Category: Stocks

Question of the Day: Indicate if stock was among the best or worst performing over the past decade: Kraft/Heinz, Netflix, Under Armour, Ulta Beauty.

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Jan 07, 2020
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Investing, Question of the Day, Stocks
With a new decade upon us, let's look back at the 2010s to see which stocks were on the best and worst performing lists.  Answer: Kraft/Heinz: Worst (58% price decline) Netflix: Best (+3787% price increase) Under Armour: Worst (60% price decline) Ulta Beauty: Best (+1206% price increase) Questions: Why do you think that Netflix and Ulta Beauty have done so well as stocks over the past decade?  Why do you think that Kraft Heinz and Under Armour have performed so poorly? What...

Reading List for January 3-5 (2020!)

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Jan 03, 2020
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Financial Literacy, Student Loans, Stocks, Checking Accounts
Happy New Year! This week's list includes a few articles reflecting back on the the past decade, as well as reflections on personal financial health and habits. If you want an incredibly comprehensive look at what transpired in 2019, Barbara O'Neill has your back in this Journal of Financial Planning article, 2019 Personal Finance Year in Review.  Financial Literacy The emphasis in this article is moving the financial education much earlier in a child’s development. (Education Dive)...

QoD: Starbucks vs. Dunkin Donuts: Which company's stock has performed better over the past five years?

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Nov 12, 2019
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Investing, Question of the Day, Stocks, Index Funds
People tend to be pretty vocal about their preferred "go-to" coffee spots.  Who is winning the coffee war (from the investor's perspective)? Answer: Starbucks.  Questions: What factors do you think contribute to the very different market performance of these companies? Starbucks is much larger and has a larger international presence. Do you think those factors are important? Which do you personally prefer? Explain why you prefer it. Would you make an investment decision based on a...

Stock Showdown QoD: Which company has performed better over the past five years, Netflix (NFLX) or Disney (DIS)?

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Sep 11, 2019
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Question of the Day, Stocks, Investing
Answer: Netflix Netflix, at a recent price of $290/share, has increased 450% in the past five years ago, while Disney, at a recent price of $140/share, is up 169% compared to five years ago.     Questions: Both companies are in the business of entertaining, but have taken different approaches. How would you sum up each company in ONE sentence? What factors do you think contribute to the very different market performance of these companies? When you look for entertainment, which of...

Interactive Monday: Can You Time The Market?

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May 19, 2019
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Interactive, Stocks, Investing
Another engaging interactive to dispel the notion that one can time the market.  Here's the description of the game (from Betterment) which is about 3-4 minutes long and can be played multiple times: Many investors believe (or act as if they believe) they can beat the market through timing their deposits or asset allocation. Our interactive simulation puts you in the driver’s seat to decide whether to invest or sell based on actual New York Times headlines since 1928. Click below...

QoD: How many of the 12 largest companies in 2000 were still one of the largest 12 in 2018?

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May 12, 2019
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Investing, Question of the Day, Stocks, Index Funds
Answer: 4 Exxon Mobil went from #2 to #11 Wal-Mart Stores went from #6 to #12 Microsoft went from #7 to #3 Johnson & Johnson went from #11 to #9 Questions: Compare the list in 2000 to 2018. Write one sentence that describes how the economy has changed in the past 18 years based on changes in the largest companies. Which industries have grown the most?  How many of the top 12 companies on the list in 2018 are you familiar with?  How has the value of the three companies that...

Reading List for May 11-12

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May 10, 2019
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Investing, Stocks, Advocacy, Credit Cards, Mortgages, Retirement
  Investing We will start with Investing this week because this week's biggest news is today’s Uber’s IPO. Here is all you need to know about the one of the largest IPOs! (NYT) Uber was priced at $45/share--the “low end,” and keeping the valuation at $82B, well below the expected $100B. Looks like “low end” wasn’t low enough. Watching CNBC Squawk Box as the market was “building the book” before the first trade was fascinating as the...

QoD: Nike or Under Armour: Which company's stock has performed better over the past five years?

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May 08, 2019
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Investing, Question of the Day, Stocks
Answer: Nike, by a long shot! Nike closed the trading day on May 1 at $85.27, up $35.77 on June 1, 2014, for an average annualized return of 19.35%.  Under Armour, on the other hand, closed the trading day on May 1 at $22.82, DOWN from its price of $29.75 five years earlier for an average annualized loss of over 2%. Here's the chart: Questions: What factors do you think contribute to the very different market performance of these companies? Which products do you personally prefer?...

Chart of the Week: Company Lifespan on the S&P 500

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May 07, 2019
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Index Funds, Chart of the Week, Stocks, Investing
From Innosight's research on Creative Destruction: Key insights include: The 33-year average tenure of companies  on the S&P 500 in 1964 narrowed to 24 years by 2016 and is forecast to shrink to just 12 years by 2027 (Chart 1). Record private equity activity, a robust M&A market, and the growth of startups with billion-dollar valuations are leading indicators of future turbulence. A gale force warning to leaders: at the current churn rate, about half of S&P 500 companies...

Podcast: Investing Panel with Jonathan Clements and Bill Bernstein in March 2019

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Apr 19, 2019
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Investing, Podcasts, Stocks, Behavioral Finance
What follows is a summary of the Investing panel discussion held at the NGPF Summit in mid-March 2019 in San Francisco. The all-star panel included Bill Bernstein, financial theorist, neurologist, and financial adviser/author, and Jonathan Clements, WSJ columnist, author, educator and blogger at the HumbleDollar.com. Apologies for the inconsistent sound quality.  Details 0:00~4:25 Introduction 4:25~12:42 The stock market game’s traps 12:42~24:20 Importance of friends and...

Interactive Monday: Stock Trading Game a.k.a. Can You Trade Individual Stocks?

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Apr 14, 2019
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Interactive, Stocks, Index Funds
Hat tip to Christian for discovering this interactive from Bloomberg that will get those day traders in your classroom excited.  Here's the game unfolds: A stock price chart for an undisclosed company scrolls across the screen for 30 seconds.  When you want to buy the stock you hold down the touchpad. You release the touchpad when you want to sell.  You have the opportunity to make repeated buy/sell decisions during the course of the 30 seconds.  At the conclusion of the...

QoD: AT&T vs. Verizon: Which has been the better performing stock over the past five years?

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Apr 10, 2019
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Stocks, Question of the Day
Tired of those annoying TV ads comparing networks? Well it's about to get worse...a lot worse!!! With 5G launching on April 11th, here's a look at how the two major wireless carriers have fared over the PAST five years. What do you think the future holds?  Answer: Verizon Questions: Why do you think Verizon has performed better than AT&T since January 2018?  How do you think these two companies make their money? What is the key metric to the health of their businesses?  This...

Chart of the Week: Periodic chart for asset returns

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Apr 09, 2019
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Chart of the Week, Investing, Stocks
Hat tip to NGPF Fellow Charles Kafoglis for sending a note to me highlighting this set of charts from Callan Associates. Think of the chart below as the periodic table for stock market returns for various asset classes (think stocks and bonds, U.S. based and international). Each column represents one year and each box represents a specific asset class which has a specific color assigned to it. The percentages reflect the returns for that specific asset class. There's a lot to unpack here but...

Chart of the Week: Boom or Bust with Tech IPOs

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Apr 03, 2019
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Chart of the Week, Investing, Stocks
Hat tip to Morning Brew for highlighting this chart in their daily newsletter.  With a flood of IPOs about to hit the market (Pinterest, Uber and AirBNB to name a few), I thought this chart was an important reminder that not every tech IPO goes BOOM!    Questions: Why do you think that companies like GoPro and Fitbit have struggled so much as public companies? (Hint: are there other products similar to theirs?) Square is a top performer. Do you know what business they are in? Do...

5 Cool New Videos: Savings Tips, Payday Lending and Stock Market Winners and Losers Over the Past 20 Years

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Mar 20, 2019
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Video Resource, Credit Cards, Financial Scams, Compound Interest, Investing, Stocks
I wanted to share some cool new videos that we have come across in our travels: Three Psychological Tricks to Help You Save Money (TED Talks; 5 minutes); hat tip to Yanely for connecting us to Wendy; hope to have her on podcast in the future.    Backgrounder on the Payday Lending industry (PBS NewsHour; 4 minutes); good opportunity to discuss the financial pitfalls of payday lending, it's fee structure and the role of regulation in consumer protection.    How...