SUCCESSFUL
INVESTOR
By Greg Fisher
California Academy of Math & Science
5 Reasons for Doing It:
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The content covers many of
the state economic content
standards.
Students gain firsthand
knowledge of
entrepreneurship.
Students discover in depth
the world of financial
investments.
It is real world, as students
transcend their classroom
and go into their community
and beyond.
Economics comes alive.
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Economic Content
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Areas
Market Economy
Personal Finance
Financial Markets
Investment Process
Entrepreneurship
Capital Formation
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Concepts
Microeconomics
business organizations,
opportunity costs, marginal
analysis, market pricing, market
structures, cost analysis,
supply/demand
Macroeconomics
investment, savings, stock
market, inflation, unemployment,
business cycle, capacity output,
economic growth, economic
indicators, venture capital,
business plan, investment
portfolio, liquidity
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Overview of the Project
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Questions on Investments with
Individual Portfolio
Time to Invest (Stock Market)
Entrepreneurship Time
The Business Convention
Debriefing
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Investment Questions &
Individual Investment Portfolio
Students are expected
to gain information on
a wide range of
investment options.
Students acquire
knowledge through
individual and group
research.
Students synthesize
information that culminates in an individual
investment portfolio.
Teacher uses
lectures, Microsoft
PowerPoint presentations, handouts and activities,
computer lab, and
guest speakers
to organize and
present content.
Teacher demonstrates how to
create an investment portfolio
through explanation and examples.
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Categories of Investment Questions
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Business Cycle
Investment Objectives
Portfolio
Mutual Funds
Compounding Money
Annuity
Stock Market
Bonds
Money Market Funds
International & Global Mutual Funds
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Risk Management
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Performance Benchmark
Beta
Volatility
Return/Risk Ratio >
VAR (Value at Risk)
Hedging
Single-Trade Risk Management
Portfolio Risk Management
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Different types of investments have
different levels of risk and return
potential.
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Individual Investment Portfolio
OBJECTIVES
(pie chart &
description)
TIME & RISK
TOLERANCE
Growth
 Growth and Income
 Current Income &
Inflation Protection
I’ll need my investment
in
 10 years or more
 5 to 10 years
 5 years or less
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TYPES OF
INVESTMENTS
(pie chart &
description)
Equity
 Balanced
(stocks and bonds)
 Bonds
 Money market
 Fixed accounts
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The risk level will be
 Conservative
 Moderate
 Aggressive
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
TIME TO INVEST
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
STOCK MARKET SIMULATION
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Step 1 : Students are introduced to the stock market
through various activities:
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Read articles “What Is a Stock?”
Review the steps in the execution of a trade using a flow
chart
Computer-lab activity Team Scavenger Hunt
Wall Street Journal class set on how to read stocks
Video How the Stock Market Works
Field trip to local mall to research familiar companies
Microsoft PowerPoint presentation on the stock market
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
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Step 2: Students are given $100,000 and asked to invest it in the
following stock markets:
 New York Stock Exchange
 American Stock Exchange
 Nasdaq
All students buy 4 or 5 stocks on the same day and fill out.
Teacher selects stocks randomly (using darts).
Step 3: Students use a Stock Market Tracking Sheet to track their
stocks.
Step 4: All students dump (sell) their stocks on the same day
(after a 3- or 4-month period).
Winner is determined by seeing who has generated the most profit
beyond the original $100,000.
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Activities for Stock Market
Simulation
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Readings
Flow Chart of a Trade
Wall Street Journal
Video How the Stock
Market Works
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Field Trip to a Mall and
Pacific Stock Exchange
Computer-Lab
Scavenger Hunt
Microsoft PowerPoint
Presentation
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
The Simulation
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Students create a
diversified stock market
portfolio and track their
stocks once a week for the
duration of the simulation.
The teacher brings in a dart
and a newspaper showing
stocks and selects his or
her portfolio by throwing
the dart at the paper.
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Stock Charts
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Line Chart
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Bar Chart
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California
Stock Charts, continued
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Candlestick Chart
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Reference Charts
© 2008 Greg Fisher, California Academy of Math and Science, Carson, California