How to Properly Invest Its Your Money Make the Most of It
Slide 2
What are Stocks? Literally pieces of a company You pay for the
price of a share (1 stock) However, this price changes each day So,
your goal is to buy when the stock is cheap and sell the stock once
it increases in value In other words, the companys value has
increased a lot. Things to keep in mind: Uncertainty in a companys
future hurts stock values Often, world events also positively or
negatively affect stock values Example: Europes financial crisis
caused United States stocks to decrease in value across the
board
Slide 3
Background on Investing in Stocks Many Americans invest in
stocks without understanding that they can invest without taking a
risk at all! Theres a trick to investing A LEGAL trick If you use
it, you can safely gain money over a long period of time with an
average return more than most other options Even better than
investing in mutual funds, where you have to pay private managers
large fees to pick the stocks Therefore, I challenge all of you to
beat me (and yourselves). I will use the trick, and you will invest
as youd like.
Slide 4
Rules Each person gets $5,000 fake money to invest and fills
out the sheet (example on next slide) You cant go over the $5,000
However, whoever makes the most over their initial investment wins
So, if I invest $4,700 thats OK Well check back every once in a
while to see how our stocks are doing Ill update a leader board on
the board Ill bring more financial advice in from time to time
Remember: always do what you want with your money The information I
provide is simply something thats worked often for financial
professionals (and Harvard Professors)
Slide 5
New Stock Value # Shares Owned $ Gained / Lost New Stock Value
# Shares Owned $ Gained / Lost New Stock Value # Shares Owned $
Gained / Lost New Stock Value # Shares Owned $ Gained / Lost
Companies Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Week 9 Week 10 FINAL $ LOSS / GAIN
Slide 6
Companies to choose from (seniors): Nike$91.15 Target$63.92
Apple $604.00Casio Microsoft$28.21 Google$675.15Coke$37.04
McDonalds$86.71 Coach$55.89 Costco$96.94 Pepsi (AKA YUM!) $68.98
Starbucks$45.87 Doritos Pringles (AKA Kellogg) $52.90
Slide 7
Companies to choose from (freshman): Starbucks $45.87Subway
Jack in the Box$25.67 Apple $604.00 Food City Kroger (AKA Frys)
$25.18 Microsoft$28.21 Panda Express Chipotle$251.52 Raytheon$
55.71 Diary Queen (AKA Berkshire Hathaway) $86.66 McDonalds$86.71
Verizon$44.73 UPS $73.02
Slide 8
Advice ( The Plastic Trap) First, DONT fail to pay your credit
card OR ANY other means of debt (like phone bill or store bill,
etc.) EVEN if it is only $0.01 Know why? Deregulation Do credit
scores exist? Technically Next time: Why college is affordable B.A.
worth $2.1M Over high school Adapted from the Wikimedia Commons
file Smartcard2.png
http://en.wikipedia.org/wiki/File:Smartcard2.png