Investment

Basics

Presented

by

Joseph

Kennedy

Agenda

The Basics ◦ What is a stock?

◦ What is the stock market?

◦ How much money do you need to get started?

A Game Plan ◦ Goals and Risk Tolerance

◦ Strategy: D-I-Y or Brokerage Firm

◦ Online Brokers

◦ Researching Stocks

◦ Buying and Selling Stocks

Hard Lessons-Learned

Resources

Speaker Background

Former Senior Executive

in Government

Co-Founder of the

Innovations Scholarship

Fund Association

Partner in The Kennedy

Brothers, LLC

Co-Founder of Tulsa

Renaissance Investment

Group

The Basics – What is a Stock?

When you purchase a company's

stock, you're purchasing a small

piece of that company, called a

share.

The Basics – What is the stock

market?

The stock market is a market place

where investors connect to buy

and sell investments — most

commonly, stocks, which are shares

of ownership in a public company.

The Basics – How much money is

needed to invest in the market? Depends on you and your unique

circumstances

Some Guidelines (Starting w/ $10K)

◦ Conservative Long-term Investor = 20%

($2,000)

◦ Moderate Long-term Investor = 60%

($6,000)

◦ Aggressive Long-term Investor = 90%

($9,000)

A Game Plan – Goals and Risk

Establish and Document Your Investment Goals

◦ Pay for kid’s college

◦ Buy other investments (like property)

◦ Extra cash for life’s unexpectancies

◦ Augment your retirement pension

◦ Etc

A Game Plan – Risk Tolerance

A Game Plan – Determine Your Risk

Tolerance

A Game Plan – Determine Your Risk

Tolerance (cont’d)

A Game Plan – Decide on DIY or

Broker I’m the do-it-yourself type and plan to

put the work in to choose stocks for

myself.

I know stocks are a great investment,

but I’d like an expert to choose them

for me.

A Game Plan – Select an Online

Broker

Best Online Brokers – According to Investor’s Business Daily Research

A Game Plan – Research & Select

Stocks for Purchase; Keeping it SoFT

The Story ◦ What does the company do?

◦ Is it the leader in the industry?

◦ Is its products or services something that people need to have?

◦ What makes this company “the one” to deliver it?

◦ Would you want to own this company – all of it?

The Fundamentals ◦ Does the company have strong sales?

◦ Is the company making money?

◦ Are institutional (big time) investors buying the stock?

The Technicals ◦ Is the relative strength better than the S&P index/trending up?

◦ Is the stock’s price over its key moving averages – 21, 50 and 200 days?

A Game Plan – Buy or Sell Your

Stock Buying a Stock –

giving up your hard earned cash to

buy a share(s) of a company from

someone else. There are types of

buy orders – market (buying a

stock immediately at the current

price (The Ask), limit (buying a

stock at a future price), etc.

Selling a Stock – selling a stock(s) in your portfolio

to someone else. There are types

of sell orders – market (selling a

stock immediately at the current

price (The Bid), limit, (selling a

stock at a future price) etc.

Hard Lessons-Learned

There are going to be good and bad days

Don’t believe you are smarter than the

market

Don’t get emotional over a stock

Put the time in if you are a D-I-Y

Have rules you stick with

Have fun…or don’t do it.

Some Resources

Research Services ◦ Yahoo Finance (free & subscription service)

◦ Motley Fool (subscription service)

◦ Investor’s Business Daily (subscription service)

Books ◦ One Up On Wall Street by Peter Lynch

◦ Market Wizards by Jack Schwager

◦ The Intelligent Investor by Benjamin Graham

◦ Investing for Dummies by Eric Tyson

Warren Buffett: How to Invest for Beginners ◦ https://www.youtube.com/watch?v=yRr0_gJ-3mI