Investment Report Instructions
Final Draft Submit in dropbox folder (Investment Report – Final Paper – Dropbox – Graded Event)
Check the dropbox folder or the calendar for this due date.
Part of the report will be completed by readings in the additional books for the class. Please see the following for details on these readings.
Please read the following as requirements for this report:
The Intelligent Investor: A Book of Practical Counsel (Paperback)
by Benjamin Graham (Author)
Any edition of the Intelligent Investor printed from 1986 on will work.
Specifically read chapters 1, 8, 9 and 20
The titles for the chapters we will discuss follow:
Chapter One: Investment versus Speculation
Chapter Eight: The investor and Market Fluctuations
Chapter Nine: Investing in Investment Funds
Chapter Twenty: “Margin of Safety” as the Central Concept of Investing
(Please go by the chapter titles. In some older editions of the book the chapter numbers are different.)
Jim Cramer’s Real Money: Sane Investing in an Insane World
by James J. Cramer
Specifically chapters 1, 2, 4 and 5.
Look for used books online and you should be able to find them really reasonably priced. You may find them at the local libraries to. The bookstore may also have copies of these books.
Once you have read the books and in particular the chapters mentioned you need to do the following to complete the requirements of your Investment Report.
A first draft or outline will be uploaded to the activity discussion. Base your outline on the following instructions.
In the outline you will list the points and produce the bibliography you are going to use in your final draft. The final draft of the Investment Report will be uploaded and submitted in the appropriate dropbox folder.
Use the following pattern of items to cover in your investment report for your first draft and final paper. The first draft is a rough draft or outline of your report and is due mid-way through the semester in the discussions. (See the schedule or discussion folder for the date). In your rough draft or outline you need to list the item you will discuss in your report and have a complete bibliography. Your bibliography needs to include the two books assigned for this report and then any other source you use including any web sources. (See the Content area, Prerequisite Knowledge and Skills for a Bibliography Information topic.)
You may use the following pattern of items for your investment report for your first draft and the final report.
Be sure to include your name, and class identification.
- Intelligent Investor Summary
In this section you should provide a summary of the major points of the chapters listed above. The final draft should have at least one possibly or two paragraphs for each chapter discussing the chapters main points.
- Real Money Summary
In this section you should provide a summary of the major points of the chapters listed above. In the final draft you should have one to two paragraphs for each chapter discussing the chapters’ main points.
III. Discuss common elements
In this section you should provide two or three examples of common agreement by the authors. You should have one to two paragraphs explaining each area of agreement.
- Cramer’s Innovation
In this section you should provide an example of at least one of Jim Cramer’s innovations. You should have one to two paragraphs explaining his ideas for keeping investing interesting. Explain his ideas of securing most or your investment money in safe and secure investments, but how having some money in speculative areas may increase interest in investing.
- Economic Trends or forecast
In this section list the economic trends or cycles that you feel are relevant to investing. Provide information from and economic survey or consider data from leading or coincident economic indicators that you use to forecast the economies current direction.
- Index Mutual Funds or ETFs
Using an Internet web-site financial section, find and identify three index mutual funds or Exchange Traded Funds. You can any combination of mutual funds or ETFs that you want.
For each of the funds or ETF’s you use describe the type of stocks or bonds in which the index fund, mutual fund or ETF invests.
In one of the funds list the top ten holdings and the percentage of the fund that the holding represents.
Using the top ten holdings how diversified is the fund?
Describe the fund’s underlying assets? What is the risk of the assets falling in value? What is the possibility for growth?)
For one company in one of your funds, find and read the latest quarterly report or annual report or an analyst’s opinion of the company. What is the outlook for this company? Do they project future growth?. Do you agree with that outlook, why or why not?
VII. Economic Risk
Explain how “high yields” or returns might mean high risk. What are the potential benefits or risks in being in one class of assets or stocks?
Explain how the information in the two books may help develop your philosophy of investing. Give your insight into whether it is a good idea to work out your own investment plan. What should a good investment plan include? Do you think an investment plan is something a person should develop? How would you use your economic knowledge to choose your investments? In this section you should take a one to two paragraphs to share your own insights on your current or future plans of understanding investments.
Bibliography – Citations: Please remember to use citations for any work you use. This includes listing web site and dates that you retrieved your information.
Please see the calendar for due dates for the first draft discussion and the final dropbox folder.