welcome! october 4 th, 2010. mission statement common cents investment group is an organization open...

Welcome!OCTOBER 4TH, 2010

Mission Statement

COMMON CENTS INVESTMENT GROUP IS AN ORGANIZATION OPEN TO ALL STUDENTS WHO ARE INTERESTED IN LEARNING ABOUT INVESTMENTS. THE FOCUS OF THE CLUB IS TO INCREASE THE KNOWLEDGE OF OUR MEMBERS THROUGH THE DISCUSSION OF INVESTING STRATEGIES AND IDEAS. WE TALK ABOUT ALL ASPECTS OF INVESTING, INCLUDING MUTUAL FUNDS, STOCK MARKET, OPTIONS, AND MANY OTHER SCENARIOS, AND TEACH OUR MEMBERS THE FUNDAMENTALS OF INVESTING. THERE IS SOMETHING TO BE LEARNED AT EVERY MEETING FOR BOTH BEGINNERS AND SOPHISTICATED INVESTORS.

Our Officers• President: Ross Klosterman

klosterman.53@buckeyemail.osu.edu• Vice President: Steven Billups

billups.13@buckeyemail.osu.edu• Treasurer: Chris Zych zych.5@osu.edu• Public Relations: Neil Jindal

jindal.neil@gmail.com• Portfolio Manager: Luke Birk

birk.14@osu.edu• Adviser: Kurtis Roush

What Is Investing?• Investing - The art of committing money or

capital to future endeavors with expectation to obtain additional income.

• Why?• 1. Achieve financial goal• 2. Increasing net wealth• 3. Retirement• 4. Stay ahead of inflation

How to know what to invest in?• 2 methods:

– Fundamental Analysis– Technical Analysis

• Most lean one way or the other– We focus on fundamental and value (basically

interchangeable) investing– We will cover both – currently thinking 2

weeks fundamental/1 week technical

Trivia• Investor A: Starts contributing $2,000

annually to an IRA at the age of 26.• Investor B: Contributes $2,000 per year

to an IRA beginning at age 19 and ending at age 25.

• Earn 10% per year.• Who ends up with more money at age 65?

The Power of Interest• 10% Interest Rate• Investor A:– Contribution: 80,000– End Value: 973,704– Net Earnings: 893,704

• Investor B:– Contribution: 14,000– End Value: 944,641 – Net Earnings: 930,641

So what?• Start saving and investing as early as

possible and are the most important factors in building wealth

• In this day and age, it is up to ourselves to ensure future financial security. Others, especially the government, can’t do it for us.

• The moral isn’t necessarily to stop investing after age 25– Consider a hypothetical investor C who invests

$2,000 annually from ages 19-65, end with nearly $2 million

What do we do here?• We want to make you comfortable

enough to put some of your own money in that warzone known as the stock market

• With the right knowledge and practice, you can navigate that warzone to your benefit

New for this year• 2 year program. You are all the first year. – Why?

• Club portfolio as well as stock picking competition

• More speakers. Currently contacting several well known banking players (Merrill Lynch, JPMorgan, PNC, etc.)

• Wall-St Training Seminar• Member trip to Chicago (tentative)

What do YOU want to know?

• Cost for the year is $20– Pizza and pop at every meeting, as well as t-

shirts

• We only exist because you come here so..

What can we do to make this experience most beneficial to all of you. We are going to take these considerations seriously.

Thanks!• Questions?• Comments?

• 1 addtl. note: Clean Sweep, Sundays at Noon. We get $45 each clean week, on Norwich from High to Indianola.. so get to know other members as well as some community service!