BUS-123 - Introduction to Investments - Fall 2024
Study and work *every* day!
Free Textbook
Southwestern Community College
Instructor: Frank Paiano - Email: fpaiano@swccd.edu
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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
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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
Ooops! We are postponing the Investment Club for Fall 2024
Southwestern College Investment Club will resume in the Spring 2025 semester.
Exam #3
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| BUS-123-501/502 | Online | Chapters 5, 6, and 7; Review Chapters 3 and 4 Chapter 5: Fundamental Analysis: Financial Statements and Ratio Analysis Chapter 6: Efficient Market Theory: "Who Can Beat the Market?" Chapter 7: Technical Analysis: Reading Squiggles on a Computer Screen Review: Chapter 3: Introduction to Stocks Review: Chapter 4: Fundamental Analysis: Valuation Models Thursday, October 31st, to Sunday, November 3rd, at 11:59 pm |
Announcements
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 eighteen 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 19th, 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, December 7th, 11:00 to 11:55 am (coincide with final exam) Wednesday afternoons from 4:00 pm to 4:55 pm, online via Virtual Office and in Tijuana Wednesday, October 2nd, 4:00 to 4:55 pm (conincide with exam #1 of twelve-week hybrid class) Wednesday, October 9th, 4:00 to 4:55 pm (third week of twelve-week hybrid class) Wednesday, October 16th, 4:00 to 4:55 pm (coincide with exam #2 of twelve-week hybrid class) Wednesday, October 30th,, 4:00 to 4:55 pm (coincide with exam #3 of twelve-week hybrid class) Wednesday, November 27th, 4:00 to 4:55 pm (coincide with exam #4 of twelve-week hybrid class) Wednesday, December 4th, 4:00 to 4:55 pm (coincide with final exam of twelve-week hybrid class) 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.) Snapshot (6 Sep 2024) Here, we go! Check out our list of 10 stocks. All are very different companies. Snapshot (9 Feb 2024) Hey, hey! We are up 2% already, thanks mostly to Blackstone. Well done! Snapshot (23 Sep 2024) Another good week! Up over 3%. Not bad, Dear Students. (Remember that it ain't always like this.) Snapshot (27 Sep 2024) Steady week. Blackstone and Nike are our biggest positions now. Snapshot (4 Oct 2024) Blackstone is still our biggest winner. Did anyone research them for the chapter 3 assignment? Snapshot (11 Oct 2024) A little bump up from Chevron. Up a bit over 3%. Snapshot (18 Oct 2024) Whoa! Over 6%! Everybody is up except for FedEx but look at Blackrock! Snapshot (25 Oct 2024) Backed down just a bit. It was a rough week for some stocks. A great week for others. 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. Typical speculators, aka traders It's stressful! Typical investors Wouldn't you really rather be an investor? 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 original 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 - Commentary: Video - Audio Top 75 Holdings of ICA - Commentary 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 Commentary: Video - Audio 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 Commentary: Video - Audio 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?! Online Lectures Chapter 2 - Lecture 1 - Slides 1 to 20 Introduction to Mutual Funds Chapter 2 - Lecture 2 - Slides 21 to 40 Fees, Expenses, and Class Shares, Oh My! Chapter 2 - Lecture 3 - Slides 41 to 56 Types of Mutual Funds (Scramble Sheet) Chapter 2 - Lecture 4 - Slides 57 to 61 The Great Debate: Passive Versus Active Management Chapter 2 - Lecture 5 - Slides 62 to 79 Fund Families and a Sample Mutual Fund Online Audio/Video Lectures Chapter 2 - Lecture 1 - Slides 1 to 20 Introduction to Mutual Funds Chapter 2 - Lecture 2 - Slides 21 to 40 Fees, Expenses, and Class Shares, Oh My! Chapter 2 - Lecture 3 - Slides 41 to 56 Types of Mutual Funds (Scramble Sheet) Chapter 2 - Lecture 4 - Slides 57 to 61 The Great Debate: Passive Versus Active Management Chapter 2 - Lecture 5 - Slides 62 to 79 Fund Families and a Sample Mutual Fund Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 2 - Lecture 1 - Slides 1 to 20 Introduction to Mutual Funds Chapter 2 - Lecture 2 - Slides 21 to 40 Fees, Expenses, and Class Shares, Oh My! Chapter 2 - Lecture 3 - Slides 41 to 56 Types of Mutual Funds (Scramble Sheet) Chapter 2 - Lecture 4 - Slides 57 to 61 The Great Debate: Passive Versus Active Management Chapter 2 - Lecture 5 - Slides 62 to 79 Fund Families and a Sample Mutual Fund |
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Part 2: Stocks, also known as Equities |
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to Stocks |
Chapter 3: Introduction to Stocks Chapter 3 in textbook on LibreTexts.org Presentation file Study Guide Assignment Stock Markets Assignment - Commentary Earnings Call Assignment - Commentary Stock Worksheets Stocks Worksheet 1 - (Lecture 2 and 4) - Commentary - Answer Key Stocks Worksheet 2 - (Lectures 2, 5, and 6) - Commentary - Answer Key Stocks Worksheet 3 - (Lecture 6) - Commentary - Answer Key Dividend Reinvestments Plans (DRIPs) Sempra Energy DRIP (Lecture 4) - Commentary Stock Transactions The difference between limit, stop, and stop-limit orders Limit, schlimit! If you want the buy or sell the stock, just use a market order! Market Simulation Handout - Commentary Presentation: Chaos in the Classroom! (Spring 2020 just before the lockdown): Video - Video (CC) - Audio Even in hindsight, it is difficult to choose stocks Ninety Years Ago (Lecture 3) - Commentary - Results Don't Peek Until You Have Chosen a Company! Note: Amazon replaced Walgreens in 2024. The Thirty Stocks in the Dow Jones Industrial Average Internet Finance Web Sites (Assignments, Lecture #3) Presentation: Video - Audio The Value Line Awesome resource that used to be pay only. Check it out! We will use The Value Line extensively in the next chapter on valuation. Yahoo Finance Yahoo Finance was the best free finance site. It is still useful but not as much as before. Oh, well. E-mail to and response from the CEO of Verizon Verizon bought Yahoo. The CEO answered me personally! (Verizon then sold Yahoo.) Bloomberg Finance Marketwatch Wall Street Journal's free web site (Not so free anymore...) Morningstar Same website as chapter 2, mutual funds. Google Finance Google Finance is great for checking on the international markets CNBC BigCharts Now owned by MarketWatch Investopedia Pretty good website (even though it is owned by the same folks who own Tinder) The New York Times Markets Overview The Spread - How market makers (aka dealers) make money Casas de Cambio - San Ysidro and Tijuana (Lecture 2) - Video - Audio - YouTube This is the Spring 2024 presentation. The Fall 2024 presentation will be coming soon. The dollar has since risen dramatically against the peso. Investopedia explains the bid-ask spread Robinhood is not free! How does a brokerage firm that changes no commission make money? From the spread! The SEC is not happy with Robinhood But doesn't everyone know that they are still being charged when they use Robinhood? (I guess not...) How Robinhood makes money on $0 trades Investopedia is skeptical but not very critical of Robinhood. Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders However, this guy claims the spreads on Robinhood are very high. SEC Considers Banning Order Flow! 31-August-2021: Whoa! Wouldn't that upset the apple cart?! ESG - Environmental, Social, and Governance What is it? Yet another buzz term to throw around or a real issue (actually three) that must be considered when investing? ESG will eat itself Critical look at the difficulties in defining what is good and what is bad FINRA - Financial Industry Regulatory Authority FINRA Investigate your broker and brokerage firm at FINRA's BrokerCheck FINRA Broker Check Just type "PAIANO" for the name and hit [Enter] FINRA Registered Representative Brochure Registered Representative is the legal term for a Stockbroker The new Securities Industry Essentials Exam Started October 1, 2018 Solomon Securities Industry Essentials Exam Preparation Just one of many exam prep companies (I don't get any kickback!) The FINRA Investor Knowledge Quiz Actually, you should wait until the end of the semester before taking this quiz! FINRA SIE Exam Practice Exam Take it over and over and over again! Wait until the end of the semester. Stock Certificates Disney - Allied Signal - Campbell Soup Company - Commentary Penny Stock and Other Stock Scams What Are Penny Stocks The Risks of Penny Stocks DPER -- From $0.006 To $0.06 In Just 9 Days! (Lecture 5) - Commentary Psst. DPER is gone! Last sold for $0.0000 PPTL -- Turn $0.0138 to $0.05 In Just One Week! What is it selling for now? $0.0000 Yahoo! Advertisement for AwesomePennyStocks.com - Another: "Penny Stocks Made Me Rich!" The same people who are doing the recommending to you are the same scam artists who are selling the bogus stocks to you! They "pump" up the price and then "dump" all the shares! It is a very old scam. AwesomePennyStocks.com shuts down after SEC/FBI probe Sigh. These scams will never end as long as people are greedy and stupid. Another web site that was shut down And they spelled "receive" incorrectly! I before E except after C... Two British Teens Ran "Stock-Picking Robot" Scam Email scam using PRFC - PRFC was one of the few legitimate companies on the OTC. They warned the investment community that they were being used by the penny stock scammers. DRMC: 25-Feb-2015 - 26-Feb-2015 -- Definitive Rest Manufacturing Formerly manufactured mattresses but now makes materials for aerospace industry. Uh, right... STHC: 24-Feb-2015 - 25-Feb-2015 -- SouthCorp Capital Started June 2014 as a company refurbishing run-down homes but now is manufacturing cans and weight loss products. Okay... How Bernie Madoff Made Off With $18 Billion They also ask the question, "Are we protected from the next major Ponzi scheme?" (Spoiler: No.) PBS Frontline's take on Madoff's fraud 60 Minutes: The Man Who Knew 60 Minutes interviews the man who reported Madoff to the SEC. They didn't listen. IPO -- Initial Public Offering or It's Probably Overpriced? It's Probably Overpriced! Rigging the IPO Game Bear markets come and go. Keep a long-term perspective. History of Bear Markets - (Lecture 3) - Commentary Another History of Bear Markets Five Weeks of Hell - Fall 2008 It's gonna' happen ag'n, Folks. We just don't know when. Be prepared emotionally. What Past Market Declines Can Teach Us Don't Lose Perspective (Lecture 5) - Commentary BGFN, The Benjamin Graham Financial Network! - Commentary How to Handle a Market Decline Don't panic. Keep a long-term perspective. Buy more! Three Ways to Prepare for Down Markets Bibliography - Read! It will give you an unfair advantage over everyone else! Books to Read about Stocks - Commentary (Same as Chapter 1) Rewards of keeping a long-term perspective 96-Year-Old Secretary Quietly Amasses a Fortune Stocks can make you rich, Dear Students ... but it takes time Woman buys 3 shares of Abbott Labs at age 26 When she dies at 100, she leaves $7 million to her favorite college High Frequency Trading (HFT) FINRA High-Frequency Trading (HFT) Concerns But this guy says that HFT is good for us! Arrgh! Brad Katsuyama, the Hero of Flash Boys, begs to differ. "The system is rigged." And he started IEX to level the playing the field Mr. Katsuyama's full speech The link above is an excerpt SEC gives approval to IEX to become a stock exchange FranklinTempleton, Capital Group, and other large financial firms and pension funds backed IEX Citadel tries to stop IEX! Citadel is the company that pays Robinhood for the order flow. They don't want any competition! One False Move A High Frequency Trading firm loses $440 million in 45 minutes Warren Buffett and Berkshire Hathaway The History of Berkshire Hathaway Class B Shares Robo-Advising? Robo-Trading? What is this? It sure ain't investing! Fidelity Robotic Trading System Whatever it is, they were charging 1.25% each year! Looks like random senseless trading by a computer. Presentation: Video - Audio Online Audio Lectures Chapter 3 - Lecture 1 - Slides 1 to 12 Introduction to Stocks - Historical Returns - Advantages and Disadvantages Chapter 3 - Lecture 2 - Slides 13 to 35 The Stock Markets (aka The Capital Markets) Chapter 3 - Lecture 3 - Slides 36 to 46 Stock Transactions, Transaction Costs, and Stock Quotes Chapter 3 - Lecture 4 - Slides 47 to 59 Market Averages and Indexes; Volatility Reexamined Chapter 3 - Lecture 5 - Slides 60 to 73 Stock Characteristics and Measurements Chapter 3 - Lecture 6 - Slides 74 to 84 Types of Stocks, Growth versus Value, and Market Capitalization Online Audio/Video Lectures Chapter 3 - Lecture 1 - Slides 1 to 12 Introduction to Stocks - Historical Returns - Advantages and Disadvantages Chapter 3 - Lecture 2 - Slides 13 to 35 The Stock Market (aka The Capital Markets) Chapter 3 - Lecture 3 - Slides 36 to 46 Stock Transactions, Transaction Costs, and Stock Quotes Chapter 3 - Lecture 4 - Slides 47 to 59 Market Averages and Indexes; Volatility Reexamined Chapter 3 - Lecture 5 - Slides 60 to 73 Stock Characteristics and Measurements Chapter 3 - Lecture 6 - Slides 74 to 84 Types of Stocks, Growth versus Value, and Market Capitalization Chapter 3 - Lecture 7 - Slides 85 to 92 Stock Investment Strategies Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 3 - Lecture 1 - Slides 1 to 12 Introduction to Stocks - Historical Returns - Advantages and Disadvantages Chapter 3 - Lecture 2 - Slides 13 to 35 The Stock Market (aka The Capital Markets) Chapter 3 - Lecture 3 - Slides 36 to 46 Stock Transactions, Transaction Costs, and Stock Quotes Chapter 3 - Lecture 4 - Slides 47 to 59 Market Averages and Indexes; Volatility Reexamined Chapter 3 - Lecture 5 - Slides 60 to 73 Stock Characteristics and Measurements Chapter 3 - Lecture 6 - Slides 74 to 84 Types of Stocks, Growth versus Value, and Market Capitalization Chapter 3 - Lecture 7 - Slides 85 to 92 Stock Investment Strategies Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available) Chapter 3 - Lecture 1 - Slides 1 to 12 Introduction to Stocks - Historical Returns - Advantages and Disadvantages Chapter 3 - Lecture 2 - Slides 13 to 35 The Stock Market (aka The Capital Markets) Chapter 3 - Lecture 3 - Slides 36 to 46 Stock Transactions, Transaction Costs, and Stock Quotes Chapter 3 - Lecture 4 - Slides 47 to 59 Market Averages and Indexes; Volatility Reexamined Chapter 3 - Lecture 5 - Slides 60 to 73 Stock Characteristics and Measurements Chapter 3 - Lecture 6 - Slides 74 to 84 Types of Stocks, Growth versus Value, and Market Capitalization Chapter 3 - Lecture 7 - Slides 85 to 92 Stock Investment Strategies |
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Fundamental Analysis: Valuation Models |
Chapter 4: Fundamental Analysis: Valuation Models Chapter 4 in textbook on LibreTexts.org Presentation file Study Guide Chapter 4 Valuation Models Assignment - Commentary Chapter 4 Value Line Assignment - Commentary Great News! The Value Line is now available online through the Southwestern College Library! The paper version of The Value Line is available at the Chula Vista and San Diego Central Libraries. It is also available at selected San Diego branch libraries. This list may be out of date. Call First. Their website only shows the San Diego Central Library and Rancho Bernardo but we know it is available at other branches. The Newport Beach Public Library gives you online access to The Value Line for six months. (Then you have to travel up to Newport Beach to get a permanent account.) Presentation: Video - Audio Pretzels Unlimited Discounted Cash Flow Spreadsheet (Lecture 3) Presentation: Video - Audio Valuation Worksheet 1 - Commentary - Answer Key Jimba Jomba Jumba Juice Discounted Cash Flow Spreadsheet Presentation: Video - Audio Valuation Worksheet 2 - Commentary - Answer Key The Value Line: Johnson 'n' Johnson Spreadsheet - Video - Audio Chapter 4 Formulas Present Value Table (Needed for Discounted Cash Flow Model calculations) Online Audio Lectures Chapter 4 - Lecture 1 - Slides 1 to 5 Introduction to Valuation Models Chapter 4 - Lecture 2 - Slides 6 to 20 Dividend Discount Models Chapter 4 - Lecture 3 - Slides 21 to 36 Discounted Cash Flow Model Chapter 4 - Lecture 4 - Slides 37 to 49 The Value Line: A Sip from the Financial Firehose Online Audio/Video Lectures (Closed captioning available) Chapter 4 - Lecture 1 - Slides 1 to 5 Introduction to Valuation Models Chapter 4 - Lecture 2 - Slides 6 to 20 Dividend Discount Models Chapter 4 - Lecture 3 - Slides 21 to 36 Discounted Cash Flow Model Chapter 4 - Lecture 4 - Slides 37 to 49 The Value Line: A Sip from the Financial Firehose Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 4 - Lecture 1 - Slides 1 to 5 Introduction to Valuation Models Chapter 4 - Lecture 2 - Slides 6 to 20 Dividend Discount Models Chapter 4 - Lecture 3 - Slides 21 to 36 Discounted Cash Flow Model Chapter 4 - Lecture 4 - Slides 37 to 49 The Value Line: A Sip from the Financial Firehose |
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Fundmental Analysis: Financial Statements and Ratio Analysis |
Chapter 5: Fundamental Analysis: Financial Statements and Ratio Analysis Chapter 5 in textbook on LibreTexts.org Presentation file Study Guide Financial Ratios Assignment - Commentary Financial Ratios Formulas Financial Statements Sprouts Balance Sheet Sprouts Income Statement Sprouts Cash Flow Statement aka Statement of Cash Flows SEC Edgar Search for Company Annual and Quarterly Filings All publicly traded companies are required to file their financial statements here Online Audio Lectures Chapter 5 - Lecture 1 - Slides 1 to 20 Financial Statements & Ratio Analysis Chapter 5 - Lecture 2 - Slides 21 to 41 More Ratio Analysis Online Audio/Video Lectures Chapter 5 - Lecture 1 - Slides 1 to 20 Financial Statements & Ratio Analysis Chapter 5 - Lecture 2 - Slides 21 to 41 More Ratio Analysis Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 5 - Lecture 1 - Slides 1 to 20 Financial Statements & Ratio Analysis Chapter 5 - Lecture 2 - Slides 21 to 41 More Ratio Analysis |
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Efficient Market Theory: "Who Can Beat the Market?" |
Chapter 6: Market Efficiency Theory: "Who Can Beat the Market?" Chapter 6 in textbook on LibreTexts.org Presentation file Study Guide Assignment - Commentary The New York Times says that women are better investors than men - Free link for 30 days after 13 October. And CNN agrees that women are better investors than men. Ten Cognitive Biases that can lead to investment mistakes Hamish Douglass of the Magellan Group Wise advice: Do the opposite of what everyone else is doing! The 2000's were a rough decade for investors. Five Largest Financial Bubbles in History As told by Investomedia Someone who was involved in the dot-com bubble describes the current kleptocurrency bubble. (Oops! Now they want you to pay.) Henry Blodget was one of the most influential Internet analysts of the late 1990's. Politics and the Markets "Poli-" means "many" and "-tics" are blood sucking insects. Which Political Party Has Been Good for the Stock Market? Both! Democrats hold a slight advantage over Republicans. Republicans don't like it when you tell the truth about energy Blackrock counters that we have to concern ourselves with our clients, not your MAGA politics. Blackrock to no longer use the term "ESG" The term has been weaponized to gin up the right-wing outrage machine. Wisdom from some of the All Stars of Investing The Psychology of Human Misjudgment Charlie Munger's treatise on why we shoot ourselves in the foot. Six Lessons for Investors From Thinking Fast and Slow by Daniel Kahneman. Read it! Online Audio Lectures Chapter 6 - Lecture 1 - Slides 1 to 13 Market Efficiency Theory: "Who Can Beat the Market?" Chapter 6 - Lecture 2 - Slides 14 to 33 Investor Psychology, Active vs Passive Revisited, All Stars, and Famous Myths and Stupid Sayings Online Audio/Video Lectures Chapter 6 - Lecture 1 - Slides 1 to 13 Market Efficiency Theory: "Who Can Beat the Market?" Chapter 6 - Lecture 2 - Slides 14 to 33 Investor Psychology, Active vs Passive Revisited, All Stars, and Famous Myths and Stupid Sayings Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 6 - Lecture 1 - Slides 1 to 13 Market Efficiency Theory: "Who Can Beat the Market?" Chapter 6 - Lecture 2 - Slides 14 to 33 Investor Psychology, Active vs Passive Revisited, All Stars, and Famous Myths and Stupid Sayings |
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Technical Analysis: Reading Squiggles on a Computer Screen |
Chapter 7: Technical Analysis: Reading Squiggles on a Computer Screen Chapter 7 in textbook on LibreTexts.org Presentation file Study Guide Optional Bonus Assignment - Commentary Technical Analysis Presentation: Video - Audio (Use for bonus assignment) Random Charts Spreadsheet (Press [F9] repeatedly.) - Commentary Who wants to be a Trader/Speculator? Learn to be a trader in 3 days! Special price! Only $1,495! Traders Boot Camp! Only $6,900 -- That's $1,000 off the regular price! The Last Resistance Level Before a Major S&P 500 Breakout Example of a Technical Analyst telling you that the market could go up or down. Bearish Engulfing Pattern! Kiplinger is not impressed. But then Kiplinger says, "Well, maybe Technical Analysis ain't all that bad." (Don't believe them!) Warrior Trading Three levels of suckers, ah, I mean traders! FinViz.com A former student tells me he uses this website to help with his technical analysis. The management assumes no responsibility. Please stay long-term oriented with high-quality investments $15,500 to $1,000,000 to $7,000 Oh, well. It was nice while it lasted. Don't Panic! Yet another example of investors selling at the bottom. "The investor's chief problem, and even his worst enemy, is likely to be himself." -- Benjamin Graham Buy High, Sell Low? Sure, why not?! NOVA Documentary: Betting on the Market - 1997 Watch for the couple from New York who put everything into AMLN. Starts around 27 minutes. AMLN - Amylin Pharmaceuticals The next year, AMLN quickly lost over 95% of its value. Series 7 Stockbroker Exam Specifications FINRA (Financial Industry Regulatory Authority) Securities Industry Essentials: New Exam Coming! FINRA wants to make it easier for you to enter the industry Securities Industry Essentials: It's Here! The SIE, Securities Industry Essentials, exam is now available Securities Industry Essentials: Content Outline Here is the content outline -- much of what it is in BUS-123, Introduction to Investments! Securities Industry Essentials: Practice Exam Cool! FINRA is offering a free practice exam. (Notice they showcase a woman on the webpage. We need more women in the industry!) Online Audio Lectures Chapter 7 - Lecture 1 - Slides 1 to 24 Technical Analysis: Reading Squiggles on a Screen Online Audio/Video Lectures Chapter 7 - Lecture 1 - Slides 1 to 24 Technical Analysis: Reading Squiggles on a Screen Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 7 - Lecture 1 - Slides 1 to 24 Technical Analysis: Reading Squiggles on a Screen |
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Part 3: Bonds, also known as Fixed Investments or Fixed Income Investments |
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Introduction to Bonds |
Chapter 8: Introduction to Bonds Chapter 8 in textbook on LibreTexts.org Presentation file Study Guide Assignment - Commentary Bond Quote Sources FINRA bond search page This is the new and improved bond search page. That is a nice way of saying that it is harder to use. Presentation: Video - Audio Composite Rates Composite Bonds Rates from Fidelity Can be used for question #4 of assignment. Wall Street Journal Bond Rates Also shows yield curve which we discuss in chapter 9. Federal Reserve Bank of St. Louis Bond Research Web Site Great resource for researching about bonds in aggregate (but no individual bond quotes). What should we do with Fannie Mae and Freddie Mac? We are still trying to decide what to do with Fannie Mae and Freddie Mac Here is an explanation of how they currently are working and an incremental change that may or may not help. When Will Government Control of Freddie Mac and Fannie Mae End? Dramatization of how some folks were able to bet against the mortgage market before the Global Financial Crisis Video clip from The Big Short "What could possibly go wrong?!" Plenty! Bond Quote Examples Ford: Mar 09 - Oct 09 - Jun 10 - Oct 10 - Mar 13 - Oct 14 - Oct 17 - Apr 18 - Oct 18 - Apr 19 - Apr 20 - Apr 21 - Apr 22 - Apr 23 - Apr 24 - Oct 24 Presentation: Video - Audio Muni Bonds - Poway: Feb 09 - Jun 10 - Oct 10 - Mar 11 - Oct 11 - Mar 12 - Oct 12 - Mar 15 - Oct 18 - Apr 19 - Apr 20 - Apr 21 - Oct 21 - Apr 22 - Apr 23 - Apr 24 - Oct 24 Presentation: Video - Audio More Muni Bonds Quote Examples: Gardena (Mar 2009) - Puerto Rico (Mar 2012) - City of Carlsbad (Dec 2011) - Medical Establishments (Mar 2015) - Lake Elsinore and Washington Township, July 2016 Advanta: May 09 - Video - Audio - Sure 'nuff! They went under! Yet another example of the eternal tug o' war between risk and return Bearer Bond Images From a time when bonds had "coupons" attached to them. Can anyone predict future interest rates? Doesn't seem so. Online Audio Lectures Chapter 8 - Lecture 1 - Slides 1 to 24 Introduction to Bonds, Bonds & Interest Rates Chapter 8 - Lecture 2 - Slides 25 to 42 Types of Bonds, Bond Ratings Online Audio/Video Lectures Chapter 8 - Lecture 1 - Slides 1 to 24 Introduction to Bonds, Bonds & Interest Rates Chapter 8 - Lecture 2 - Slides 25 to 42 Types of Bonds, Bond Ratings Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 8 - Lecture 1 - Slides 1 to 24 Introduction to Bonds, Bonds & Interest Rates Chapter 8 - Lecture 2 - Slides 25 to 42 Types of Bonds, Bond Ratings |
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Bond Yields and Valuations |
Chapter 9: Bond Yields and Valuations Chapter 9 in textbook on LibreTexts.org Presentation file Study Guide Bond Valuation Assignment - Commentary Bond Valuation Worksheet #1 - Commentary - Answer Key Bond Valuation Worksheet #2 - Commentary - Answer Key Bond Valuation Worksheet #3 - Commentary - Answer Key Bond Valuation Formulas Present Value Tables Bond Calculator Spreadsheet - Video - Audio (Lecture 2) The Bond Yield Curve and Composite Rates Bond Yield Curve from GuruFocus.com Treasury bonds yield curve Bond Yield Curve from Wall Street Journal Also uses Treasury bonds to show yield curve Composite Bonds Rates from Fidelity Online Audio Lectures Chapter 9 - Lecture 1 - Slides 1 to 19 Bond Yield Calculations Chapter 9 - Lecture 2 - Slides 20 to 41 The Yield Curve, Bond Valuation Online Audio/Video Lectures Chapter 9 - Lecture 1 - Slides 1 to 19 Bond Yield Calculations Chapter 9 - Lecture 2 - Slides 20 to 41 The Yield Curve, Bond Valuation Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 9 - Lecture 1 - Slides 1 to 19 Bond Yield Calculations Chapter 9 - Lecture 2 - Slides 20 to 41 The Yield Curve, Bond Valuation |
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Chapter 10: Hybrid Securities: Preferred Stocks and Convertible Securities |
Chapter 10: Hybrid Securities: Preferred Stocks and Convertible Securities Chapter 10 in textbook on LibreTexts.org Presentation file Study Guide Convertible Securities Assignment - Commentary Convertible Securities Worksheet - Commentary - Answer Key The Three Questions on Exam #4 about Hybrid Securities Preferred Stock Example -- Innovative Industrial Properties Common Stock (IIPR) - Preferred Stock (IIPR-A) - Investor FAQ on their website Online Audio Lectures Chapter 10 - Lecture 1 - Slides 1 to 16 Preferred Stock & Convertible Securities Online Audio/Video Lectures Chapter 10 - Lecture 1 - Slides 1 to 16 Preferred Stock & Convertible Securities Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 10 - Lecture 1 - Slides 1 to 16 Preferred Stock & Convertible Securities |
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Part 4: Portfolio |
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Portfolio and Asset Diversification Allocation |
Chapter 11: Portfolio Diversification and Asset Allocation Chapter 11 in textbook on LibreTexts.org Presentation file Study Guide Assignment - Commentary Investing in Retirement -- The Distribution Phase Bonds in Retirement versus Stocks in Retirement versus Stocks and Bonds in Retirement versus Balanced in Retirement Presentation: Video - Audio Typical "Glide Paths" for Target Retirement Date Mutual Funds Vanguard Capital Group Capital now has a slick interactive glide path. T. Rowe Price T. Rowe Price has "enhanced" their glide path. Fidelity Thrift Savings Plan Taken from a resource other than the TSP.gov website. (Scroll down.) The Argument for a Balanced Approach - As Fidelity Investments Sees It Why Diversification Matters - Video - Audio Fidelity's take on diversification The Standard and Poors 500 Index Revisited The S&P 500 versus the S&P 50? Is the S&P 500 really a broadly-based, well-diversified index when 56% of the return comes from 50 companies? Bonus Assignment: Index Funds and Diversification - Commentary - Anybody wanna' go back and redo (or do) the Bonus Assignment for chapter 2? Very illuminating! Online Audio Lectures Chapter 11 - Lecture 1 - Slides 1 to 27 Diversification and Risky Asset Allocation Online Audio/Video Lectures Chapter 11 - Lecture 1 - Slides 1 to 27 Diversification and Risky Asset Allocation Online Audio/Video Lectures on YouTube (Closed captioning available) Chapter 11 - Lecture 1 - Slides 1 to 27 Diversification and Risky Asset Allocation |
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