BUS-123 - Introduction to Investments - Fall 2024
Looking Forward to a Great Semester!
Study and work *every* day!
Free Textbook
Still Plenty of Room in the Class (We take Crashers.)
Tell your Friends, Family Members, and Colleagues
We Gonna' Teach Y'all How to Become Rich!
Southwestern Community College
Instructor: Frank Paiano - Email: fpaiano@swccd.edu
Archive of Spring 2024 Class Website
To enroll in our class, visit Southwestern College Self-Service.
Choose "Fall 2024" for [Select Term].
Choose "Business" for the [Subject].
Enter "123" for the [Course Number].
Finally, select [Search]. Add yourself to the Waiting List.
(We take Crashers. Shhh. Don't tell the Faculty Union, okay?)
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You don't need to enroll if you are only here for the knowledge. The material is freely available to everyone. Welcome! We wish you the best of success in your investing adventure! |
Zoom Meeting Room for Office Hours
| News Flash! Please thank Dr. Mink Stavenga, our Dean, for online access to The Value Line! |
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Southwestern College Students Now Have Online Access to The Value Line You will need your Southwestern College account number and password. (Contact me if you have problems.) |
Textbook: Introduction to Investments
PDF Version (Approximately 30 Megabytes) - LibreTexts.org (mobile-friendly)
Group Based on BUS-123, Introduction to Investments
Thank you, Abe!
Southwestern Investment Club
Thursdays at Noon Online
Zoom Meeting Room for Southwestern Investment Club
Southwestern College Investment Club will resume in the Fall 2024 semester.
See you on August 29th!
See you on August 29th!
Most all the documents are presented via Google Docs. You should be able to read the documents on any device. Very cool!You can use [File] [Download as] to download the documents into Word or OpenOffice format. Or you can use [File] [Make a copy] to make your own Google Docs file. Please don't ask for [Edit] rights. Make your own copy and edit the copy. See the Chapter 1 Study Guide presentation for how to make your own copy.If your device says that the document could not be read, try updating your mobile device's Google Docs app or updating your PC, Mac, or Linux browser. The problem may also be that you are not currently connected to the Internet. Try again when you are connected.You, too, can use Google Docs. It is free and allows you to manipulate your documents on your desktop or laptop computer or your mobile device. Plus they will give you several gigabytes of free storage. Even more cool!Announcements and class material begin below. Keep scrolling. |
Be not afraid."The moral arc of the universe in long, but it bends toward justice." -- Martin Luther King, Jr."This country is so fundamentally strong it can survive its leaders." -- Louis RukeyserIs the American republic built to withstand a malevolent president?Same arguments as during Fascism in the 1930's and 1940's. |
The New Power of the Presidency is Horrifying
The Lincoln Project
Rule of Law Republicans
Republicans Against Trump
Putin and Trump - The Cost of Appeasement
*** Don't Be Frightened ***Yes, yes, I know. This web page looks intimidating. "Aye, Paquito! All those links!"Relax. Much of it is duplicated. (In the case of the presentations, triplicated!) Just get started and remember to listen, watch, and work at least an hour each day. |
Exam #1
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| BUS-123-501/502 | Online | Chapters 1 and 2 Chapter 1: Introduction, Overview of the Investment Universe, Risk versus Return, Short-tern Investments Chapter 2: Mutual Funds: Investment for the Masses Thursday, September 20th, to Sunday, September 23rd, at 11:59 pm |
Announcements
| Announcements (Announcements also available in Canvas) |
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Week #0 - Presemester Announcement - Video - Audio Pre-semester announcement for students already enrolled Pre-semester announcement for students on waiting list |
Chapter Presentations, Handouts, and Assignments
Part 1: Introduction including Mutual Funds |
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Part 1: |
Syllabus: BUS-123-501/502 Short Format - Audio Commentary of Short Format Class Syllabus - Long Format Long format also in Canvas More Student Services More student services not included in syllabus Support for English Learners and Multilingual Students Even more student services not included in syllabus Add your personal email and mobile phone number to Canvas This will ensure that you receive all important communications. And you get 2 extra credit bonus points! Your Humble Professor Introduces Himself Your Humble Professor Introduces Himself with just audio A Guided Tour of the class website - Audio Uh, it's what yer lookin' at right now. Zoom Room Online Office We will have at least twelve online Zoom office hours this semester. Thursday nights from 7:00 pm to 7:55 pm Thursday, August 29th, 7:00 to 7:55 pm (first week of semester) Thursday, September 19th, 7:00 to 7:55 pm (coincide with exam #1) Thursday, October 17th, 7:00 to 7:55 pm (coincide with exam #2) Thursday, October 31st, 7:00 to 7:55 pm (coincide with exam #3) Thursday, November 21st, 7:00 to 7:55 pm (coincide with exam #4) Thursday, December 5th, 7:00 to 7:55 pm (coincide with final exam) Saturday mornings from 11:00 am to 11:55 am Saturday, August 31st, 11:00 to 11:55 am (first week of semester) Saturday, September 21st, 11:00 to 11:55 am (coincide with exam #1) Saturday, October 18th, 11:00 to 11:55 am (coincide with exam #2) Saturday, November 2nd, 11:00 to 11:55 am (coincide with exam #3) Saturday, November 23rd, 11:00 to 11:55 am (coincide with exam #4) Saturday, Deceber 7th, 11:00 to 11:55 am (coincide with final exam) Please let me know what days and times are good for you and we will schedule an office hour for you. |
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Introduction, Overview, and Risk versus Return |
Chapter 1: Introduction, Overview, and Risk versus Return Chapter 1 in textbook on LibreTexts.org Presentation file Every chapter has a Google Docs slide presentation that can be read with Google Docs, OpenOffice, LibreOffice, or PowerPointless Study Guide - Video - Audio Discussion of the chapter study guides and how to use Google Docs Assignment - Commentary The process is more important than the information and answers. Enjoy! Short-Term Investments Assignment - Commentary 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 Forums 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! Work-Based Learning Work-Based Learning Extra Credit Bonus Assignment - Commentary Two points for every Investment Club meeting you attend! Better than a poke in the eye, eh? Security? But I'm not an Administration of Justice Major! No, not that type of security! Security Types Matching Handout - Commentary - Answer Key Memorize for exam! You must know these! Investopedia: What is a Security? Kind of a dumb name, huh? "Security." Sample Portfolio Class Project - Commentary Create Your Own Portfolio: Video - Audio (Check back often to see how we are doing.) Bibliography - Books to Read (Eventually) - Commentary Sixteen Rules for Success According to Sir John Templeton (We will see him in chapter 6.) The World is Global This is Rob Lovelace, one of the grandsons of Jonathan Bell Lovelace, the founder of Capital Group / American Funds. Visualizing the World Economy, August 2023 December 2022 December 2021 Visualizing the World Economy in 2050 Prediction is difficult, especially about the future. Nonetheless, the world is changing. The Value of Long-term Investing Future Value Worksheet - Commentary - Answer Key Future Value Tables Do you want to be an Investor or a Speculator/Trader? Psst! If you want to be an Investor, you have come to the right place. If you want to be a Speculator/Trader, sorry, we can't help you. 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 Speculative Booms of the Past The History of Capitalism is the History of Booms and Busts, Manias and Crashes Schwab's advice on risk versus return Love the part that shows that checking your portfolio more often makes you more nervous and risk averse. 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 get-rich-quick advertisements like these, please send them my way. Thanks! Whoa! 66% per year since 1988! This Porter Stansberry guy has been scamming for over 20 years! At 66% per year, $100 would have become $8,392,496,512 by December 2023. Sure, buddy. 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 Why Brokered CD's Offer Higher Rates Investopedia's discussion of Brokered Certificates of Deposit 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, 2024 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 3, 4, and 5 to see the Treasury bills and other short-term securities that the money market owned on September 30, 2023 Short-term Securities Examples: Video - Audio 2023 Example: Fall 2023 2022 Example: Fall 2022 2021 Example: Fall 2021 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/banking Popular Internet site for researching short-term investments The Federal Reserve Bank and the Money Supply How Does the Federal Reserve System Work Kiplinger's Magazine discusses the goals and inner workings of the Federal Reserve Bank Unusual and Foreboding Change in the U.S. Money Supply Is this a dangerous indicator or simply a reversion to the average after Covid? 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 54 The Relationship of Risk versus Return Chapter 1 - Lecture 4 - Slides 55 to 73 Short-term Investments, A Place to Park Your Money 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 54 The Relationship of Risk versus Return Chapter 1 - Lecture 4 - Slides 55 to 73 Short-term Investments, A Place to Park Your Money Online Audio/Video Lectures on YouTube 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 54 The Relationship of Risk versus Return Chapter 1 - Lecture 4 - Slides 55 to 73 Short-term Investments, A Place to Park Your Money |
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Investments for the Masses |
Chapter 2: Mutual Funds: Investments for the Masses Chapter 2 in textbook on LibreTexts.org Presentation file Study Guide - Commentary Assignment - Commentary 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 Legg Mason Value Trust Now called Clearbridge Value Trust T Rowe Price Dividend Growth Fund Vanguard 500 Index Fund The Admiral shares have replaced the orginial 500 Index Fund Fidelity 500 Index Fund Mutual Fund Types Scramble Sheet (Online lecture 3) - Commentary A Sample Mutual Fund (Online lecture 5 - Just one of over 12,000!) ICA Prospectus: Full - Summary - Webpage - Commentary ICA: 90 Years of Investing - Top 75 Holdings of ICA - The Benefit of Time - Commentary Worst Day / Best Day - Commentary Hypothetical Illustrations (Online Lecture 5) $100 per month for 30 years $100 per month for 40 years $100 per month for 40 years - increase $10 each year $500 per month for 20 years $1,000 per month for 20 years A Shares (commission-based) versus F or I Shares (fee-based, aka Assets Under Management) $500,000 paying the up-front commission - 20 years $500,000 paying a yearly 1.25% annual fee - 20 years $500,000 paying the up-front commission - 25 years $500,000 paying a yearly 1.25% annual fee - 25 years Assets Under Management Hypotheticals Simulating Using Index Funds $500,000 paying a yearly 0.70% annual fee - 20 years $500,000 paying a yearly 0.70% annual fee - 25 years 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 Only shows 310 or so of Fidelity's over 500 mutual funds. Woman CEO! 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 5 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: Difficult to get accurate, current results The Top Three Have Earned Their Stature At least, according to Morningstar.com CityWire Alpha Female Report The Women are gaining but still far behind the Men 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 - Interview with CEO Michael Gitlin Fidelity Funds Insights - Viewpoints - Ned Johnson on Wikipedia - Interview with CEO Abigail Johnson Dodge and Cox Funds Video Perspectives Gallery - Check out The Benefits of an Active Approach to Global Fixed Income 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! The decline and fall of a star stock picker To read this one, you have to create a free account with City Wire Selector Morningstar's take on the Woodford Funds Morningstar also requires you to create a free account to read the article Woodford Funds Debacle The Financial Times now has a "pay wall" for this article. Sorry. You can get it at a library. Recent Mutual Fund Scandal The investment manager was lying about the value of the investments. How did this happen?! |
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