BUS-123 - Introduction to Investments
Spring 2019

Southwestern Community College
Instructor: Frank Paiano


Most all the documents are presented via Google Docs. You should be able to read the documents on any device. Very cool!

You are also to download the documents into a PDF or Word or OpenOffice or Rich Text Format file. Also very cool!

However, if your device says that the document could not be read, try updating your mobile device's Google Docs app or updating your PC, Mac, or Linux browser. (The problem may also be that you are not currently connected to the Internet. Try again when you are connected.)

You, too, can use Google Docs. It is free and allows you to manipulate your documents on your desktop or laptop computer or your mobile device. Plus they will give you several gigabytes of free storage. Even more cool!

Announcements and class material begin below. Keep scrolling.



Be not afraid.

"The moral arc of the universe in long, but it bends toward justice." -- Martin Luther King, Jr.

"This country is so fundamentally strong it can survive its leaders." -- Louis Rukeyser

Is the American republic built to withstand a malevolent president?

Same arguments as during Fascism in the 1930's and 1940's.


*** Text Book Information at the Bottom of the Page ***

Yes, yes, I know. This web page looks intimidating. "Aye, Paquito! All those links!"
Relax. Much of it is duplicated. (In the case of the presentations, quaduplicated!)
Just get started and remember to listen, watch, and work at least an hour each day.




First Exam

Final Exam
BUS-123-01
Face-to-Face
Tuesdays & Thursdays
8:35 a.m. to 10:00 am
Exam #1: Chapters 1 and 4
Tentative: Thursday, February 21st

Chapter 1: Introduction to Investments, Overview of Investment Universe, Risk versus Return, Short-term investments
Chapter 4: Mutual Funds
BUS-123-501 & 502
Online
Online Exam #1: Chapters 1 and 4
Thursday, February 21st, to Sunday, February 24th

Chapter 1: Introduction to Investments, Overview of Investment Universe, Risk versus Return, Short-term investments
Chapter 4: Mutual Funds


Announcements

Announcements for Online Students  (Announcements also available in Canvas)

Week #0 - Presemester Announcement -  For students enrolled in the online BUS-123, Introduction to Investments, class
    Video - Video (CC) - Audio


Chapter Presentations, Handouts, and Assignments


Part 1:
Introduction


Syllabus:
BUS-123-01 Tuesday/Thursday - Audio commentary will be created during Lecture 1 on January 29th
  You could also listen to the Audio Commentary for the Online Classes Syllabus. It is almost exactly the same.
BUS-123-501 & 502 Online - Audio Commentary of Online Class Syllabus - Long Format  Long format in Canvas
Your Humble Professor Introduces Himself
Your Humble Professor Introduces Himself (CC)
Your Humble Professor Introduces Himself with just audio
A Guided Tour of the class website - Video (CC) - Audio  Uh, it's what yer lookin' at right now.
Videos on Apple iTunesU  You must install and use iTunes to view videos on iTunes University.

Chapter 1 and Notes:
What is an Investment?
The Investment Universe
Risk versus Return
Short-term Securities


Chapter 1 Materials
Presentation  Every chapter has a presentation that can be read with Powerpoint, Open Office, Libre Office, or Google Docs
Study Guide - Video - Video (CC) - Audio  Discussion of the chapter study guides and how to use Google Docs
Assignment - Commentary   The process is more important than the information and answers. Enjoy!
Short-Term Investments Assignment - Commentary
TreasuryDirect.gov Assignment - Commentary
   TreasuryDirect.gov  Your Federal Tax Dollars at Work!
   Cetes Directo    El TreasuryDirect.gov de Mexico - Miralo - Una tasa de interes mas grande que los estados unidos
How to Submit Assignments - Commentary
Discussion Boards Assignment (Online students only) - Commentary
  Add your picture to the discussion boards!  We want to see your smiling face!

Security? But I'm not an Administration of Justice Major!   No, not that type of security
Security Types Matching Handout - Answer Key   Memorize for exam! You must know these!
Investopedia: What is a Security?

Sample Portfolio Class Project - Commentary

Books to Read (Eventually) - Commentary
Future Value Worksheet - Commentary - Answer Key
Future Value Tables
Turn $33,000 into $7,000,000 in just 2 years! - Rates of Return - Commentary

Short-term Securities Investments
Short-term Securities Examples - Video - Video (CC) - Audio
  2018 Examples: Fall 2018 - Spring 2018  The Federal Reserve Bank started raising short-term rates in 2015
  2014 Example: Fall 2014 -  Before 2015, short-term rates were close to zero!
Interview with a Dyed-in-the-Wool CD Investor  Jeanne tells you why she will only invest in short-term investments
Bankrate.com  Popular Internet site for researching short-term investments

Online Audio Lectures
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story - Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Online Audio/Video Lectures (Apple mobile users: Search "BUS123" in iTunes.)
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Online Audio/Video Lectures on YouTube (Closed captioning available)
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Online Audio/Video Lectures on 3CMediaSolutions (Excellent closed captioning available)
Chapter 1, Notes - Lecture 1 - Slides 1 to 14    Introduction: What is an Investment?
Chapter 1, Notes - Lecture 2 - Slides 15 to 34    An Overview of the Investment Universe
Chapter 1, Notes - Lecture 3 - Slides 35 to 54    Risk versus Return
     Liar's Poker Story -- Slide 48    Are you a Speculator/Trader or are you an Investor?
     The Value Line on the Difference between Investing and Speculating/Trading
Chapter 1, Notes - Lecture 4 - Slides 55 to 73    Short-term Investments

Chapter 4:
Mutual Funds


Chapter 4 Materials
Presentation
Study Guide - Commentary
Assignment - Commentary
Mutual Fund Annual Report Assignment - Commentary   (You can use the Annual Reports and Prospectuses links below)
Thrift Savings Plan Assignment - Commentary
Mutual Fund Case Studies - Commentary  (Not an assignment but something like this might just be on the exam -- hint, hint)
Investor.gov: What Are Mutual Funds   The Federal government explains mutual funds

Strategies for Navigating the 401(k) Jungle -- Tom Petruno, LA Times
Jack Bogle sticks it to the 401(k) world  And Senator Oral Hatch is not pleased...

Mutual Funds Used in Lecture #2
AB Large Cap Growth Fund   Formerly Alliance Large Cap Growth Fund
New Economy Fund
Clearbridge Value Trust   Formerly Legg Meson Value Trust
Vanguard 500 Index Fund
Fidelity 500 Index Fund

Mutual Fund Types Scramble Sheet (Online lecture 3) - Commentary

A Sample Mutual Fund  (Online lecture 4 - Just one of over 11,000!)
ICA Prospectus: Full - Summary - Commentary
Top 75 Holdings of ICA -  Commentary
The Benefit of Time -  Commentary
Worst Day / Best Day -  Commentary

Offerings of Sample Mutual Fund Companies Performance  (Online lecture 4)
Vanguard Funds Performance
American Funds Performance
Fidelity Funds    Only shows 310 or so of Fidelity's over 500 mutual funds.
Fidelity Funds and all the other funds that they offer through their web site    Over 11,000!
Dodge and Cox Funds Performance
T. Rowe Price Funds
Franklin Templeton Funds

Annual Reports and Prospectuses  (Online lecture 4 and Mutual Fund Annual Report Assignment)
Vanguard Funds
American Funds
Fidelity Funds
Dodge and Cox Funds
T. Rowe Price Funds
Franklin Templeton Funds  Choose fund and then find [Documents]

Top Ten Mutual Fund Companies by Assets  Investment News, John Waggoner, Sep 2017 - Careful: Different sources have different results

Mutual Fund Commentaries, Insights, and Perspectives
Vanguard Insights - John Bogle's Official Website - Obituary for Howard Schow
American Funds Investment Insights - The Capital Ideas (Parent company of American Funds) - Obituary for Jon B. Lovelace
Fidelity Funds Insights - Viewpoints - Ned Johnson on Wikipedia
Dodge and Cox Funds Video Perspectives Gallery - Insight Papers
T. Rowe Price Investing Insights - Biography of T. Rowe Price, Jr.
Franklin Templeton Funds Investing Commentary - John Templeton's Official Website

No Investment Is Perfect ...
Mutual Funds Far Outperform Mutual Fund Investors   Huh? That does not make any sense. But it is true! See last presentation.
Why The Average Investor's Investment Return Is So Low
Like Moths to a Flame   In January 2014, investors (?) rushed out of stock funds and into bond funds ... at just the wrong time. Fun video.
A Cautionary Tale for Investors   An example of a mutual fund without proper oversight by the Board of Directors

Text Book

Here are links to sellers of the 8th, 7th, 6th, 5th, and 4th edition of the text book: "Fundamentals of Investments" by Jordan & Miller
The text book is available at the college book store as well as numerous other outlets.
The text book is usually also available across the street at Otay Books.
There are now web-based versions of text books available at www.coursesmart.com.
Except for the data being updated, there are not many differences between the 4th, 5th, 6th, 7th, and 8th editions.
Also, there are two copies in the main campus library on reserve. You can read them there but they can not be checked out
Please listen to the syllabus commentary about the textbook. (Hint, hint. Wink, wink. Nudge, nudge.)
8th Edition -- This is the "official" book of the Spring 2019 class
Amazon: https://www.amazon.com/Fundamentals-Investments-Management-Bradford-Jordan/dp/1259720691/ref=dp_ob_title_bk
eBay.com: Various editions available on eBay
Chegg.com: https://www.chegg.com/etextbooks/fundamentals-of-investments-valuation-and-management-8th-edition-9781260048063-1260048063?trackid=492f0b79aadc&strackid=86010ff9ab5a&ii=3
7th Edition -- Very similar to the current edition (but cheaper)
Amazon: https://www.amazon.com/MP-Fundamentals-Investments-Stock-Trak-card/dp/0078115663/ref=sr_1_2?ie=UTF8&qid=1470412788&sr=8-2&keywords=fundamentals+of+investing+7th+edition+jordan
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-7th-edition-9780077861636-0077861639?trackid=67a86a11&strackid=6c290340&ii=5
6th Edition -- Also very similar to the current edition (but even cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurance/dp/0077457641/ref=dp_ob_title_bk
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-with-stock-trak-card-6th-edition-9780077457648-0077457641?trackid=YAJcVwrZ&ii=1&om_ss=1
5th Edition -- Again, very similar to the current edition (but even more cheaper)
Amazon: http://www.amazon.com/Fundamentals-Investments-Stock-Trak-Mcgraw-Hill-Insurane/dp/0077283295/ref=sr_1_6?s=books&ie=UTF8&qid=1322833773&sr=1-6
eBay.com: Various editions available on eBay
Chegg.com: http://www.chegg.com/textbooks/fundamentals-of-investments-w-sp-card-stock-trak-card-5th-edition-9780077283292-0077283295?trackid=5a730d99&autosuggest=1&uqry=9780077283292&ii=1
4th Edition -- You guessed it! Very similar to the current edition (but probably the cheapest)
Amazon: http://www.amazon.com/Fundamentals-Investments-McGraw-Hill-Finance-Insurance/dp/0073027219/ref=sr_11_1?ie=UTF8&qid=1199133503&sr=11-1
eBay.com: Various editions available on eBay

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