Category: Stocks

Question of the Day: Over a recent 20 year period, what percent of pros investing in large companies "beat the market?"

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Jun 06, 2021
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Question of the Day, Investing, Stocks, Index Funds
Answer: 94% of investment pros underperformed (see below), so 6% outperformed.  Questions: Why do you think investing professionals struggle to "beat the market? Why do you think investors continue to invest their money with professionals despite their record of not being able to "beat the market?" Your friend says "you are better off investing with professionals instead of buying a simple index fund (e.g., S&P 500) that matches the market return." Do you agree or disagree based on...

NGPF Podcast: Don O'Neal of the Capital Group on the value of investing for the long-term

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May 21, 2021
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Investing, Podcasts, Stocks
  Don O'Neal of Capital Group joins the NGPF podcast this week. The Capital Group manages more than $2 trillion in assets and is considered one of the top "active" investment managers. Don shares with us the insights from his 35 years in the business, including the analytical process that goes into picking stocks, the value of having a long-term time horizon and how he overcomes the common cognitive biases that plague investors.He also shares the unique organizational structure at the...

Question of the Day: What percent of American families invest in the stock market?

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May 19, 2021
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Question of the Day, Investing, Stocks, Mutual Funds, Index Funds
Answer: 52.6% Questions: When do you hope to start investing in the stock market?  This data is from a 2019 Federal Reserve survey. Do you think more families have invested in the past two years?  This data shows that only 15% of families own individual stocks. Why do you think that most investors choose funds (indirect) which are collections of stocks rather than individual stocks (direct)?  Click here for the ready-to-go slides for this Question of the Day that you can use in...

Question of the Day: Which company, used by more than 1/2 of 9-12 year olds on a weekly basis, recently listed their stock on the NYSE?

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Mar 15, 2021
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Question of the Day, Investing, Stocks
Answer: Roblox recently listed on the NYSE and has a ticker symbol of RBLX and is valued at $40 billion (as of 3/15/21) Questions: Why do you think that Roblox is such a valuable company? How does Roblox make money? Hint: What currency do you buy to make your game experience better? What is one question you would ask before deciding to invest in Roblox? Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers (CNBC): ...

Question of the Day: What was the first Black-owned business listed on the New York Stock Exchange (NYSE)?

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Feb 16, 2021
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Question of the Day, Investing, Stocks, Entrepreneurship
Answer: Black Entertainment Television (BET) was founded by Robert Johnson, America’s first Black billionaire, and his company was listed on the NYSE in 1991.  Question: How does a company benefit from being listed on a stock exchange? The founder, Robert Johnson, noted that his first job was managing a paper route as a kid. What lessons do you think he learned from that experience? Why do you think BET was such a successful business?  Click here for the ready-to-go slides for...

NGPF Podcast: Paul Merriman discusses his new book, We're Talking Millions: 12 Simple Ways to Supercharge Your Retirement

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Feb 06, 2021
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Podcasts, Investing, Stocks
Paul Merriman is out with a new book, We're Talking Millions, and he is offering at no cost to the personal finance community (link here). In this podcast,  he discusses several of the ideas from the book that literally are million dollar decisions. We also dive deeper into the benefits of dollar-cost averaging, difference between growth and value stocks and what to look for in target-date funds (#1 selected fund for 401(k) plans). Enjoy! Details: 0:00~0:27 Introduction 0:27~12:14 Current...

Podcasts In The Classroom: What's New In the World of Investing?

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Nov 02, 2020
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Podcasts, Investing, Stocks, Podcasts In The Classroom
Welcome to the first official Podcast Tuesday! After more than 400 teachers expressed interest in bringing podcasts into the classroom, we decided to build out a weekly activity to fulfill that desire. This week's activity (you will be asked to Make a Copy when clicked) focuses on the world of investing with 3-6 minute audio files explaining sustainable investing, the pros/cons of the Robinhood investing app and an analysis of who is benefiting from the recent rise in the stock market....

Question of the Day: This company, whose product is now being used by millions of students every day, has seen its stock price rise by more than 700% this year. Can you name it?

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Oct 18, 2020
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Question of the Day, Investing, Stocks
Hat tip to Amanda Volz for inspiring today's QoD.  Answer: Zoom Questions: Do you currently use Zoom? Had you heard of Zoom pre-pandemic?  How do you think Zoom's business will do post-pandemic? Will two of their larger sectors, education and business, return to more in-person interactions reducing their reliance on a product like Zoom?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers...

NGPF Podcast: Jack Gecawich on the dangers of apps that "gamify" investing

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Aug 14, 2020
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Podcasts, Investing, Stocks
Jack is a repeat guest on the podcast. He's currently a student at East Greenwich High School in Rhode Island. When we last spoke with Jack earlier this year he was advocating for financial education alongside Treasurer Magaziner. In this podcast, Jack discusses his work this summer leading a group of students through a series of investing lessons. Well, that's what I thought we were going to talk about. Instead our conversation took a detour as we talked about the speculative nature of today's...

Reading List for July 31-Aug 2

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Jul 31, 2020
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Economics, Investing, Stocks, Paying for College, Retirement
There was so much relevant news this week, this list runs a bit long, but it is sure to have something you will find interesting!     Economics The Federal Reserve met this week and left interest rates unchanged (near zero). Dow jumps 150 points. (Forbes) Far and away the biggest economic news this week was the historic annualized drop of 32.9% in the second quarter. (Note: add this example to your lesson on compounding.) Did one-third of the economy disappear in the second...

What's New With Investing - 2020

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Jul 30, 2020
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Investing, Stocks, Retirement, Current Events
This update is dominated by the impact Covid-19 has had on the investing this year.   Why is the stock market, after initial chaos at the beginning of the pandemic, not reflecting the downturn in the economy? What should investors consider in terms of diversifying, rebalancing, and retirement savings? And what about gold?   The NYSE president explained at the end of May that the “market” as represented by the S&P 500 or Dow Jones Industrial Index is a) forward looking...

Question of the Day: Do investors buy stocks in companies based on TV commercials?

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Jun 03, 2020
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Question of the Day, Behavioral Finance, Investing, Stocks
Answer: YES Questions: Why do you think that investors buy stocks in companies after they see a TV ad on those companies?  Are there ads or commercials that you have seen over the past week where you think "Hmmm...that could be a good investment?" Do you think this is a good idea? What other research might you want to do before making a decision to buy stock?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.  Behind the...

Chart of the Week: How do stock, bonds and cash returns vary?

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May 05, 2020
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Chart of the Week, Investing, Stocks
Hat tip to Beth Tallman for this idea:  Explanation: This chart graphs the range in annual returns for stocks, bonds and cash (think savings account) with the average indicated in blue.    Questions: One of the core tenets in investing relates to the relationship between risk and return. Complete this sentence: the higher the risk of an asset, the _______ the expected return. Which of the following assets (stocks, bonds or cash) has the highest risk? Which asset has the...

Question of the Day: How did investors change their investment strategies in March after the 12% market drop?

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Apr 28, 2020
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Investing, Question of the Day, Stocks, Behavioral Finance
Answer:  Questions: In March 2020, the stock market had its worst month since October 2008. Based on the data in the previous table, what actions did investors take in March? When investors sell stocks they convert one asset (stocks) into another asset (cash). What are the reasons you think that investors were selling stocks in March and holding more cash? Your friend says, “Of course everyone knows the stock market is going to drop because of the pandemic. I’m going to wait...

Question of the Day: What stock has been the best performer this calendar year: Amazon, Walmart or Costco?

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Apr 15, 2020
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Investing, Question of the Day, Stocks
Answer: Amazon From FinViz (as of the close on 4/15/20):  Note: Percentage is the change in the stock price since January 1st.  Questions: Why do you think that Amazon has performed better than the other two companies? A recent study found that 6.3% of groceries were purchased online in 2019. Do you think the current pandemic will permanently alter the way people buy their groceries? Do you/your family have a favorite among the three companies? If so, which one do you/your family...