Saturday 23 January 2010

Basics of investing should be taught in school.

Many investors, including some with substantial portfolios, have only the sketchiest idea of how the stock market works.  The reason, is that the basics of investing - the fundamentals of our economic systema dn what they have to do with the stock market - aren't taught in school.  At a time when individuals have to make important decisions about saving for college and retirement funds, this failure to provide a basic education in investing can have tragic consequences.

For those who know what to look for, investment opportunities are everywhere.  The average high school student is familiar with Nike, Reebok, McDonald's, the Gap, and the Body Shop.  Nearly every teenager in America drinks Coke or Pepsi, but only a very few own shares in either company or even understand how to buy them.  Every student studies American history, but few realize that the US was settled by European colonists financed by public companies in England and Holland - and the basic principles behind public companies haven't changed in more than three hundred years.


Ref: 
Learn to Earn
by Lynch and Rothchild

In this book, the authors explain in a style accessible to anyone who is high school age or older how to read a stock table in the daily newspaper, how to understand a company's annual report, and why everyone should pay attention ot the stock market.  They explain not only how to invest but also how to think like an investor.

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