and seemed to lack common sense; there was crazy money flowing into tech, venture capitalists were trying to build fast follower businesses and drive to an IPO without sound fundamentals. I learned a lot of what not to do, how not to run a business, etc… during that period of my career.

I am a big Jim Cramer and Dave Ramsey fan, I have read The Total Money Makeover. I would classify personal financial philosophy as fiscally paranoid; my father taught me that you should always be your most significant creditor, meaning that you should pay yourself (save) first and more than you pay any other creditor. This is how I learned to live my life; when things get unbalanced, and the percentages don’t align with my plan I struggle to sleep at night (aka fiscal paranoia).

A couple of my favorite Dave Ramsey quotes are:

  • “If you will live like no one else, later you can live like no one else.” – Dave Ramsey
  • “Act your wage.” – Dave Ramsey

We use many of Dave Ramsey’s techniques in my house, for instance, we have a save, give, and send banks (coffee cans) for each of my children. We ask them to allocate 1/3 or their money for savings, 1/3 of their money for tidings, and 1/3 of their money for spending (acquisition of things).

I hope that I can learn something new and apply academic principles to my applied knowledge which always helps me to develop a deeper understanding of a topic. This was certainly the case with the coursework from MGT5002: Corporate Finance and I suspect it will be the case here as well. With MGT5002, the accounting aspects were not that interesting to me although the material did help me better understand concepts I am exposed to daily, I do have an interest in the capital markets, investing, etc… so I expect to get even more out of this class.

I am happy to be part of this class, and I look for to sharing this learning experience with all of you.


Post an investing website you like to use.


My apologies for the late response, this will definitely not a persistent behavior, this has been a crazy week of travel.

Here are some of the online investment tools I use on a regular basis:
CapitalOne Investing PortfolioBuilder (formerly Sharebuilder):
Robinhood (free stock trading):
Google Finance:
Yahoo Finance:
The Motley Fool:

I also use JStock ( on both my desktop and Android mobile device.



FIT – MGT 5115 – Wk8 Assignment

Create a PowerPoint presentation to address the question below. Your PowerPoint presentation should be 8-12 slides, and developed as if you are presenting to fellow colleagues within the IT industry. 

Discuss whether cognitive overload is a problem in your work or education. Based on your experience, what personal and organizational solutions can you recommend for this problem?

FIT – MGT 5115 – Wk8 Discussion Post

Visit two or more social media sites and review information that people post about themselves and information friends post about them. What types of information is available? What challenges do corporations face with regards to social media? Do companies have social media policies for sharing information? Provide an example.

43% of all social media traffic pictures. This is not surprising given the meteoric rise of Snapchat and conversely the fall of Twitter. Facebook’s acquisition of Instagram for one billion dollars was also a good barometer for this statistic.

Massive social media sites like Facebook and Google+ are dominated by photo sharing while Twitter is more focused on updates about on what’s happening right now, aka your status, news sharing is also widespread on Twitter. And of course services like Snapchat, Pinterest and Instagram are focused on photos.

Social news sites like Reddit, Hacker News, and Digg use social sentiment to curate new stories. Users of these services vote new stories up or down to curate the relevance of the content.

Social Q & A sites like StackExchange, StackOverflow and Quora allow users to ask questions and vote responses up or down. This process identifies the most probable answer using the social sentiment. Responses are validated, and users are given a rating as time goes on.

People post all kinds of data about themselves on social media, some examples include:

  • Photos of themselves (selfies), friends, family, strangers, inanimate objects, etc… you name it, it has been photographed, linked to someones social media profile and shared for the world to see.
  • Opinions on anything and everything.
    • The mobile device and social media have become the immediate way to connect with like-minded individuals, the mobile couch.  I have two words: “vanity search”.  It’s always a good idea to take a deep breath when your angry and sleep on it before taking pen to paper, the same should be true before composing a questionably literate 140 character message that will likely alienate 50% of the people who inhabit the planet with you.
  • Status updates, again about anything and everything. There’s a disturbing notion with the idea that people care that you’re eating a bean burrito, so you need to stop to photograph it, share it on social media with a witty tagline and wait for others to like it, only to slip into a funk when you don’t get the likes you expected. #freakshow
  • Recommendations and warnings of all types.
  • Links to things people read, news stories, other posts, etc..
  • Videos of any variety.
    • E.g. – A video of the United passenger being forcefully removed from an airplane.
      • WARNING:  Everyone is wearing a body cam, and they are excited to use it and share the footage with the world.  Facial recognition algorithms will identify you even when you’re not looking.
  • Travel plans and itineraries. (e.g. – linking TripIt to your social media profile, why no let the world know you’ll be in Europe for a month, sounds reasonable and safe.)
  • Personal and professional accomplishments.

My golden rule is I never mix alcohol and my mobile device.  Shut it off, respond to that tweet in the morning, no need for pictures, there is plenty of Budweiser in the world and as much as I think I need preserve this picture for future generations, I don’t.

Probably more interesting than what we are sharing directly, is the metadata we are creating and sharing.  How you move, where you go, who you connect with, etc… All this metadata has immense value and it’s the data we protect the least.
One of my favorite use cases for social media data and metadata is how we will determine creditworthiness in the future.  Startups like Tala are using social media and mobile metadata to determine creditworthiness and large consumer credit rating agencies like Fair Issac Corporation (FICO) and TransUnion are also adopting this approach to determining creditworthiness.

Here are some challenges that business face with social media:

  • Integration: Where does social media live within the organization? Every business knows it is essential to engage but who should own it. Social media data and social media analytics are providing such strategic value to organizations today that I am seeing Chief Marketing Officers replacing Chief Information Officers in some organizations. Social media and big data analytics have become more powerful than the internal data that drove traditional BI. CMO’s own the social engagement so in some cases they are taking over the conventional CIO role.
  • Governance: I call this reputation management or defense.
  • Culture: Social media shift the employee and consumer engagement model.
  • Human Resources: This all about establishing a social media policy.
  • Measurement & ROI: How will the organization measure the effectiveness of social media on the business and what is the ROI.
  • Security: Social media is a great place for hackers to look for vulnerabilities, using both sophisticated and unsophisticated approaches.

Most companies do establish a social media policy. An example is Adidas’ Socail Media Policy.

Here are some highlights from Adidas’ Social Media Policy:

  1. Employees are allowed to associate themselves with the company when posting but they must clearly brand their online posts as personal and purely their own. The company should not be held liable for any repercussions the employees’ content may generate.
  2. Content pertaining to sensitive company information (particularly those found within Adidas internal networks) should not be shared to the outside online community. Divulging information like the company’s design plans, internal operations and legal matters are prohibited.
  3. Proper copyright and reference laws should be observed by employees when posting online.



5 Terrific Examples of Company Social Media Policies. (n.d.). Retrieved October 18, 2017, from

Armano, D. (2014, July 23). Five Challenges Social Media Will Bring to Business. Retrieved October 18, 2017, from

Hardekopf, B. (2015, October 23). Your Social Media Posts May Soon Affect Your Credit Score. Retrieved October 18, 2017, from

Nations, D. (n.d.). Check Out These Social Sites to Get Your News Fix. Retrieved October 18, 2017, from

Top five risks companies face when using social media. (n.d.). Retrieved October 18, 2017, from

Turban, E., Volonino, L., & Wood, G. R. (2015). Information technology for management digital strategies for insight, action, and sustainable performance. New Jersey (Estados Unidos): Wiley.

What People Share On Social Networks – Statistics and Trends [Infographic]. (n.d.). Retrieved October 18, 2017, from

FIT – MGT 5115 – Wk7 Assignment

Create a PowerPoint presentation to address the question below. Your PowerPoint presentation should be between 8-12 slides, and developed as if you are presenting to fellow colleagues within the IT industry.

Define ERP, SCM, and CRM. Use your textbook as a resource and find additional resources to assist you.

FIT – MGT 5115 – Wk7 Discussion Post

Find examples of how two of the following organizations can improve their supply chains: manufacturing, hospitals, retailing, education, construction, agribusiness, and shipping. Discuss the benefits to the organizations.

Regardless of industry, a good quote-to-cash (Q2C) process is critical to improving the supply chain. Forecasting is an essential component to managing the supply chain, the tighter the forecast, the better the supply chain management process becomes which ultimately improves time to delivery.

Retailers can leverage market and customer intelligence to try to predict demand concerning volume and products more accurately, allowing them to align their inventory management practices with customer demand. No one does this better than Amazon. Amazon has built a platform that leverages machine learning algorithms to create and predict demand; these algorithms also help Amazon masterfully manage the supply chain. Amazon collaborates with customers, allowing customers to create lists, build shopping carts, performing predictive analytics all along the way and making suggestions based on customer buying patterns, steering customer toward specific shipping options and subdividing customers by providing a premium membership option which gives Amazon even more predictability. Amazon also collaborates with suppliers, providing them with analytics on purchases, buyer demographics, and leveraging EDI to for product availability in both the Amazon fulfillment centers as well as marketplace fulfiller warehouses, managing re-orders based on demand and automagically adjusting reorder thresholds. These are just a few of the ways that every retailer can streamline their supply chain. Amazon uses technology to solve an age-old problem elegantly. Because Amazon has become the place people go on the Internet to search for products their market intelligence is incredible, this coupled with their automated fulfillment process, and the scale they have been able to achieve has made them a retail titan.

Manufacturing companies who rely on components or materials from various suppliers can leverage CRM (customer relationship management), ERP (enterprise resource planning), and MRP (manufacturing resource planning) systems to improve visibility and enable quicker and more accurate decision making. In many cases, EDI (electronic data interchange) can be used to create connections to supplier allowing manufacturers to understand supplier inventories in real-time and suppliers to understand manufacturer demand. EDI can benefit both the consumer and supplier.

Regardless of industry good forecasting, efficient communications between buyer and suppliers, standard operating procedures (algorithmic and automated, even better), and an empowered workforce (information is power) can help to address the “bullwhip effect”. The “bullwhip effect” is a term used to describe the impact on the supply chain when there is a significant variance between orders places with suppliers and sales to end customers. When an inability to forecast demand occurs and consumers over order buy, regardless of demand this ripple effect on the supply chain is known as the “bullwhip effect”.

There is no magic bullet to supply chain improvement. Those who endeavor to leverage efficiencies in supply chain management for competitive advantage need to be committed to continuous improvement and the realization that the optimizations put in place today may be different tomorrow.


4 Ways Supply Chain Management Can Reduce the Bullwhip Effect. (2016, October 27). Retrieved October 11, 2017, from

Glatzel, C., Niemeyer, A., & Röhren, J. (n.d.). Three ways CEOs can improve the supply chain. Retrieved October 11, 2017, from

Kunert 2 Nov 2016 at 07:01 tweet_btn(), P. (n.d.). Str-NAND-ed: Flash chip drought hits tech world. Retrieved October 11, 2017, from

Mandell, P. (2014, April 23). Three Steps to Integrating Continuous Improvement Into Your Procurement Organization’s DNA. Retrieved October 11, 2017, from

Order to Cash and Quote-to-Cash… What’s the Difference? (2017, March 30). Retrieved October 11, 2017, from

The secrets behind Amazon’s success. (2016, January 21). Retrieved October 11, 2017, from

Turban, E., Volonino, L., & Wood, G. R. (2015). Information technology for management digital strategies for insight, action, and sustainable performance. New Jersey: Wiley.

FIT – MGT 5115 – Wk 6 Assignment

Create a PowerPoint presentation to address the question below. Your PowerPoint presentation should be 8-12 slides and developed as if you are presenting to fellow colleagues within the IT industry. 

Explain both low-tech and high-tech methods used to gain access to a company’s networks and databases, the vulnerabilities of information systems, and cybercrime symptoms.