Unit 1 Lesson Three: Beating the Market
Presentation
•
Business
•
8th - 12th Grade
•
Easy
Nicholas Murja
Used 6+ times
FREE Resource
8 Slides • 9 Questions
1
Lesson Three: Beating the Market
By Nicholas Murja
2
Write 1-10 on a piece of paper and then predict what you will flip each time.
Next, flip your coin 10 times and track the times you were correct.
Is there strategy to flipping a coin?
3
Open Ended
How many did you get correct?
4
Who won?
5
Poll
Why do you think the individual won?
Random Chance
Strategy
6
The Analogy
What if the person who predicted the most flips correct had a special method and strategy for guessing? What if it really wasn't a guess at all? Would you be curious about the method?
This analogy was put forward by the single most successful investor, Warren Buffet in an article about super investors.
7
We are learning an investment strategy called "Value Investing." The goal of value investing is to buy every $1 for $.50. To find a $10 bill that someone is willing to sell for $5.
Many believe that this isn't true. We are going to look at the thought process behind the hypothesis that says we can't buy stocks at a discount and the thought behind value investing. Then you can judge for yourself.
8
Is it possible for someone to "beat the marker?"
The Efficient Market Hypothesis
9
Open Ended
What does the efficient market hypothesis state?
10
There are many types of investing strategies, but we will learn about Value Investing because that's what Warren Buffet uses.
Value Investing
11
Open Ended
What is one of the principles value investors follow?
12
Multiple Choice
It's impossible to beat the market because everyone is working off the same information.
The efficient market hypothsis
Value Investing
13
Multiple Choice
Because people buy and sell stocks emotionally or with a herd mentality, it's possible to find stocks for cheaper that what they are worth which allows for stocks to be purchased at a lower price than the actual value.
The efficient market hypothsis
Value Investing
14
Multiple Choice
Scenario 1: Liz has been interested in investing in the stock market for a long time. She finally decides to invest $5000. She carefully researches a cheese company’s value, including their debt and their profits. She determines the company’s stock is underpriced compared to the value of the company so she invests.
Value Investor
Efficient Market Hypotheis
15
Multiple Choice
Scenario 2: Alex is not very concerned with the value of the companies when he makes his stock picks. He believes the markets will rise over time so he invests in a basket of many stocks or an ETF.
Value Investor
Efficient Market Hypotheis
16
Multiple Choice
Scenario 3: Jack carefully researched his investment options and invested a significant amount of money in a media company. The stock price of the company has been volatile for the past year and many shareholders sold their stock. However, Jack was patient and left his investment alone and is now enjoying seeing a steady rise in the value of his shares.
Value Investor
Efficient Market Hypotheis
17
Let's take a look at this article by Buffet to learn how superinvestor's "beat the market"
Lesson Three: Beating the Market
By Nicholas Murja
Show answer
Auto Play
Slide 1 / 17
SLIDE
Similar Resources on Wayground
12 questions
Rocks and The Rock Cycle
Presentation
•
9th - 12th Grade
12 questions
RL.9-10.1 / RI.9-10.1
Presentation
•
9th - 12th Grade
12 questions
Types of Chemical Equations
Presentation
•
9th - 12th Grade
11 questions
Plural Nouns Ending in Y
Presentation
•
9th - 12th Grade
12 questions
Description in Writing
Presentation
•
8th - 12th Grade
12 questions
Anne Frank Character Change
Presentation
•
6th - 9th Grade
14 questions
Purchasing
Presentation
•
9th - 12th Grade
12 questions
Rotation
Presentation
•
8th - 11th Grade
Popular Resources on Wayground
10 questions
HCS SCI 03 Summer School Review 4
Quiz
•
3rd Grade
11 questions
HSMS - Standard Response Protocol
Quiz
•
6th - 8th Grade
16 questions
1.1-1.2 Quiz Review
Quiz
•
9th - 12th Grade
12 questions
Exponent Expressions
Quiz
•
6th Grade
20 questions
Adding and Subtracting Integers
Quiz
•
6th - 7th Grade
11 questions
Northeast States
Quiz
•
3rd - 4th Grade
10 questions
Characterization
Quiz
•
3rd - 7th Grade
10 questions
Common Denominators
Quiz
•
5th Grade