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Question: What Happened To Snapchat (The Investment)?

Investors loved the IPO (shares shot up from IPO price of $17 to $29 at one point on the first day of trading) but when it came time to announce their first quarterly results as a public company, well….I will let the chart from YahooFinance do the talking:

Ben Carlson, a blogger, titled a recent blog post on this disappointment: A Good Lesson For Millennial Investors. So, what did it teach them?

Interactive: Which Tech Giant Would You Drop?

Here’s a fun and quick interactive from NY Times to get your students thinking about the pervasiveness of technology companies in their lives. Students are forced to rank order the importance of the top five tech companies in their lives by selecting the order by which they would give them up (if forced by an evil monarch:) The five companies: Alphabet (Google is one of their subsidiaries), Amazon, Apple, Facebook and Microsoft (interesting that three start with the letter “A”).

Questions:

Question: How Much Cash Does Apple Have in the Bank?

Answer (from WSJ; subscription): About $250 billion!

A truly amazing stat that had to be shared. Here’s how it has grown over time:

By |May 2nd, 2017|Article, Current Events, Investing, Question of the Day, Stocks|

NGPF Podcast: Tim Talks To Prof. Meir Statman About Behavioral Finance

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I enjoyed my recent conversation with Finance professor Meir Statman of Santa Clara University, which is just down the street from the NGPF offices. Meir conducted some of the earliest research in what we now know as behavioral finance. He discusses his book, Finance for Normal People, and shares his insights about how investing should be taught in school (spoiler alert: Keep It Simple!). He also describes his approach to playing the stock market game and why fees matter so much when comparing investment options. You will know more about investing after you listen to Prof. Statman. Enjoy!
Details:

Think You Can Pick A Mutual Fund That Can Beat the Market? Think Again And Buy An Index Fund Instead!

Based on this recently analysis, go ahead and buy an index fund. Over any recent time period (1, 3, 5, 10 and 15 years) you would have trounced actively managed funds. Of course, “past performance is no guarantee of future results,” however, when you see the persistence of index fund success over short, medium and long-term periods, and the primary reason for it (they carry lower fees), I would put my money (and do) on this trend continuing.

Chart from SPIVA U.S. Scorecard Report (only first four lines, full analysis available by clicking on link):

Question: What Is Most Valuable Car Company In the United States?

a. General Motors

b. Ford

c. Tesla

Resource Lists for Financial Educators (courtesy of Barbara O’Neill of Rutgers Cooperative Extension)

What does a distinguished professor do during her sabbatical? Curate personal finance resources, of course! In this blog post, Barbara O’Neill shares the fruits of her hundreds of hours of labor in putting together three awesome resource lists (see bottom of post for links to her lists), including what what she considered the “best of the best” from the NGPF library. As she describes below, the purpose of her odyssey was to replenish her “well” of creative learning activities. I hope that your “well” overflows as you find resources that will work in your classroom. Thank you Barbara for this tremendous gift to the community! Your commitment and dedication to improving financial literacy in this country inspires us.

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|