Couple of questions to answer today--answer them with the following format.....1.) 2.) 3.) so we know your answers match up with the questions and answer in complete sentences.
1.) Explain the comment in the book that "Risk decreases with time"
2.) Think about our stock market competition and then list the one stock that you have the most confidence in. If you went away from diversification then what stock would you put all your money into? (BTW-we all know that this is not wise to do, but pick one anyway)
and then...........Explain/Justify why you picked the company that you did--try to convince us that your stock is the best!!!!
3.) In the future, do you see yourself buying stocks or saving in a bank account? Explain your choice
4.) Give an example of the Rule of 72---"The Michael Jordan of financial concepts".....show us you have an understanding of how it works....give an example.
5.) Would you encourage your kids (future!) to get involved in stocks?
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1) I think it decreases over time because over time you will have money built up and it will be less affected by changes in stocks.
ReplyDelete2)I have the most confidence in my Netflix stocks. They have the most gain and seem to be doing the best of my three stocks. I would probably put all my money into that stock.
3)Saving in a bank account. The stock market seems to risky to me. I would like to know for sure that my money wasn't going anywhere.
4)I can't really think of an example but the rule of 72 pretty much just states that the higher your interest rate is the faster the money will double.
5)I would tell them about it, so they would know about it and have it as an option. I wouldn't encourage or discourage it.
1.) the longer you leave the stocks the less risks you have of selling them to early
ReplyDelete2.)Cabelas has always been on the rise so i would go with that.
3.)I would have a bank acount because that is a fixed rate, but stocks can crash and i like to know my money is growing not shrinking
4.)All little kids say MJ is the best athelete of all time so is interest
5.)No because there are to many risks involved in the stock market.
1) over time you will make more money so the risk decreases .
ReplyDelete2) walmart - because it is doing well .. And there are walmarts all over the world .
3)I might invest a little into stocks
4) That kids think that he was the greatest player . THey use him as the compound interest .
5)yes ..
1. If you have the patience to wait through the ups and downs of your stock then you will come out ahead. It all matters on if you can let time do its work
ReplyDelete2. I choose netflix because ever since i bought this company it has been up and in positive percentage. It is starting to over throw other companys such as blockbuster and movie gallery it is growing in society
3.probably saving in a bank account because i just think buying a stock would be difficult and time consuming and bank accounts are much more easier
4. it is a quick and easy way to show you that how the estimate of money can grow quickly in an investment
5. i would probably have my kids save in bank accounts instead of buying stocks
1. over time the risk of lose goes down because money grows over time
ReplyDelete2.BP they have a big problem that everyone knows about and there stocks are down and they can only go up
3. to have my money grow over time
4.stocks
5.ya i would
1.) It means the ability to wait things out will help you over time. If you wait through the ups and the downs, eventually you will come out ahead.
ReplyDelete2.) I would be comfortable investing in John Deere. It seems to be pretty stable and it has the highest percent gain. It seems to be like the best investment out of mine.
3.) I do see myself maybe investing in a few of the little stocks, but never being one of those big time dealers. I just don't think I'm that much of a risk taker.
4.) It's the concept of compound interest. It shows how quickly you can double your money and how to do it. You can double your money by being able to wait the ups and downs out. If you can keep your money invested, you will eventually come out with more than you put in. The interest will help you.
5.) I would just tell them that if they want to take the risks and invest money to go ahead and do it. It is up to them. Its just a guessing game when it comes to stocks. You never know how the market is going to be or end up.
1.) The longer you wait, the less of a risk you'll have.
ReplyDelete2.) I would go with Bed, Bath, and Beyond Inc because it seems that every time I look it up on the stock market, it seems to be thriving.
3.) Bank account, I don't fully understand the stock market and I don't know if i'd completely agree with it. I don't like taking chances.
4.) The interest rate or return divided into 72= approximately the number of years it takes money to double. Ex: At a 6% annual compound rate, it takes 12 years.
5.) I would not encourage my children to get involved with stocks. Kids work hard for their money, and they need to know with the economy as bad as it is/was, it's easy for your money to go down the drain. It must be used wisely and not take the chance.
1. With time you will have made money hopefully enough to where if the market does take a dive there will still be gain.
ReplyDelete2.Mcdonalds has been fairly steady for me.
3.Yes its a wise place to put some money and play with.
4.Compound interest is the best like Jordan the best athlete.
5.Yes putting money in at an early age would be a wise choice for a lot of gain.
1. The market goes up and down all the time, so the longer you wait the longer the risk. You could make a good profit by this.
ReplyDelete2. The company I have the most confidence in now is Netflix. It's gone up a lot since I've bought it, and I think it will go up a lot. It's a really big thing now, and a lot of people are starting to use it.
3. I see myself saving my money in a bank account so there isn't any way to loose it. Buying stocks can be risking, and you can loose money by investing.
4. The rule of 72 is basically making your money double. If there is a 6% interest rate, it would take 12 years for the money to double.
5. I would like to tell them about stocks so they can make their own decisions about the subject. I would most likely encourage them to put it in a bank account so they can save it.
1)The longer you keep your stocks the more likely it is to reach its annual rate.
ReplyDelete2)Steel
3)Yes i do, because I want to make money and investing will get me money someday when I am old.
4)With a 6% interest rate it would take 12 years for money to double but with a 12% interest rate it will only take 6 years too double.
5)Ya, i would have them invest when they are really young.
1.) If you wait through the ups and downs you will probably end up ahead.
ReplyDelete2.) Disney, it is doing very good for me and I wish I would have bought more of it.
3.) I don't think I will buy stocks in the future. I am not very good at it so I don't think I would be successful.
4.) All the little kids say that MJ is the best athlete and so is compound interest.
5.) No, I would not encourage them to get involved in stocks.
1.) It means that when you wait out the stock to, it will end up better in the end. It will build a strong foundation that will keep growing and getting stronger.
ReplyDelete2.) So far Cabela's has not let me done it has been consistently up and with all the different hunting, fishing, and holiday seasons it should continue to be strong!
3.) I can see myself saving in bank accounts because I'm not in to the whole stock thing. I still find it too risky and I don't have a lot of money to put away in the first place.
4.) The rule is based on compound interest.The higher interest rate the less time it will take to double. You simply have to compound with a higher percent.
5.) Well I would teach them about it but I would let them save their money however they want to either in a bank or invest it.
1. If you can wait out you will get a good foundation and make more.
ReplyDelete2. I put a lot of my money into John Deere because its a big company and there is a lot of companies all over.
3. I will save money in a bank account so i have some were to keep my money. But i don't know if i am going to buy stocks yet of not.
4. You divid the interest rate into 72 equals the number of years for money to double. example: 14% rate
72/ 14%
5. I would want to them to know about it, then its up to them if they want to invest in stocks or not.
1. Over time the risk of losing money decreases.
ReplyDelete2. Google has kept me from being negative a lot.
3. I would see myself using a bank account because there is risks in the stock market and I want to know where my money is and how much I have.
4. He used Michael Jordan as an example of compound interest.
5. If they were interested in it and invested it well into good stocks I wouldn't discourage them from it.
1) Risk decreases with time because the longer you wait, the more money you make. You just have to wait until the stocks are back up.
ReplyDelete2) If I had to put all my money into one company I would put it into Netflix. Yesterday was the only day that they have been down, so I think they have a solid future.
3) I would rather save in a bank account. In my opinion it is safer and more reliable. It's a guarantee make money situation, compared to possibly loosing money in the stock market.
4) Someone might have a lot of money in Burger King and the interest rate is high so their stocks will double.
5)Yes, many people have had success from it.
1) "Risk Decreases With Time" I think that this is true because if you wait longer through ups and downs you will end up ahead overtime, and volatility is minimized the longer you wait.
ReplyDelete2) My best stock that I would invest all in if I had to would be google because it tends to go up day by day or do me good and I think it will work in the long run.
3) I dont know if I will buy stocks or save money in them in the future maybe after I learn a little more about them I will know, but I dont think I would know what to buy stocks in.
4) The rule of 72 is making your money double, for example if you had 8% interest rate it would take 9 years for your money to double, you take 72 divided by 8 and get 9.
5) Yes, I think it would be a good thing for them to save money and have money in the long run.
1. If you wait you can end up ahead.
ReplyDelete2.I put money into decker sports and it has helped a lot from me being last.
3.I would rather save my money in a bank account. I would not lose money this way.
4.Rule is based on compound interest
5.yes, you can have success with stock markets
1) the longer you wait, the longer its going to gain over time so you will get your money back
ReplyDelete2) My best stock is probably John Deere because it has been really good for me
3) i would like to invest in the future once i learn who to buy stocks in
4) The rule of 72 is what makes your money double. Take 72 divided by 6 and it doubles in 12 years
5) yes people had success
1.) Risk decreases in time because in the beginning you're risking alot of money to buy the stocks.. if you wait you will build money up and once the stocks are back up you'll be fine.
ReplyDelete2.) I would probably pick the Buckle because the prices are high and they rise every day.
3.) I will be saving in a bank account because you never know what will happen with the stocks. I would rather save my money instead of spending it on stocks.
4.) Its easier to show you that money can grow quickly with an investment
5.) No, I would rather them learn how to manage their money so they can save and not spend all of their money wen they think they need something.
1. The risk of losing money will go down in time because the market ussally bounces bank and goes higher. The money you put in the market earlier wil not mean as much to you.
ReplyDelete2.Ebay, people use ebay all the time and it will keep going up
3.No i will not. waste of money and time waiting for it. Econmy craches you lose it so i think i will keep my money to my self
4.The more intrest on your money the faster it can double
5.I would tell them not to. They work hard for the money so why go take the risk with it and mabe lose it all
1. Decreasing over time and having money in the end.
ReplyDelete2. Burkshire
3. Yes I do, I plan to invest a couple of different companies, to balance each other out.
4. 72/10% = 7.2 years
5. Yes, because I want them to have money when they retire, and I wan't them to learn responsibility.
1) Risk decreases with time because the longer you wait or the longer you do something the bigger or easier it gets.
ReplyDelete2)I would pick Wal-Mart because they are constently changing and it is usually for the better
3)I would probably put my money in a savings account because that way I know that I would always have my money and I wouldn't have to pay that much attention to the stocks
4) Basically what they are saying is the iterest rate will be divided into 72 which will equal the number of years for your money to double
5)I would probably not if I was in control but since I don't like that idea I would just tell them do what you think is right just don't come to me if it goes south
1. Risk decreases because the longer you keep your money in the stocks the more stable it will be. Buy and Hold. Dont sell right away.
ReplyDelete2. I would put all of my money into First Solar. It been doing pretty good for a while now so I think thats the best choice.
3. I would for sure have a savings account. I would put money into that account and build up interest.
4. Its an easy way to find out how long it will take for your money to double.
5. I would definitely let them know about it and make sure they know what goes on in stocks like the risks and the benefits. I would leave it up to them if they wanted to invest or not.
1.)Risk decreases with time because as more time passes, the less it will affect the risk of losing all of our money.
ReplyDelete2.)SOLR, because I have almost a 20% increase from when i bought it.
3.)Either one, because i need to save, and i can usually choose good companies to invest in.
4.)72x6 years=12% income
5.)Yes, because it will pay off in the future.
1. The risk decreases because with time comes more money and the more money, the less of a risk you have of losing money.
ReplyDelete2. I would pick Apple, because it has the highest percent and I always make a lot of money from it.
3. I would save in a bank account. I'm not very good at stocks and I think it's a waste of time because you will probably end up losing money, but if you put it in a bank, you won't lose it and it can still grow a little. Also you can always have that money just in case.
4. The Rule of 72 is the interest rate divided into 72 equals the number of years fro money to double. ex. 72÷6%= 12 years to double, so if you have 1,000 dollars with a 6% rate, it will take 12 years to get 2,000 dollars
5. I wouldn't say no, but I would say that its risky and you never know whats going to happen to that money. If they know what they are doing, then they should do because you can make a lot of money from it.
1) As time goes buy you get more money and its less affected by drops in the market
ReplyDelete2) I am most confident in my Cabela's stock. I chose this because Cabela's is awesome. It is my only stock that hasn't gone down.
3) Bank account because it is the safer one to do. You never know whats gonna happen in the stock market.
4) It tell you how long it will take for the amount of money to double. If you have a 6% rate you take 72/6 and it equals 12. That means it will take 12 years for the money to double.
5) I would tell them to do what they want but also tell them I wouldn't do it myself
1. The risk of losing money goes down in time because the market banlace the banks and goes much higher.
ReplyDelete2. Burger King because I eat there alot.
3. Yes because I like saving up my money for stuff I want.
4.
5. Yes and No.
1. Risk decreases over time because the longer you have your money in the more garenteed you are to make money.
ReplyDelete2. Google because the stocks can very and go up to double its price or it can drop pretty fast over all its good.
3. I would invest into stocks because your money can double or triple in shorter times if you know what stock to invest in.
4. Easyier way for you to find out how fast your money will double.
5. Yes i will because the more you invest the more you will make..
its a long time but it pays off
ReplyDelete1.) Risk decreases with age because at first when you haven't made that much its risky but when you have a stable amount of money its not a big deal if you loose or gain a little bit of money here and there.
ReplyDelete2.) DE( John Deere) is a very stable company for me I would put all my stock in it its growing and everyone will always need tractors so its a stable company.
3.)I can see myself taking advise from my grandpa who invests a lot so I will invest money when I have it
4.) the interest rate divided into 72 equals the number of years for money to double
5.) for sure
1.) stocks tend to go up so the longer you keep it the higher it should go so you dont lose money
ReplyDelete2.) i would do disny
3.) stocks maybe but a bank account very likely
4.)divide 72 by the percent of increase and you will find how long it takes to double your money. 12%=6 years to double
5.) i would definatly buy them stocks and if they wanted to know how it workes then i would show them
Econ class,
ReplyDeleteWhile I may understand some of the comments about not encouraging your kids to invest in the stock market, it would be my hope that you will have a different attitude at the end of this book. I challenge you to look at historical data of stock market returns and see if you would change you mind. I would also encourage you all to use the numbers program to calculate the Future Value(FV) of money. The spreadsheet would allow you to run "what if" scenarios comparing different average returns.
1) over time you will make more money so the risk decreases .
ReplyDelete2) gordman's cause it's my highest and it's making me the most money
3)I might invest a little into stocks
4) That kids think that he was the greatest player. They use him as the compound interest .
5)yes ..