Investment Project
This 10-12 week project involves investing a “mock” $100,000 in a portfolio
of at least 5 different stocks (maximum $20,000 in any one stock); there is
no maximum. Students will acquire stock “ideas” from any source, except
from other students. Then, students will research their ideas, invest, monitor
and adjust? their portfolio for the duration of the project, It is the specific
intent of this project that students not only enjoy the satisfaction of reward
for bard work and the thrill of investment success, but also the frustrations of
ignorance, confusion, lack of confidence, distrust and the interplay of greed
and fear. It is sincerely believed that investment losses will contribute more
to understanding and long-term success in the financial world than
immediate gains. Suffer well!
The broadest goal of this project is that students will learn a bit, however
modest, about investing. I hope you learn nothing, or at most very little,
about speculating. While of course you may sell stocks and buy others as
goals are reached or decisions change, I do not want to see active buying and
selling (daily) in pursuit of trading gains,
The Investment Project “Report,” due approximately 3 weeks before the
semester ends, will include the following:
Minimum 1-page (12 font, double-spaced, 1-inch margins, 12-font title)
analysis* on each of $ stocks that you are convinced would be good,
investments, (not why a stock was a good investment) and;
imum 1-page (same parameters) analysis* on each of 2 stocks in which
you would not invest, (not why a stock was not a good investment) and;
* Analysis must include financial information on the company (as
opposed to the stock). Such information might include sales, sales
growth (quarterly, yearly, eic.), market share, earnings, earnings
growth, profit margins, costs (as 2 % of assets, sales, etc.), etc. Other
information, such as new products or processes, new markets, current
market price, or a change in management can be critical to successfal
investment decisions.