Category: Stocks

Question of the Day: If you invested $1,000 in Netflix stock ten years ago, what would it be worth today?

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Dec 17, 2017
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Stocks, Question of the Day, Investing, Current Events
  Answer: $51,966 (as of 10/31). Remember when subscribing to Netflix meant watching the mailbox for DVDs?  One look at their stock price appreciation lets you know they successfully navigated through the “disruption” to at-home entertainment with the adoption and availability of streaming video.  In fact, they are expected to spend $8 billion on original content in 2018.  As for Blockbuster, they did not fare so well. Netflix’s success earned it a place in...

Chart: What financial assets do families own?

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Nov 29, 2017
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Stocks, Chart of the Week, Checking Accounts, Investing
Hat tip to Big Picture Blog Questions: In your own words, what is an asset? Which financial asset has seem the greatest increase in ownership between 2001 and 2016? What do you think are examples of Transaction Accounts? Certificates of Deposit and Savings Bonds  both saw sharp drops in the percentage of households holding them between 2001 and 2016. What do you think that has been the case?  You read this headline "No one seems to be saving for retirement today." Does this chart...

Question: How much money is there in the world?

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Nov 28, 2017
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Economics, Question of the Day, Research, Savings, Chart of the Week, Stocks, Investing, Current Events
Answer: It depends on how you define money. From $7.6 trillion (physical currency) to $90 trillion (broad money).  This audio and infographic below are great ways to bring the concept of money to life and also help provide context to the size of the various markets and the U.S. position relative to the rest of the world.  Audio from Marketplace (hat tip to Sonia; duration, 3:19):  Questions:  What type of money is included in M0 (zero)?  What is included in the term...

Question of the Day: What percentage of U.S. mutual fund assets are in index (or passive) funds?

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Nov 27, 2017
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Investing, Question of the Day, Stocks, Mutual Funds
Answer: 42% From LA Times: More from the LA Times: These “passively managed” or “index” funds have delivered as they said they would — and have shamed many “actively managed” U.S. stock funds, the majority of which over the long run have failed to exceed or match the average market return after deducting their fees. Passive funds were relatively slow to catch on with individual investors in the 1980s and ’90s. But over the last few years,...

Article: The Dead Man Fund

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Nov 17, 2017
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Investing, Article, Mutual Funds, Savings, Stocks
This 7 minute article that appeared in Longreads hooked me in the first paragraph:  In 1989, Morningstar, Inc., an advisory service, issued a strongly worded and unusual recommendation to its clients who had placed money with a firm then called the Steadman Funds (later known as the Ameritor Funds). “We urge you to cut your losses and get out,” Morningstar counseled. Doubtless, some investors heeded this advice. Many couldn’t, though, because they were dead. I wanted to...

Question of the Day: What is the most valuable U.S.-based company?

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Nov 15, 2017
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Investing, Stocks, Question of the Day, Research, Chart of the Week
Answer (as of 11/15/17): Apple From Visual Capitalist comes this fascinating chart of top 10 companies over the past 100 years: Questions: Compare the largest companies from 1917 to the largest companies in 2017: Are there any companies that that stood the test of time and appear in both lists? Does this surprise you? How has the industry composition of these two sets of companies changed over the past 100 years?  You see a newspaper article noting that there is a concentration of...

NGPF Podcast: Tim Talks to Fred Selinger, Personal Finance Educator At Cal Berkeley

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Nov 12, 2017
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Personal Finance, Podcasts, Stocks, Budgeting, Investing
Thanks to Fred Selinger, Personal Finance instructor at Berkeley's Haas School of Business for joining me recently on the NGPF podcast. Fred shares his exciting story of how he went from a successful business career in corporate finance to taking on the challenge of building a personal finance program at one of America's flagship universities, the University of California at Berkeley. He describes the meteoric rise of the program: from the the first day of class when he didn't know if anyone...

Question: Why Invest?

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Nov 05, 2017
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Investing, Savings, Chart of the Week, Stocks
I saw this headline recently and immediately started to predict all the reasons the writer was going to enumerate about the benefits of investing. Yes, we all have seen those listicles that make great clickbait about the "10 Reasons You Better Invest!" Instead, the writer surprised me with a one word answer that everyone can understand: Inflation. Read on to find out why inflation matters... From Monevator:  This graph shows how what you can buy with £10,000 falls over the...

Saving vs. Investing: Where Should You Put Your Money?

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Sep 29, 2017
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Article, Budgeting, Stocks, Personal Finance, Investing
Warren Buffett, perhaps one of the most well-known investors (and philanthropists) of our time, once said, “Do not save what is left after spending, but spend what is left after saving” (EOC POTPOURRI: Financial Literacy Edition). These days it’s all too easy to follow the mantra “treat yo self” and spend your hard earned money on things you don’t necessarily need the minute you get that direct deposit notification. So how much should you save every time you...

What Company Has Created The Most Wealth Since 1926?

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Sep 25, 2017
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Investing, Stocks, Chart of the Week, Question of the Day
And the winner is.....Apple at almost $1 TRILLION! Great chart from NY Times shows the 50 companies that created the most wealth in the last 90 years (size of the circles is based on the company's compound annualized stock return): Questions: In your own words, how does the graph measure wealth creation?  In looking at the wealth created by companies that have been publicly traded for less than thirty years, what industry are most of the companies operating in?  Which ten companies...

Question: What's Your Tolerance for Risk?

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Sep 21, 2017
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Investing, Stocks, Index Funds, Article, Question of the Day
One of the most fundamental questions when creating an investment plan is assessing how one feels about risk, or to put it more specifically, how does one feel about losing money. If you feel the need to check your investment portfolio every hour or so fearing an incipient crash, well you might not do well with a 100% stock portfolio. Similarly if you are a buy and hold (and forget) type, and you understand the value of long-term investing and bought more stock in 2008 when the stock market...

Activity Idea: 36 Obvious Investing Truths

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Sep 19, 2017
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Investing, Activity, Activities, Article, Stocks, Index Funds
I am an avid reader of Ben Carlson's Blog A Wealth of Common Sense for a good reason; he takes this complex topic of investing which vexes many an educator and makes it accessible and simpler for all of us to understand. His recent post, 36 Obvious Investing Truths is a great example of this common sense approach to investing as he distills his years of experience into a set of "truths." Here are a few examples: 1. If you need to spend your money in a relatively short period of time it...

Who Invests in the Stock Market (By State)?

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Sep 08, 2017
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Stocks, Research, Current Events, Question of the Day, Chart of the Week
Hat tip to Big Picture Blog which had a post from a few St. Louis Fed researchers showing how stock market participation varies by state even when taking into account income levels: Here's a chart showing how participation levels vary based on income level and highlights the state with the highest participation (Connecticut) and lowest participation levels (Mississippi):  Questions for students: Average household income in the U.S. is around $50,000. What percentage of...

This 48 Minute Podcast Explains The Investing Revolution

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Aug 01, 2017
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Index Funds, Research, Investing, Stocks
Teachers often complain that investing is one of their most challenging topics to teach and surprise, surprise, it is an area that students struggle with understanding too. So much jargon (P/E ratios, dividends, IRRs, oh my), so many choices (thousands of stocks and mutual funds to choose from) and so little experience. It’s no wonder that it can seem so overwhelming. Yet there is another way to think about investing and it has one major difference from the existing way that it is taught...

Videos, Videos, Videos

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Jul 23, 2017
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Cryptocurrencies, Career, Stocks, Current Events, Video Resource, Entrepreneurship, Retirement
Stumbled upon this video trove on Ozy this morning that had some short, relevant and engaging videos that I thought your students might enjoy. Many of them ask provocative questions that can be good entry points for a class discussion: Future of Money (3:03) In your own words, what is bitcoin and other cryptocurrencies? Why is it popular? What is an example of an “intermediary” in the money business that bitcoin is trying to eliminate? Where do you think that you will keep your...

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