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BUS-123 - Introduction to Investments - Spring 2025
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 Fall 2024 Class Website

To enroll in our class, visit Southwestern College Self-Service.
Choose "Spring 2025" 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?)

Visitors, All Are Welcome!

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!

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!



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.

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

Exam #1
BUS-123-501 Online
First 8 Weeks
Chapters 1 and 2
 Chapter 1: Introduction, Overview, Risk versus Return, Sort-term Investments
 Chapter 2: Mutual Funds: Investments for the Masses
Thursday, February 13th, to Sunday, February 16th, at 11:59 pm 


Announcements for First 8-Week Session, BUS-123-501

Announcements  (Announcements also available in Canvas)

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

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  Ah, it's what yer lookin' at right now.
Office Hours -- We are here to help you!
Zoom Room Online Office  We will have at least twelve online Zoom office hours this semester.
BUS-123-501 -- First 8-Week Class -- Thursday nights from 7:00 pm to 7:55 pm
     Thursday, February 6th, 7:00 to 7:55 pm (first week of semester)
     Thursday, February 13th, 7:00 to 7:55 pm (coincide with exam #1)
     Thursday, February 27th, 7:00 to 7:55 pm (coincide with exam #2)
     Thursday, March 6th, 7:00 to 7:55 pm (coincide with exam #3)
     Thursday, March 20th, 7:00 to 7:55 pm (coincide with exam #4)
     Thursday, March 27th, 7:00 to 7:55 pm (coincide with final exam)
BUS-123-502 -- Second 8-Week Class -- Thursday nights from 7:00 pm to 7:55 pm
     Thursday, April 10th, 7:00 to 7:55 pm (first week of semester)
     Thursday, April 17th, 7:00 to 7:55 pm (coincide with exam #1)
     Thursday, May 1st, 7:00 to 7:55 pm (coincide with exam #2)
     Thursday, May 8th, 7:00 to 7:55 pm (coincide with exam #3)
     Thursday, May 22nd, 7:00 to 7:55 pm (coincide with exam #4)
     Thursday, May 29th, 7:00 to 7:55 pm (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.

Chapter 1:
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, December 2024
   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.
   Wise Advice from Mike Gitlin, President & CEO, Capital Group / American Funds - Full interview
   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
Short-term Securities Examples: Video - Audio
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
  2024 Example: Annual Report (new format) - Portfolio Holdings
  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
Investopedia: An Introduction to Commercial Paper
Why Brokered CD's Offer Higher Rates  Investopedia's discussion of Brokered Certificates of Deposit
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

Mutual Funds:
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 -    Market Concentration in 5 Charts - Summer 2023
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: 91 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 Using Simulated Index Funds
   $500,000 paying a yearly 1.0% annual fee - 20 years
   $500,000 paying a yearly 1.0% 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 #5)
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

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)


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