Investing

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Articles: The History of the Department Store and the Modern Day Department Store Destroyer

Two articles that I thought your students might enjoy since shopping seems top of mind for many teens. I think these would be particularly good as a supplement for your investing or entrepreneurship lessons. One article describes the rise of the department store (Inventing the Department Store in Barrons; about 5 minutes reading) and the other describes the modern day Leviathan that is destroying department stores and other competitors too (Amazon: Primed from the Economist (three articles free per week); about 15 minutes reading).

A Q&A follows focused on the key takeaways from the readings.

Some highlights from the Barrons article:

What led to the first department stores being opened in London? 

As affluence increased in the 18th century and the Industrial Revolution made more goods available, shopping began to evolve into what would become the department store. The first ones began by catering to the most common type of shoppers, women. The first real department store, Harding, Howell & Cos.’ Grand Fashionable Magazine, opened in London in 1796. Its four departments carried furs, jewelry, dresses, and hats, and accessories such as lace and gloves.

Who brought concept to US? Alexander Stewart

What was his insight that led to their popularity? 

History Lesson: The Dow Jones Industrial Average Since 1896 In One Chart

Great infographic showing the price action for the Dow Jones Industrial Average over the past 130 years with historical milestones along the way (click on the graphic to enlarge it):

By |March 26th, 2017|Chart of the Week, Index Funds, Investing, Math, Research, Stocks|

Investing: What Can Investors Learn from Warren Buffett’s 2016 Letter to Shareholders?

I heard a great conversation today with Roger Lowenstein, former WSJ columnist and Author of Buffett: The Making of An American Capitalist, America’s Bank and When Genius Failed, on the Masters in Business podcast. When asked about how he learned about investing, he mentioned how much he had learned from reading Warren Buffett’s Annual Letter to Shareholders. I thought I would dissect his 2016 Letter and share his often folksy advice in an abbreviated format (the letter is 29 pages long).

I thought you might find these insights useful:

  • Two things to keep in mind during market declines which captures the psychology of investing (not his use of the phrase “sit for an extended period”):

Spanish Translations for Saving & Investing

Did you know that one of our most popular projects at the moment is Ravioli Den (technically called Joining the Market)? Did you know it is now available in Spanish (Unirse al mercado de valores)? NGPF is in the process of translating some of our best and most-used activities and projects into Spanish, so that teachers with English Language Learners in their classes can further support their students. This month we’re releasing 10 translations on the topics of Saving and Investing.

You can view our growing list of 30 translations here in our Spanish Translations Directory. Is there a topic you’d like us to tackle next? Email Jessica to have your favorite activity or project placed on the list. And to receive an automated email every time new resources are added, join our Spanish Translations mailing list.

Another helpful hint: You’ll know a resource is available in Spanish when you see an (Sp) after its title on our website. ¡Que bueno!

Spanish screenshot

By |March 19th, 2017|Activities, Investing, Savings|

Spreadsheet Math: Two Investments Walk Into A Classroom…

Ok, not the best title but let’s run with it. Let’s start with a question:

You have a choice between two investments of $100,000:

  • Investment #1: Earns a consistent 8% return every year (put aside the fact that an investment like this doesn’t exist at the current time; it’s been a while since you could buy a 30 year Treasury Bond with that kind of return).
  • Investment #2: Has an average return of 8% per year but has “lumpier returns” aka it has more volatile returns but the returns each year are in the top 10% of fund returns. Some years it is up, some years it is down, but overall it averages the same 8% return as Investment #1.

Which investment has a higher balance at the end of the 20 year period?

Web Quest: How Do I Buy A Stock (Or Better Yet, An Index Fund)?

A teacher at our recent FinCamp reminded me that we should not forget about the importance of the mechanics of personal finance transactions. What good is teaching students about the importance of investing if they don’t know how to go about setting up an account to buy/sell investments. While we have a activities on how to select a credit card and a bank account, we don’t answer the basic question that many young investors have which is “How do I buy a stock?”

Rather than answer this question for them, have students do their own online research to discover:

Top NGPF Podcasts

Looking for a great opportunity to deepen your knowledge on a topic that has been vexing you for weeks, months or maybe even years? Well, the NGPF podcast is a great place to turn. I interview experts including educators, NY Times bestselling authors, columnists at leading newspapers, researchers and academics. I thought I would share with you our top 10 podcasts over the past 12 months, based on data from Soundcloud:

By |March 14th, 2017|Credit Cards, Credit Reports, Credit Scores, Investing, Podcasts|

Videos: What’s New In Investing?

  • Warren Buffett’s Million Dollar Bet: Who’s Winning (from MarketWatch)?
    • What’s the bet?
    • What’s a hedge fund? What’s an index fund?
    • Who’s winning? Why?
    • Why should this matter to you as a regular investor? What’s the lesson?
  • Fee war breaks out on commissions to trade stocks (from CNBC):
    • How much are brokerage fees going down? Is this good news for investors?
    • Why do you think the online brokerage stocks are falling with this news?
    • Do you think investors will change brokers based on these cost reductions?