BUS-123 - Introduction to Investments
Fall 2021
Semester Starts August 23rd

Southwestern Community College
Instructor: Frank Paiano

Group Based on BUS-123, Introduction to Investment
Thank you, Abe!

Introduction to Investments Textbook
A Free Manual for Building Wealth


Chapter Presentations, Handouts, and Assignments


Part 1:
Introduction


Syllabus:
BUS-123-502 Online - Long Format  Long format also in Canvas
Videos on Apple iTunes  iTunes has been eratic of late. I think Apple is going to shut it down soon.
Zoom Room Virtual Office  We will have at least three office hours this semester, typically Thursday nights from 7:00 pm to 7:55 pm.
   Dates:
     Tentative: Thursday, September 16th (coincide with exam #1)

Chapter 1:
Introduction,
Overview,
and
Risk versus
Return


Chapter 1 Materials - Introduction, Overview, and Risk versus Return
Presentation file  Every chapter has a Google Docs slide presentation that can be read with Google Docs, OpenOffice, LibreOffice, or PowerPointless
Study Guide -
Assignment - Commentary   The process is more important than the information and answers. Enjoy!
Short-Term Investments Assignment -
TreasuryDirect.gov Assignment - Commentary
   TreasuryDirect.gov  Your Federal Tax Dollars at Work!
   Cetes Directo    El TreasuryDirect.gov de Mexico - Miralo - Una tasa de interes mas grande que los estados unidos
How to Submit Assignments - Commentary
Discussion Boards Assignment Everyone post! We need your input! Don't worry about what you will say! Just write something! - Commentary
  Add your picture to the discussion boards!  We want to see your smiling face!

Security? But I'm not an Administration of Justice Major!   No, not that type of security!
Security Types Matching Handout - Answer Key   Memorize for exam! You must know these!
Investopedia: What is a Security?

Sample Portfolio Class Project - Commentary

Bibliography - Books to Read (Eventually) - Commentary
Future Value Worksheet - Commentary - Answer Key
Future Value Tables

Scams   They want to take your money!
Turn $33,000 into $7,000,000 in just 2 years! - Rates of Return - Commentary
  Yet another scam -- Turn $500 into $650,000 with no risk!  When you see advertisements like these, please send them my way. Thanks!
Investopedia article on recent stock scams
Advice from a Scam Expert on How to Spot a Scam
The same kind of illegal behaviors go on in the world of weight loss supplements  Some weight loss supplements have Prozac and Viagra!

Short-term Securities Investments
Investopedia: An Introduction to Commercial Paper
T. Rowe Price Cash Reserves Money Market Fund  Interesting. This fund can have securities that mature in up to 397 days but the average is 60 days.
Fidelity Money Market Fund  Annual Report -- April 30, 2021
Vanguard Municipal Money Market Fund  Municipal money market funds are tax-exempt at the Federal level
U.S. Government Money Market Mutual Fund Annual Report  Scroll down to pages 5 and 6 to see the Treasury bills and corporate paper that the money market owned on September 30, 2020
Short-term Securities Examples: Video - Video (CC) - Audio
  2020 Example: Spring 2020
  2019 Example: Spring 2019
  2018 Examples: Fall 2018 - Spring 2018  The Federal Reserve Bank started raising short-term rates in 2015
  2014 Example: Fall 2014 -  Before 2015, short-term rates were close to zero!
Interview with a Dyed-in-the-Wool CD Investor  Jeanne tells you why she will only invest in short-term investments
Bankrate.com  Popular Internet site for researching short-term investments

Online Audio Lectures
Chapter 1 - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1 - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1 - Lecture 3 - Slides 35 to 53    Risk versus Return
     Liar's Poker Story - Slide 47    Are you a Speculator/Trader or are you an Investor?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogle nails the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy
     The Value Line on the Difference between Investing and Speculating/Trading

Online Audio/Video Lectures
Chapter 1 - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1 - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1 - Lecture 3 - Slides 35 to 53    Risk versus Return
     Liar's Poker Story -- Slide 47    Are you a Speculator/Trader or are you an Investor?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogle nails the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 1 - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1 - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1 - Lecture 3 - Slides 35 to 53    Risk versus Return
     Liar's Poker Story -- Slide 47    Are you a Speculator/Trader or are you an Investor?
     Investopedia on the Difference between Investing and Speculating/Trading
     The Difference between Investing and Speculating/Trading according to Forbes
     Jack Bogle Interview with Forbes  Aha! I found it! In this interview, Jack Bogle nails the difference between investing and speculating. Scroll down to [06:09] Emotion Is The Enemy

Online Audio/Video Lectures on iTunes
Scroll to individual presentations    (iTunes does not allow direct links to the presentations. Sorry.)
     Liar's Poker Story -- Slide 47    Are you a Speculator/Trader or are you an Investor?
     Investopedia on the Difference between Investing and Speculating/Trading

Chapter 2:
Mutual Funds:
Investments
for the
Masses


Chapter 2 Materials - Mutual Fund: Investments for the Masses
Presentation file
Study Guide -
Assignment -
Mutual Fund Annual Report Assignment - Commentary   (You can use the Annual Reports and Prospectuses links below)
Thrift Savings Plan Assignment - Commentary
Bonus Assignment: Index Funds and Diversification -
Mutual Fund Case Studies - Commentary  (Not an assignment but something like this might just be on the exam -- hint, hint)
Investor.gov: What Are Mutual Funds   The Federal government explains mutual funds

Mutual Funds Used in Lecture #2
AB Large Cap Growth Fund   Formerly Alliance Large Cap Growth Fund
The Growth Fund of America
Legg Mason Value Trust   Now called Clearbridge Value Trust
Vanguard 500 Index Fund
Fidelity 500 Index Fund

Mutual Fund Types Scramble Sheet (Online lecture 3) - Commentary

A Sample Mutual Fund  (Online lecture 4 - Just one of over 12,000!)
ICA Prospectus: Full - Summary - Web page - Commentary
ICA: 87 Years of Investing -  Commentary: Video - Video (CC) - Audio
Top 75 Holdings of ICA -  Commentary
The Benefit of Time -  Commentary
Worst Day / Best Day -  Commentary

401(k), 403(b), and other Employer-sponsored Plans
Jack Bogle sticks it to the 401(k) world  And Senator Oral Hatch is not pleased...

Offerings of Sample Mutual Fund Companies Performance  (Online lecture 4)
Vanguard Funds Performance
American Funds Performance
Fidelity Funds and all the other funds that they offer through their web site    Over 3,400 no transaction fee funds. Over 9,700 funds total! Woman CEO!
Dodge and Cox Funds Performance
T. Rowe Price Funds
Franklin Templeton Funds    Woman CEO!

Annual Reports and Prospectuses  (Online lecture 4 and Mutual Fund Annual Report Assignment)
Vanguard Funds
American Funds
Fidelity Funds    Woman CEO!
Dodge and Cox Funds
T. Rowe Price Funds
Franklin Templeton Funds  Choose fund and then find [Documents] - Woman CEO!

Top 10 Largest U.S. Fund Families: Morningstar  ThinkAdvisor, Sep 2019 - Careful: Different sources have different results
The Top Three Have Earned Their Stature  At least, according to Morningstar.com

Mutual Fund Commentaries, Insights, and Perspectives
Vanguard Insights - John Bogle's Official Website - Obituary for Howard Schow
American Funds Investment Insights - The Capital Ideas (Parent company of American Funds) - Obituary for Jon B. Lovelace
Fidelity Funds Insights - Viewpoints - Ned Johnson on Wikipedia
Dodge and Cox Funds Video Perspectives Gallery - Insight Papers - Video Gallery Check out The Case for Active Management
T. Rowe Price Investing Insights - Biography of T. Rowe Price, Jr.
Franklin Templeton Funds Investing Commentary - John Templeton's Official Website

No Investment Is Perfect ...
Mutual Funds Far Outperform Mutual Fund Investors   Huh? That does not make any sense. But it is true! See last presentation.
Why The Average Investor's Investment Return Is So Low
Like Moths to a Flame   In January 2014, investors (?) rushed out of stock funds and into bond funds ... at just the wrong time. Fun video.
A Cautionary Tale for Investors   An example of a mutual fund without proper oversight by the Board of Directors
Woodford Funds Debacle   An example of a mutual fund manager who believed he was invincible. Look for long-term results, Dear Students!
  Another article about Woodford    To read this one, you have to create a free account with City Wire Selector
  Morningstar's take on the Woodford Funds    Again, Morningstar requires you to create a free account to read the article

Text Book


Breaking News!
We are writing an Open Educational Resource (OER) version of the textbook.
(Ah, that means it is free to read.)

Here is the link: Introduction to Investments: A Free Manual for Building Wealth




The previous book is okay. It is worth maybe $25 or $30. The new version sells for over $300. Too much!
If you can get it used online for $10 or $20, then it may be worth it, especially if you love books.
Here are links to sellers of the previous textbook: "Fundamentals of Investments" by Jordan & Miller
The previous text book is usually also available across the street at Otay Books.
Except for the data being updated, there are not many differences between the 4th, 5th, 6th, 7th, 8th, and 9th editions.
Also, there are two copies in the main campus library on reserve. You can read them there but they can not be checked out
Please listen to the syllabus commentary about the textbook. (Hint, hint. Wink, wink. Nudge, nudge. Use the free textbook.)

9th Edition -- This is the latest version of the previous textbook
Amazon: https://www.amazon.com/Fundamentals-Investments-Management-Bradford-Jordan
eBay.com: Various editions available on eBay
Chegg.com: Seems they only have up to edition #8 on Chegg
8th Edition -- Very similar to the current edition (but cheaper)
Amazon: https://www.amazon.com/Fundamentals-Investments-Management-Bradford-Jordan/dp/1259720691/ref=dp_ob_title_bk
eBay.com: Various editions available on eBay
Chegg.com: Seems they only have up to edition #8 on Chegg.com
7th Edition -- Very similar to the current edition (but even cheaper)
Amazon: https://www.amazon.com/MP-Fundamentals-Investments-Stock-Trak-card/dp/0078115663/ref=sr_1_2?ie=UTF8&qid=1470412788&sr=8-2&keywords=fundamentals+of+investing+7th+edition+jordan
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-7th-edition-9780077861636-0077861639?trackid=67a86a11&strackid=6c290340&ii=5
6th Edition -- Also very similar to the current edition (but even more cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurance/dp/0077457641/ref=dp_ob_title_bk
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-with-stock-trak-card-6th-edition-9780077457648-0077457641?trackid=YAJcVwrZ&ii=1&om_ss=1
5th Edition -- Again, very similar to the current edition (but really, really more cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurane/dp/0077283295/ref=sr_1_6?s=books&ie=UTF8&qid=1322833773&sr=1-6
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-w-sp-card-stock-trak-card-5th-edition-9780077283292-0077283295?trackid=5a730d99&autosuggest=1&uqry=9780077283292&ii=1
4th Edition -- You guessed it! Very similar to the current edition (but probably the cheapest)
Amazon: http://www.amazon.com/Fundamentals-Investments-McGraw-Hill-Finance-Insurance/dp/0073027219/ref=sr_11_1?ie=UTF8&qid=1199133503&sr=11-1
eBay.com: Various editions available on eBay

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