Students Gain Insights into investment Strategies

Upper School students in Tom Carroll’s Honors Economics classes are given a hypothetical $100,000 every September to invest, trade and track over the course of the school year.  They then compete with their classmates to see who can grow their portfolio the most over the year.

The classes enjoyed a recent visit from MKA Trustee, parent and alum Eric Pai ’79, an investment banker, who spoke to them about how macro economic trends (GDP growth, unemployment, interest rates and value of the dollar) affect the stock market and equity valuations.

Because of their familiarity with its products, a favorite investment pick among the students is Apple.  Pai presented a detailed analysis of the company, of their competitive strategy and their product portfolio and offered suggestions as to why the market values Apple as highly as it does.  Through his presentation, the students gained valuable insights into how a professional investor looks at a company - something that will help them throughout the year as they manage and invest their portfolio.

“This visit was so informative,” commented Carroll.  “It gave my students a real world perspective to apply to what they are learning in class and they enjoyed it a lot.  I am happy to say that some of the students are beating the market substantially!”