Introduction to Investments Logo

BUS-123 - Introduction to Investments - Spring 2023
Looking Forward to a Great Semester!
Still Plenty of Room in the Class
Tell your Friends, Family Members, and Colleagues
We Gonna' Teach 'em How to Become Rich!

Southwestern Community College
Instructor: Frank Paiano - Email: fpaiano@swccd.edu

Zoom Meeting Room for Live Class Sessions
Tuesday/Thursday Mornings, 8:35 to 10 am, Pacific California Time, Room 39-105

Textbook: Introduction to Investments: A Free Manual for Building Wealth
PDF Version (>30 Megabytes) - LibreTexts.org (mobile-friendly)

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

Southwestern Investment Club
Thursdays at noon starting February 2nd, 2023
Zoom Meeting Room for Southwestern Investment Club


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 Rukeyser

Is the American republic built to withstand a malevolent president?

Same arguments as during Fascism in the 1930's and 1940's.


*** 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.



First Exam

Exam #1
BUS-123-01 Tuesdays & Thursdays
8:35 am to 10:00 am

Exam #1: Chapters 1 and 2
Chapters 1: What is an Investment?, Overview of Investment Universe, Risk versus Return, Short-term Investments
Chapters 2: Mutual Funds: Investments for the Masses
Thursday, February 23rd



Announcements

Announcements  (Announcements also available in Canvas)

Week #0 - Presemester Announcement - Video - Audio
  Pre-semester annoucement for students enrolled in face-to-face class



Chapter Presentations, Handouts, and Assignments


Part 1: Introduction including Mutual Funds


Part 1:


Syllabus:
BUS-123-01 - Audio Commentary of Class Syllabus - Long Format  Long format also in Canvas
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.
Office: 62A-104B, Office hours on campus: After class from 10:10 to 11:05 am
 There will be at least six office hours on campus. The office hours will generally be right after class but we can schedule one when it is convenient for you.
Zoom Room Virtual Office  We will have at least six online Zoom office hours this semester, typically Thursday nights from 7:00 pm to 7:55 pm.
   Dates:
     Thursday, February 2nd, 7:00 to 7:55 pm (Let's get acquainted)

Chapter 1:
Introduction,
Overview,
and
Risk versus
Return


Chapter 1 Materials - 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 - Answer Key - Commentary   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
Future Value Worksheet - Commentary - Answer Key
Future Value Tables
Visualizing the World Economy, December 2022  Source: VisualCapitalist.com - Updated annually
   The December 2021 Graph

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, 2022
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, 2022
Short-term Securities Examples: Video - Audio
  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

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
   Fidelity International weighs in on the discussion
   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.

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    The Relationship of Risk versus Return
Chapter 1 - Lecture 4 - Slides 54 to 72    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 53    The Relationship of Risk versus Return
Chapter 1 - Lecture 4 - Slides 54 to 72    Short-term Investments, A Place to Park Your Money

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    The Relationship of Risk versus Return
Chapter 1 - Lecture 4 - Slides 54 to 72    Short-term Investments, A Place to Park Your Money

Zoom Recorded Sessions (BUS-123-01)
TueThur Lecture 1 -- 31 Jan   Introduction: What is an Investment?
TueThur Lecture 2 -- 2 Feb   An Overview of the Investment Universe and the Relationshiop of Risk and Return
TueThur Lecture 3 -- 7 Feb   Short-term Investments, Chapter 1 Assignments, Class Portfolio

Chapter 2:
Mutual Funds:
Investments
for the
Masses


Chapter 2 Materials - Mutual Fund: 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 - Commentary
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: 89 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)
$500,000 paying the up-front commission - 20 years
$500,000 paying the yearly annual fee (Example: Fisher Investments 1.25% yearly fee) - 20 years
$500,000 paying the up-front commission - 25 years
$500,000 paying the yearly annual fee (Example: Fisher Investments 1.25% yearly fee) - 25 years
   Commentary: Video - Audio

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 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
Fidelity Funds Insights - Viewpoints - Ned Johnson on Wikipedia
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?!


Text Book



This is an Open Educational Resources - Zero Textbook Cost (OER-ZTC) textbook.
(Ah, that's the fancy-schmancy academic way to say that it is free to read.)

  Introduction to Investments: A Free Manual for Building Wealth
  
PDF Version (>30 Megabytes) - LibreTexts.org (mobile-friendly)

Back