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What would you do if you were given $100,000?
Would you spend it all at once? Would you think about putting some of it in the bank?
The Stock Market Game (SMG), may help you, as a student, to gain a fundamental understanding of investing and how you might get your money to work for you.
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I’m thinking I might buy a property and use the money to flip it. I’ve had some good luck in making wise real estate purchases, and it would be fun to beautify a fixer-upper.
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Great option!
Tell me, if I were a student interested in flipping residential real estate for pocket money, where should I begin? (Assume that my parents have already informed me to go about matters sensibly, practically and with sound financial backing!)Also, any suggestion on how you would build this little exercise into a lesson plan?
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Happy to mentor. Own / owned more than 100 properties in 5 countries. Been investing in real estate since I was 19 … almost 40 years now! Call or email me and I am happy to discuss with you or anyone else completely free with no catches, no strings attached. Just a fortunate guy willing to share what I’ve learned.
Probably the best way to build wealth, not income, but wealth.
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I think I would split the money. I’d buy a piece of land with its own fresh water supply, suitable land for growing, in a politically stable country with favourable tax laws and a reasonable record for human rights. The rest I would split between BTC (70%), alt coins, and copper mining stocks.
I have concerns about real estate at the moment, as I believe the bubble will soon burst. I’ve done well on my home, but it’s as much a liability for me as it is an asset.
https://www.youtube.com/watch?v=YrWopI02n_E
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Neat!????
Any ideas on how best we could provide an interest based approach to volatility, diversification and returns for young students?-
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Hi Paul, In my Soc. Sci. classes I usually start with the premise that all of life is an opportunity for investments, where energy is the commodity of life. Life is volatile and volatility can be healthy, the question is of risk (we explore volatility in nature and discuss risk assessment). It’s easy to find comparisons between ekg readings, stock charts, seasonal variability charts, etc. Nature’s strategy for development is diversification (explore biodiversity). Then we have discussions about how to apply nature’s investment strategy to personal finance. Lots of rich discussion ensue. Right now my students have to research and select on alt coin that they would like to invest in. They have to analyse the candlestick chart, present the use case, assess risk, and predict/defend their exit strategy.
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Woah! I love your analogy using nature. I can only imagine the fuel this type of comparison provides to class discussions. Shout if you have ‘observer’ seats in your class for any parents keen to bend learning curves????
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What do you mean by: “… interest based approach ….”
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I don’t think there are any country’s that fit that bill anymore. If you find one let me know!
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I would likely place it all in Tesla if I had it today, as it’s the only one I truly understand and wouldn’t be a bet. I also may also put it into Bitcoin. Both would be long-term investments of 10+ years.
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Hey Carl. ARK Invest has created a number of ETFs of which they own huge positions in Tesla. There is a guy with a really great YouTube channel that talks about them https://www.youtube.com/c/TickerSymbolYOU/videos with bite-sized 20-minute videos summarising ARK information releases. Basically, ARK’s strategy is investing in technology companies where they have a high conviction that their product/service will disrupt in 5-10 years. ARK has a different approach to most funds, in that they believe in making ALL of their research publically available as they believe the community is what drives growth. A bit like The Network 🙂
Here is the one about Tesla https://www.youtube.com/watch?v=rzTS6Nz8ATQ
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put 1000 into the top 100 ALT coins and wait for the 3200% return
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This is probably the most boring option suggested but a well-constructed portfolio over the long term is a great option (there is this guy called Warren Buffet who recommends this method 😉
This is a FREE site https://portfoliocharts.com/
It has a huge amount of free information (including already done portfolios https://portfoliocharts.com/portfolios/) and a range of statistical measures (in nice dashboards) which if you spend the time to understand, you can choose the right portfolio for your risk tolerance and time horizon.
For instance, it statistically compares how portfolios perform against one another. One of the interesting comparisons is seeing how a selected portfolio performs against just investing in something like the S&P500 only (i.e. 100% stocks). You will see the huge differences in max drawdowns and years spent in drawdown etc. (spoiler alert 100% stocks is not great for this). A well-constructed portfolio will have little to none of this.
The analogy the website uses is that a portfolio is like a cake mixture. Each ingredient on its own might not taste all that nice (like a raw egg, flour, butter etc.) but when combined together they make something really great.
The stats are a bit heavy but well worth diving into to understand the expected variances of a particular portfolio – and especially how they objectively compare to one another (this is the most powerful feature in my opinion). Some of the broad concepts like the cake recipe analogy above are great for kids to understand.
My favourites in there are:
The Golden Butterfly https://portfoliocharts.com/portfolio/golden-butterfly/ (which admittedly has likely been curve fitted to past data to look very good)The All Seasons Portfolio (by the legendary Ray Dalio) https://portfoliocharts.com/portfolio/all-seasons-portfolio/
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Voice of reason! Thanks Sam ???? I often wondered how to visually represent a portfolio using some sort of 3D data visualization tool. Maybe that endeavor in itself would provide a few great lesson plans for students?
Could we visually represent the distribution within money market, bonds, property and equity in a manner that would rather quickly indicate both ‘immediate’ growth, momentum and capital gains?
The aim of providing such a representation may be to take the ‘boring’ data to students in a format that permits them to discern the relationships between certain asset classes and their underlying distributions. If anyone knows of an existing tool then please post! Imagine if we could take valuable ‘distinction’ insights to the bright minds of our students????!-
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I would imagine within 5-10 years this will be in VR 😉
But I do not know of any tool currently that does this but it sounds a cool idea.
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Microsoft has a free 3D tool that can be used to visualise statistical data from CSV or XLSX files. Perhaps this is of interest?
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Appreciate the post Ryan, thanks! Will download the – Charts 3D, a Microsoft Garage Project – app on the MS Store and try it out ????
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I would spend quite some time studying and learning about market trends and invest in companies I believe will be successful in the future and create a positive difference in the world.
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Now that I’m involved in other projects, I think I’d put it into exploring DAOs.
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