Posted on 03/01/2019 5:24:55 PM PST by TermLimits4All
Buffett strategy. Good idea.
Dog of the Dow.
Buy the dividend.
Thinking back I think it was placing a pencil on the stock page of the Detroit Free Press is how I chose. I think that’s a possibility they’d enjoy. Research them afterwards.
Buy whatever Soros and Hellary bought today.
Which is more than I learned. I had to play catch up in my life and it sure sacrificed our lifestyle later in our 30’s and early 40’s.
Thank you.
Pick stocks that have paid dividends for years, are leaders in their industries, and are in sectors that have a high cost of entry. Diversify and throw in one or two stocks from hot sectors that might show some quick growth. Provably won’t win the school contest, but would be a smart way to invest for the long hall.
The teacher assigned the numbers. My guess is with 24 kids in 2 classes, that’s 480 stocks he will be able to evaluate and have fun with/make or lose money on over the summer break. Lol.
Good one. Funny. I’ll let my middle schoolers know. Doubt there’s too much emphasis other than the cyclical nature of the markets.
I’m not an expert, but I think that one of the most reliable methods is to look at what insiders are buying. It is said that insiders sell for a wide variety of reasons. Although it could be that they know something bad about the stock, it could also be because they want to pay for a vacation or hospital bills or a cabin in the mountains. However, it is also said that they only buy for one reason: They think that the stock is going to rise in value.
In other stocks, try to buy the dips (when everyone is scared) and sell the bumps (when everyone is euphoric).
Don’t risk too much in risky stocks.
If you want to take a portion of the the portfolio on higher risk ventures, look for a possibly undervalued, low profile stock that has a potentially good future. (But it’s kind of like looking for hen’s teeth.) My choice in this category is AMYZF (American Manganese). It has a patent for a battery recycling process that has shown 100% recovery of battery materials, including such things as cobalt, manganese, and lithium. Cobalt is especially critical, since most of it comes from one country: the strife-filled Republic of the Congo. Also, electric cars are going to be a big thing in the next few years, and there won’t be enough raw materials available in mining for the batteries. American Manganese, with its patented process, could fill an extremely important role. It is currently operating a pilot plant. A commercial plant will go online later this year. It’s stock price right now is around 11 cents a share.
My two cents.
Bought Lowes because I never got out if the store less than $100 and the parking lot was always full. It has done very well for me.
> Buffett strategy. Good idea. <
Sigh. As usual Buffett gets all the credit. It was back in 1950, I believe. Warren was going to sink all his money into Chinese cattle futures, mainly because of a tip he got at a bar.
“No Warren,” I told him sternly, “only invest in things you know, and like.” And the rest is history.
That’s what I said but the lesson is the ups and downs and knowing how to track it. My kids laughed when I said they’re phones can do that automatically for them. They’ll have the data the teacher wants, I want them to learn more than the lesson. This is great knowledge for life.
How is your child being graded on this endeavor, or what is the objective? Total return? Minimum volatility? Coherence of the thought process? Recordkeeping? The “social justice” of the firms chosen, eg points for Nike, demerits for Sturm, Ruger? Can you change stocks during the contest? Or something else?
Once the objective function is identified, then you can solve for it. For example, if it is a total return contest, then you may choose to swing for the fences - a basket of high growth, but high volatility stocks may win the day. Sort of like Dave Kingman at bat....you’ll either have towering drives to deep right field or many strike outs. However on average this approach probably wins the contest especially since you only have about 5 months to win.
Or if this is all about demonstrating a thoughtful process, then you may opt for a Ted Williams approach...compile a pool of consistently-performing stocks over a long run with low volatility and pick ten at random.
I am always thinking there is some hidden agenda in school so you may want to steer clear of firms that get people riled up like Amazon, Starbucks, Nike, ExxonMobile, Sturm, Ruger erc. Or maybe you WANT to load up on Deplorable firms and short snowflake firms.
Regardless of the objective, this is an encouraging sign. Clearly someone at the NEA failed to quash all free thinking. Good luck and play to win the game.
Avoid SNCAF (NASDAQ and TSE) Aat all costs! Turd-owe’s attempts to influence/intimidate our former AG, over not criminally charging SNC-Lavalin will hopefully result in the little trust fund baby receiving accommodations courtesy of Her Majesty, at the greybar hotel for up to ten years. This would also resulting SNCAF being cut out of government contracts for ten years. Share price would crash.
the parking lot was always full. It has done very well for me.
Have them make picks, and throw the darts. Compare the results when finished.
Pick the ten stocks most closely tied to the Deep State. :)
The main classifications for stock types are Value, Growth and Income. You may want them to pick a few that fall in each category so they will gain more understanding.
A good screening tool is at Zacks:
https://www.zacks.com/screening/
VALUE stocks are usually priced cheap compared to their earnings which is usually indicated by PE ratio (Price to earnings ratio) and/or PEG ratio (price to earnings growth ratio, note that earnings growth is an analyst estimate). PE ratios below 10 t0 12 could be considered value stocks. PEG ratios of 1 shows that projected growth is already priced in while below 1 shows not fully priced in and over 1 shows it is expensive compared to earnings one year out.
GROWTH stocks are expected to grow in the future so PE ratios are often much higher than 12 because future growth is priced in. You can look at PEG ratio to ee if the future growth is fully priced in.
INCOME stocks pay above average dividends. This makes the prices more stable in volatile markets. Here you would still look at PE ratio and PRG ratio, but also percentage dividend rate. The higher the dividend gthe better as long as the PE and PEG are not too far out of line.
Much of this is based on analyst earnings estimates which are often very wrong.
Other things to look at are the alpha and beta of a stock to see how it reacts compared to the overall market movement.
Seriously check out ACOPF and FSUTX
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