Succeed in Stocks Even if you Don't Know Where to Start
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Succeed in Stocks Even if you Don't Know Where to Start

How an Illiterate 18-Year-Old McDonald’s Cook Becomes a Millionaire in 50 Years
4.4 (11 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
2,003 students enrolled
Created by Dr. Scott Brown
Last updated 3/2017
English
Price: Free
Includes:
  • 1 hour on-demand video
  • 2 Articles
  • 1 Supplemental Resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Mind map the essential aspects of stock investing.
  • Implement the best diversified strategies.
  • Explore concentrated strategies.
View Curriculum
Requirements
  • Basic reading and Arithmetic.
Description

I recently interviewed one of the three most famous value investors in the world.  The first two are Warren Buffett and Charlie Munger. 

Mohnish Pabrai draws wisdom from both.  He describes a librarian who died with an estate of $4 million.  The librarian donated it to the University of New Hampshire (UNH) in 2015 according to CNBC. 

Mohnish explains that any normal eighteen-year-old with very few skills who can only get a minimum wage job can make it.

The young McDonald’s worker earns minimum wage of $15,000 for 2,000 hours of work per year. He can save ten percent because he is living at home and contributing 90% to the household budget.

 The young man sets aside ten percent of $15,000 before taxes each year. The 18-year-old saves $1,500 each year into a Roth (after taxes) or employer sponsored IRA (before taxes).

This is a conservative example. The young man (for ease of example) does not get a boost from employer matching if he saves in an employer sponsored 401(k). This would allow him to save much more

He earns 9% on a simple investment choice.  His income rises modestly with inflation.  For instance, if inflation is 2% this year he will save $1,530 in the next

When he retires 50 years from now at the age of 68 he will have saved $75,000 over the years from his salary.

At 9%, the account doubles every 8 years as per the rule of 72.  The approximate time to double an account is the number 72 divided by the rate of return on the investment. 

How Much Does $75,000 of Drip Savings Grow at 9% in 50 Years? Answer: $1,332,662

Bankrate website has a calculator that shows that this scenario will produce a retirement account for the unskilled, minimum wage 18-year-old of $1,332,662.

Is this reasonable?

The most respected textbook on investments is “Essentials of Investments” by professors Bodie, Kane and Marcus.  The chapter on portfolio theory reports that a portfolio of small U.S. stocks returned 11.80%, large U.S. stocks returned 9.62%, and world stocks 9.21%. 

These are the geometric mean returns that investors enjoyed from 1920 to 2010 in the stock market.

A simple exchange traded fund such as the Diamond — SPDR Dow Jones Industrial Average (DIA) would have allowed this unskilled 18-year-old to capture a large stock return of 9.62% over that period. 

The financial success of this 18-year-old comes from the power of compounding over a long time.  The Pabrai fund has generated average returns of about 15%. 

This higher return would generate a $12,450,561 portfolio for the eighteen-year-old.  A difference of just over 5% produces a fortune nearly ten times greater! 

-Doc Brown 

P.S. Enroll in this essential community on stock investing now. 

Who is the target audience?
  • All saving heads of households should take this course.
Students Who Viewed This Course Also Viewed
Curriculum For This Course
Expand All 10 Lectures Collapse All 10 Lectures 01:00:23
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Your Treasure Map Starts Here
2 Lectures 02:09

How to Get the Most Out of this Course

I am Dr. Scott Brown.  I hold a coveted Ph.D. in finance from a good school, The University of South Carolina.  I am also a leading researcher and tenured professor of Finance at the AACSB Accredited Graduate School of Business of the University of Puerto Rico.

I am teaching this course to give you a firm base for managing your family stock portfolio.  I have discovered that few investors grasp the big picture required to successfully handle difficult questions with your hard-earned savings. 

The typical student of this course has a successful career and is saving money to invest in a retirement.  He or she doesn’t have a background in finance or economics.  That said this course is excellent for anybody interested in stock investing. 

This subject is important because households today are forced to manage their retirements independently of the firm for which they work. You are helped to open a 401(k) or another retirement plan.  But nobody is there to assist you in selecting the assets you will need to retire wealthy. 

In this course, you will learn,

Section 1: Putting the Stock Market to Work for You!

Section 2: Discovering the Proven Best Strategies to Beat the Market!

There are three student benefits that are important to keep in mind. 

  1. The first benefit is that you will tap the returns of stocks, stock mutual funds and ETFs that have been proven to offer the most potential for growth over the long term as compared to bonds. 
  2. The second benefit is that if you invest with patience you can ride out market crashes.
  3. The third benefit is that you can alternate between stocks, cash, and bonds.

At the end of this course, students will be able to implement the best diversified strategies yielding 9 to 10% expected returns. Explore concentrated strategies with 18 to 20% average anticipated yields to decide if these are right for you.

Start Here: Welcome to the Best Market for Building Millionaires!
02:07

DOWNLOAD: Course Notes Here
00:02
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Stock Market Mechanics
2 Lectures 13:33

Life Changing Returns

In August of 2004, Google went public, auctioning its shares in an unusual IPO format. The shares sold for $85 share, closing at over $100 on day 1. At the beginning of 2017 Alphabet Inc. (GOOG) was trading at $801 per share across the NasdaqGS according to Yahoo. 

This represents a gain to an investor of $716 per share. 

Thus $85,000 invested into 1,000 shares in 2004 represents $716,000 today in liquid net worth of Alphabet Inc. (GOOG) stock. This course is designed to show you how to put yourself in the path of such possibilities. 

In this course, you’ll discover…

  • Stock Market Indexes and put them to work for you.
  • How the Stock Market is Regulated
  • How to Theoretically Estimate the Fair Price of Common Stock
  • How the Market Prices Common Stock in Reality
  • The Source of Errors in Valuation that Lead to Severe Losses
  • How to Invest in Domestic or Foreign Stocks

What is a Share of Stock?

A share of stock is ownership in a firm.  Shares confer voting rights for directors and some additional decisions managers should not be trusted to make.  These include amendments to the corporate charter and the issuance of new shares. 

Most investors purchase common stock in companies trading across major exchanges.

These offer you the best opportunities by far because people know a lot about these companies.  There are only two ways to make money in common stocks. 

Profit #1: Share prices can rise over time.  These profits are called capital gains. 

Profit #2: The company can pay a part of the earnings from company assets to the owners.  These are called dividends. 

There are two types of stock.  The first is common. The second is preferred.

Preferred stock pays a fixed dividend.  Preferred stock holders do not vote. 

Claims on firm assets by stock investors are subordinate to those of bond owners. For this reason alone, stock is riskier than bonds. 

Stockholder residual claims are the rights to firm assets when bust. This means that stock investors are last in line after creditors to clean the meat off a bankrupt firm.

Bonds mature and are paid off.  A share of stock exists for as long as the firm remains solvent. 

It is very unlikely that an investor can get rich starting with small amounts of savings even though bonds are less risky.  Common stock on the other hand is the best vehicle for growing rich from meager savings. 

Notice that this stock certificate has no maturity, par (face) value, or interest rate. That is because this is a certificate for fifteen shares of common stock. The CUSIP number is a unique firm identifier. A CUSIP assigned by the, “Committee on Uniform Securities Identification Procedures. The CUSIP number identifies a financial instrument, including: stocks of all registered U.S. and Canadian companies, commercial paper, and U.S. government and municipal bonds.”

Common stock differs along two dimensions: voting rights, and dividends. 

If the certificate listed a maturity, par, or interest rate you would immediately assume it to be preferred stock.  That is because preferred stock pays a constant dividend.

Preferred stock does not confer voting rights.  

This makes preferred stock as much like a bond as a share of equity. This softens the price volatility of preferred stock.  

In bankruptcy, preferred stock holders recoup their investment before common stock holders but after bond holders. 

Just a small fraction (5%) of capital is raised through preferred stock because the dividend payments are not tax deductible — as are bond interest payments.  It costs the company more money to issue preferred stock than it does to sell bonds. 

Billions of shares transact daily across the stock exchanges in the United States.  This generates an orderly flow of capital, equity, and information to you as investor.

Order is a key feature of well-developed and efficient stock markets that attracts investors to trade.  Electronic trading is muscling out both organized exchanges and traditional over-the-counter dealer networks.     

The New York Stock Exchange (NYSE) is the best known, with daily volume of around 4 billion shares.  This volume can peak at 7 billion shares traded in a single daily session. The NYSE started with twenty-four brokers in 1792 from a Manhattan coffee house called the Tontine on the north-west corner of Wall and Water.

Nicknamed the big board, it is still the largest and the most liquid in the world.  It is a specific location where buyer and seller meet on a regular basis to trade securities in open-outcry.

Only the largest stocks can trade across the NYSE.  A firm must have at least $10 million in earnings per year and $100 million in market value (cap).

The average today is more than $19.6 billion in market value.

Open-outcry is fading away. Computer systems (ECNs) have replaced the floor auction.

The NYSE today is a hybrid exchange that operates electronically through the Archipelago off the floor. More than 8,000 firms list across the Archipelago merged NYSE Euronext electronic communication network (ECN).

The NYSE hit a major milestone on October 28, 1998 when volume topped 1 billion shares.  This was amazing two decades ago but the stock market is still growing.  Consider this. 

The average daily volume in 2013 was more than 4 billion shares per day. 

Regional exchanges such as Philadelphia are easier to list across and welcome small firms. Some firms list across multiple exchanges.  Some managers prefer the exposure of listing across the big board.

There is no evidence that listing a company across a prominent exchange helps the share price.  Microsoft (MS) had a market cap of more than $250 billion at the beginning of the century but has never listed across a prominent exchange. 

The two other major world exchanges besides the NYSE include,

  • London Stock Exchange (LSE) in England.
  • Tokyo Stock Exchange (Nikkei) in Japan

Minor international exchanges include,

  • Frankfurt Stock Exchange (DAX) in Germany
  • Toronto Stock Exchange (TSE) in Canada
  • Sydney Stock Exchange (ASX) in Australia.

There are many others but you should focus your attention on those in the United States first.  These are the strongest leaders.

Over-the-counter markets

A company can list its stock on a network of dealers.  The best example is the National Association of Security Dealers Automated Quotation System (NASDAQ).

This was started in 1971 and allows dealers to make a market for a small stock.  The movie Wolf of Wall Street described exactly how this is done. 

Today, 3,100 different stocks are listed across the NASDAQ.

This is an important market for thinly-traded securities—securities that don’t trade very often. Without a dealer, ready to make a market in small cap stocks these would be difficult to trade.

History was made when Facebook (FB) listed across the NASDAQ in 2012. The volume was so high that the quotation system collapsed under the strain. 

Facebook (FB) dropped into the forties where it became a great investment. 

Investing in Stocks: Organized vs. OTC

Organized exchanges (e.g., NYSE) use auction markets with floor specialists who quote through open outcry.  A quarter of all trades are filled directly by a specialist.

Nine tenths of the trades cross buyer with seller.

Ten percent are the specialist buying and selling for his or her own account.  The specialist system has been widely criticized as giving a few dealers an unfair advantage.

Two thirds of trades are filled through SuperDOT. The Super Designated Order Turnaround System (SuperDot) is an electronic order routing system for traders under 100,000 shares with priority on order sizes below 2,100 shares.

Over-the-counter markets (e.g., NASDAQ) use market makers who post bid and ask prices on stocks that are thinly traded.  This is important to the economy.

Each stock has a reasonably fair price due to market makers.  This argument does not extend to specialists.

Multiple market makers offer bid and ask prices on a specific stock.

Investing in Stocks: ECNs

ECNs (electronic communication networks) facilitate transactions between brokers and traders without a middleman; specialist or market maker. Instinet and Island compete with NYSE Euronext.  These offer:

Transparency: Some allow traders to see the full limit order book where everyone can see unfilled orders. Not all ECNs do so.  Some are less transparent than others.

  • Cost reduction: Smaller spreads come without specialists or middlemen.
  • Faster execution: ECNs offer the fastest fill times per trade.
  • After-hours trading: An ECN allows you to trade stocks after hours on information releases.

ECN Drawbacks

ECNs have problems. They don’t work for thinly-traded stocks where long periods pass without a transaction. There is also a lot of competition for volume among ECNs.

This makes it unclear which will thrive. 

Investing in Stocks: ETFs

Exchange Traded Funds were created in 1990 to offer stock investors access to exotic investments and slash transaction costs. Within a decade from the introduction of the first over a 1,000 existed.

You will focus on a small group of the most liquid. These are less than 50.

Each represents a basket of assets ranging from physical commodities to financial securities.  ETFs are traded across major exchanges.

The ETF indexes to a specific portfolio such as the S&P 500 or COMEX Gold.  This minimizes management fees. The first, foremost, and largest indexed mutual fund to date is the Vanguard 500 Fund (VFINX) offering expected returns between 9 and 10%. 

These returns can easily be replicated using the ETF SPDR (SPY).  ETFs have lower management fees than indexed mutual funds. 

The extended market indexed mutual fund has an expense ratio (cost) of 0.25. The ETF has a cost of 0.08.

Investing in VFINX is the easiest way an unskilled worker can become a millionaire in the opening example of this course. There are

  • Spiders
  • Vipers
  • Diamonds
  • Qubes

ETFs cover virtually every sector and asset in the market today.


Life Changing Returns
10:29

Pricing Common Stock

Common stock valuation is easy to calculate.  Identify cash flows and discount them to the present.

Let’s review 4 different methods for valuing stock.  Each has advantages and drawbacks.

The One-Period Valuation Model

This simple model incorporates the dividend and price investors expect over the following year.

The One-Period Valuation Model Example

Here is an example using the expected dividend and price figures over the next year. What is the theoretical price for a stock with an expected dividend and price next year of $0.16 and $60? Using a 12% discount rate the answer is $53.71.

The Generalized Dividend Model

This model uses all dividend payments and no price.  It assumes that the value of the stock is comprised of a series of dividends. 

Many stocks do not pay dividends now.  Most of these companies start issuing dividends once rapid growth of the firm life-cycle has been passed.  Notice that summation is infinite,

Gordon Growth Model

The infinite sum may not be tractable.  The Gordon growth model is a simplification that makes it easy to estimate the generalized dividend model.

The Gordon Growth Model

The model assumes that dividends grow forever.  Dividends are indeed “sticky” in that they tend to go up.  The growth rate of dividends, g, is assumed to be less than the required return on equity, ke. Otherwise the dividend growth rate for the firm would become unrealistically large. 

The Price Earnings Valuation Method

Many firms do not pay dividends.  An alternative to dividend growth models is the price earnings ratio (PE), This is a widely-watched ratio that explains how much the market is willing to pay for $1.00 of firm earnings. It is simple to compute. Multiplying the average industry P/E time the expected earnings per share. This calculates the value estimate of the stock share price.             

Computing the Price of Common Stock

The industry PE ratio is 16 for a firm. What is the current price to earnings valuation method stock price for a firm with earnings of $1.13 / share?

Answer: The value (price) of the firm is the P/E ratio times earnings. 

Price = 16 X $1.13 = $18.08

Investors interpret a higher-than-average PE as anticipation of higher future earnings. A high PE ratio can also be from a perception that firm earnings are very secure.

Equity Pricing Theories
03:04

QUIZ: Stock Market Mechanics

QUIZ: Stock Market Mechanics
29 questions
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The 11 Best Stock Investing Strategies on the Planet
3 Lectures 16:44

How Mr. Market Sets Security Prices

Prices are set as the price the buyer is willing to pay for an asset in a competitive market. Superior information can play an important role in setting asset prices.  Undervalued assets are bid up.  Overvalued assets are bid down.

How Mr. Market Sets Security Prices

Imagine you go to a used car auction.  You find a Honda Accord you drive to inspect before the auction.

It rattles a bit but you decide it is worth $5,000.

A mechanic is at the auction and drives the car as well.  He realizes that the rattling is just brake pads that are cheap to fix.

He decides it is worth $7,000. 

You are the only two bidders.  You open with a bid of $5,000. 

The mechanic bids $5,100. 

You stop bidding because this is over your perceived value.  The car is sold for $5,100 to the person willing to pay the highest price for the asset. 

Imagine a stock that will pay $2 next year and grow for 3% forever. You require a 15% rate of return to compensate yourself for risk that the dividend and growth rate could drop or disappear. 

Jennifer is more confident that both the dividend and growth rate is sustainable.  As such, she only needs a 12% return to compensate herself for risk of dividend and growth reduction.

Bud works in the industry as a highly competent engineer and knows what the future of the firm is. He sees virtually no risk in his investment and requires just 7% to compensate for his risk. 

Notice the wide range in values each investor will assign to the stock price. You will be willing to pay no more than $16.66 per share. Jennifer will pay up to $22.22.  And Bud will pay as much as $50 per share.

The net effect is that the price of the stock will get bid up to $50 per share.

Valuation Errors

Lots of problems mess up the Gordon model.

  1. Estimating Growth
  2. Estimating Risk
  3. Forecasting Dividends

Dividend Growth Rate Errors

Stock Prices for a Stock with D0 = $2.00, ke = 15%, and various growth rates. Estimation error can be huge!

Stock Prices for a Stock with D0 = $2.00, ke = 5%, and various growth rates. Estimation error dramatically impacts required return. 

The Scientific Art of Stock valuation

Considering different growth rates and required rates is important in analyzing if an asset is a good value as an investment. This applies to corporate finance, bond portfolio management, real estate management, futures trading, forex, and stock investing. There are many different approaches. 

The 2007–2009 Stock and Real Estate Market Collapse

The financial crisis started in August of 2007. This was the start of a vicious bear market.

From a theoretical perspective, the crisis lowered “g” in the Gordon Growth model. This drove prices down.  This also impacted ke. Higher uncertainty increased the discount rate, lowering prices again.

Banco Popular (BPOP) was trading over $26 in August of 07’. By August of 2009 the stock traded at $1.63.  My wife was fully concentrated in BPOP in her IRA.  Ditto for most other BPOP employees.  

I instructed my wife to reallocate to the Vanguard S&P 500 index fund (VFINX) at the top of the market.  She partially bought back in at the bottom flush with capital. 

Indexes dropped by just one third while all other BPOP employees lost their retirement.  Her retirement is fast approaching a half a million in value from these two simple decisions she was courageous enough to carry out. 

Case: 9/11, Enron and the Market

The 9/11 terrorist attacks and the Enron scandal rocked the stock market in 2001. The Gordon model predicts that the growth rate (g) should drop from post-attack economic paralysis while the required return should rise from risk of both attack and the danger of more miss reported earnings.  

This should drive down the price of stocks as measured by an index such as the S&P 500.  The price of major indexes fell by 10% that year as the market collapsed for two more years. 

How Mr. Market Sets Security Prices
05:21

Stock Market Indexes

Stock market indexes measure the price behavior of groups of stocks. Major indexes include the Dow Jones Industrial Average, the S&P 500, and the NASDAQ composite average.

The Dow Jones Industrial Average

The Dow 30 composition changes periodically.  Here is the lineup from 2012.  

The Dow Jones Industrial Average

The Dow 30 returns can be easily captured by investing in the ETF DIA.

Stock Market Indexes

A dollar invested in the DJIA back in 1980 when the Dow was around 800 would have grown to about $16.40 by 2012 when the DJIA closed that year at 13,104. This represented an annual growth rate of 8.8%.  At this rate $100,000 from 1980 is worth $1,640,000 today.

Let’s look at the thirty Dow stocks as reported on DogsoftheDow.com in 2017.

Dow Jones Industrial Averages, 1980–1990

Notice that it is critical to (1) buy in low after major crashes, (2) ride out reactions to the major uptrend and (3) get out on indications of a new major crash.  In this light buy low and sell high is not so easy.

Dow Jones Industrial Averages, 1990–2013

The DJIA is such a small number of stocks that it can vary widely from a broad index such as the S&P 500. Thus, it is not as widely followed as a barometer as when it was the only index at the beginning of the birth of the modern stock market in New York. 

Foreign Stocks

There is an old theory that adding overseas shares to your portfolio will increase returns and reduce volatility.  This has not held up. 

Do not use ADRs to increase your diversification. 

Buying a foreign stock across the home exchange is useful to capture the strong share price surge. However, the purchase may be complicated for American investors due to Italian laws.

The appropriate use of ADRs is to speculate overseas.  Look at the chart of Fiat Chrysler Automotive (FCAU). 

It operates as an American depository receipt (ADR). This allows the Italian firm to trade on U.S. exchanges, facilitating share purchase. To create FCAU ADR shares U.S. banks buy Italian shares and issue receipts against shares across the NYSE.

The Italian firm must comply with the strict regulatory requirements of the United States to remain listed. 

Stock Market Indexes
04:47

Stock Market Regulation

The SEC has a primary mission of “… protect investors and maintain the integrity of the securities markets.

The SEC brings as many as 500 actions against individuals and firms in this effort annually through the joint efforts of four divisions.

SEC Divisions

#1: The Division of Corporate Finance is responsible for collecting, reviewing, and archiving all of the documents corporations and individuals must file

#2: The Division of Market Regulation maintains orderly rules and establishes efficient markets.

#3: The Division of Investment Management focuses on investment management industry oversight and regulation.

#4: The Division of Enforcement investigates rule and regulation violations established by the other divisions.

Instances of dual standards exist in the SEC.  And you don’t want to be a small fry.

The SEC was heavily criticized for allowing Merrill Lynch to shred millions of documents while investigated. 

Summary of Best Diversified Strategies

Indexed IRAs — these are easy to set up.  Just buy the lowest cost, lowest turnover equity indexed mutual fund in the menu of selections for your employer sponsored 401(k). 

Dogs of the Dow — Discover how to set up a simple 10 stock portfolio at Dogs of the Dow dot com. 

The S&P Top Ten Dividend Yielders — Buy the 10 highest dividends yielding stocks in the S&P 500.  There are a number of websites that will give you this. 

Summary of Best Non-Diversified Focused Strategies

  • Small Dogs of the Dow — Buy the 5 highest dividend yielding stocks listed at DogsoftheDow.com.
  • The S&P Five Dividend Yielders — Buy the top 5 dividend yielding stocks at a website such as that in the last slide. 
  • The Warren Buffet 10 Stock Value System — Read all of Warren Buffet’s letters to shareholders then buy the 10 best value stocks you can find. 
  • The Charlie Munger 3 Stock Value System — Buy the 3 best value stocks that you can find.
  • The Nicolas Darvas 3 Stock Price Impact System — I have a course on this. 
  • The Turtle Trading System — I cover this in other courses.
  • The John Maynard Keynes 1 Stock Portfolio — Buy shares in the biggest and best managed business in the market today that you can find. 
  • The Equity Option Return Amplification Portfolio — Amplify returns 5-fold or more with controlled leverage investing.  I have a number of courses on this. 

Summary of Best Investing Books

  • How I Made $2,000,000 in the Stock Market by Nicolas Darvas — Best description of multiple stock market campaigns.  Must read.
  • Reminiscences of a Stock Operator by Edwin LeFevre — Best description of the mentality of making it big in stocks. 
  • How to Trade Stock by Jesse Livermore — From the legendary stock investor himself interviewed in Reminiscences. 
  • How to Make Money in Stocks: A Winning System in Good Times and Bad by William O'Neil — Good explanations of useful tools from the Investor’s Business Daily financial newspaper. 
  • The Dhando Investor by Mohnish Pabrai — Great biography of a bright man from India who made it big after reading all Warren Buffett had to write. 
  • How to Make the Stock Market Make Money for You by Ted Warren — How a welder became vastly wealthy in the stock market. 

Summary of Best Psychology Books (cont.)

  • Think and Grow Rich by Napoleon Hill — How to build focus and resolve.
  • The Disappearance of the Universe by Gary Renard — How to look at money differently for a winning mentality by letting go of material concerns.  Very helpful when the market goes against you. 
  • Advaita Vedanta : A Philosophical Reconstruction — A similar system of thought as that described by Gary Renard. 

Student Activity Challenge

Find the stock you consider the single best among the Dogs of the Dow today.  Use DogsOfTheDow dot com to do your research.  Post and I will critique.  The student with the highest rising stock at the end of the month wins a prize. 

Stock Market Regulation
06:36

QUIZ: The 11 Best Stock Investing Strategies on the Planet

QUIZ: The 11 Best Stock Investing Strategies on the Planet
29 questions
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Daniel Hall Discusses How Financial Stewardship Has Improved His Life
3 Lectures 27:59

Daniel Hall Discusses How Financial Stewardship Has Improved His Life (1 of 2)

Daniel Hall Discusses How Financial Stewardship Has Improved His Life (2 of 2)
12:27

Daniel Hall Discusses How Financial Stewardship Has Improved His Life (1 of 2)

Daniel Hall Discusses How Financial Stewardship Has Improved His Life (1 of 2)
15:13

Bonus Lecture: My Special Udemy Coupon Offer to You

Bonus Lecture: My Special Udemy Coupon Offer to You
00:19
About the Instructor
Dr. Scott Brown
3.8 Average rating
526 Reviews
18,943 Students
26 Courses
Major State University Finance Professor, Investments Expert

"There is no one like you that I know of who is this transparent, that is what makes your service and education so valuable. Please keep on." -L.B. A Washington State Stock Investor

Dr. Scott Brown and “Intelligent Investing” — helping you get the most out of your hard earned investment capital.

As an investor, I have spent over 35 years reading anecdotal accounts of the greatest investors and traders in history. My net worth has grown dramatically by applying the distilled wisdom of past giants.

I have researched and tested what works in the world’s most challenging capital markets — and I teach you every trick I know in my Udemy courses!

>>>Learn from leading financial experts!

>>> How about discovering how I have tripled family member’s accounts in six years with simple stock picks?

>>> Want to master set and forget limit stop loss tactics for sound sleep?

>>> Does Forexinterest you?

>>>Is your employer sponsored 401(k) plan optimized?

>>>Do you know the fastest rising highest dividend yielding common stock shares in the market today?

>>> High roller? How would you like to know how to dramatically lever your savings with deep-in-the-money call options?

Enrollin my Udemy courses — you can prosper from all of this — plus much, much more now!

(In the last six years we have exploded our net worth and are absolutely debt free, we live a semi-retired Caribbeanlifestyle in atriple gatedupscale planned community from a spacious low maintenance condo looking down on our tropical beach paradise below).

My Curriculum Vitae:

Investment Writing and Speaking:

I am an internationalspeaker oninvestments. In 2010 I gave a series of lectures onboard Brilliance of the Seas as a guest speaker on their Mediterranean cruise. Financial topics are normally forbidden for cruise speakers. But with me they make an exception because of my financial pedigree.

On day 6 the topic I discussed was “Free and Clear: Secrets of Safely Investing in Real Estate!“ The day 7 topic was “Investment Style and Category: How the Stock Market Really Works!” Then on day 8 I spoke about “The 20% Solution: How to Survive and Thrive Financially in any Market!” The final talk on day 11 was “Value Investing for Dummies: When Dumb Money is Smart!

Gina Verteouris is the Cruise Programs Administrator of the Brilliance of the Seas of Royal Caribbean Cruise Lines. Regarding my on-board teachings she writes on June 19th, “You have really gone above and beyond expectations with your lectures and we have received many positive comments from our Guests.”

I sponsored and organized an investing conference at Caesars Palace in Las Vegas in 2011 under my Wallet Doctor brand. This intimate conference was attended by 14 paying attendees.

As such many strides were made in financial education that week. For instance I met a woman who is a retired engineer from the Reno, Nevada area.

She made a fortune on deep in the money calls during the bull markets of the 90s.

This humble and retired engineer inspired me to look more seriously at deep in the money calls with far expiration. She also gave me an important clue regarding trading volume.

Her call option and volume insights have been confirmed in the Journal of Finance.

In 2012 I gave a workshop at the FreedomFest Global Financial Summit on stock investing at the Atlantis Bahamas Resort. I was also a panelist on a discussion of capital markets.

My course “How to Build a Million Dollar Portfolio from Scratch" at the Oxford Club is an international bestseller. In 2014 I co-authored “Tax Advantaged Wealth” with leading IRS expert Jack Cohen, CPA. This was the crown jewel of the Oxford Club Wealth Survival Summit.

I have been a regular speaker at the Investment U Conferences.

In 2012 I gave a workshop entitled “How to Increase Oxford Club Newsletter Returns by 10 Fold!” The conference was held at the Grand Del Mar Resort in San Diego, California. This resort destination is rated #1 on TripAdvisor.

In 2013 I spoke at the Oxford Club’s Investment U Conference in San Diego California. The talk was entitled “The Best Buy Signal in 103 Years!” Later in the summer I spoke at the Oxford Club Private Wealth Conference at the Ojai Valley Inn.

This was at the same time that Jimmy Kimmel married Molly McNearney in the posh California celebrity resort. It was fun to watch some of the celebrities who lingered.

I also operate a live weekly investment mentorship subscription service under the Bullet-Proof brand every Monday night by GoToWebinar.

Academic Research:

I am an associate professor of finance of the AACSB Accredited Graduate School of Business at the University of Puerto Rico. My research appears in some of the most prestigious academic journals in the field of investments including the Journal of Financial Research and Financial Management. This work is highly regarded on both Main Street and Wall Street. My research on investment newsletter returns was considered so important to investors that it was featured in the CFA Digest.

The Certified Financial Analyst (CFA)is the most prestigious practitioner credential in investments on Wall Street.

Prestigious finance professor Bill Christie of the Owen School of Business of Vanderbilt University and then editor of Financial Management felt that our study was valuable to financial society. We showed that the average investment newsletter is not worth the cost of subscription.

I am the lead researcher on the Puerto Rico Act 20 and 22 job impact study. This was signed between DDEC secretary Alberto Bacó and Chancellor Severino of the University of Puerto Rico.

(See Brown, S., Cao-Alvira, J. & Powers, E. (2013). Do Investment Newsletters Move Markets? Financial Management, Vol. XXXXII, (2), 315-338. And see Brown, S., Powers, E., & Koch, T. (2009). Slippage and the Choice of Market or Limit orders in Futures Trading. Journal of Financial Research, Vol. XXXII (3), 305-309)

Graduate Degrees:

I hold a Ph.D. in Finance from the AACSB Accredited Darla Moore School of Business of the University of South Carolina. My dissertation on futures market slippage was sponsored by The Chicago Board of Trade. Eric Powers, Tim Koch, and Glenn Harrison composed my dissertation committee. Professor Powers holds his Ph.D. in finance from the Sloan School of Business at the Massachusetts Institute of Technology [MIT]. Eric is a leading researcher in corporate finance and is a thought leader in spin offs and carve outs.

Dr. Harrison is the C.V. Starr economics professor at the J. Mack Robinson School of Business at Georgia State University.

He holds his doctorate in economics from the University of California at Los Angeles. Glenn is a thought leader in experimental economics and is the director of the Center for the Economic Analysis of Risk.

Tim Koch is a professor of banking. Dr. Koch holds his Ph.D. in finance from Purdue University and is a major influence in the industry.

My dissertation proved that under normal conditions traders and investors are better off entering on market while protectingwith stop limit orders. The subsequent article was published in the prestigious Journal of Financial Research now domiciled at Texas Tech University — a leading research institution.

I earned a masters in international financial management from the Thunderbird American Graduate School of International Business. Thunderbird consistently ranks as the #1 international business school in the U.S. News & World Report, and BloombergBusinessWeek.

Academic Conferences:

I spoke at the 2010 annual conference of the International Association of Business and Economics (IABE) conference in Las Vegas, Nevada. The research presented facts regarding price changes as orders flow increases in the stock market by advisory services.

I spoke at the 2010 Financial Management Association [FMA] annual conference in New York on investment newsletters. The paper was later published in the prestigious journal “Financial Management.”

I presented an important study named “Do Investment Newsletters Move Markets?” at the XLVI Annual Meeting of the Consejo Latinoamericano de Escuelas de Administración (CLADEA) in 2011 in San Juan, Puerto Rico. The year before that I presented my futures slippage research at a major renewable energy conference in Ubatuba, Brazil.

I spoke at the Clute International Conferences in 2011 in Las Vegas, Nevada. The research dealt with the price impact of newsletter recommendations in the stock market.

I presented a working paper entitled “The Life Cycle of Make-whole Call Provisions” at the 2013 Annual Meeting of the Southern Finance Association in Fajardo, Puerto Rico in session B.2 Debt Issues chaired by Professor LeRoy D. Brooks of John Carroll University. Luis Garcia-Feijoo of Florida Atlantic University was the discussant. I chaired the session entitled “Credit And Default Risk: Origins And Resolution.” Then I was the discussant for research entitled "NPL Resolution: Bank-Level Evidence From A Low Income Country" by finance professor Lucy Chernykh of Clemson University and Abu S Amin of Sacred Heart University and Mahmood Osman Imam of the University of Dhaka in Bangladesh.

That same year I presented the same study to the Annual Meeting of the Financial Management Association in Chicago, Illinois. I did so in session 183 – Topics in Mergers and Acquisitions chaired by James Conover of the University of North Texas with Teresa Conover as discussant. I chaired session 075 – Financial Crisis: Bank Debt Issuance and Fund Allocation. Then I was the discussant for TARP Funds Distribution: Evidence from Bank Internal Capital Markets by Elisabeta Pana of Illinois Wesleyan University and Tarun Mukherjee of the University of New Orleans.

Academic Service:

I am a member of the MBA Curriculum Review Committee, the MBA Admissions Committee, The Doctoral Finance Admissions Committee, the Graduate School Personnel Committee, and the Doctoral Program Committee of the School of Business of the University of Puerto Rico.

Financial Journalism:

I am the editor of Momentum Investor Magazine. I co-founded the magazine with publisher Daniel Hall, J.D. We have published three issues so far. Momentum Investor Magazine allows me to interview very important people in the finance industry. I interview sub director Suarez of the DDEC responsible for the assignment of Puerto Rico act 20 and 22 licenses for corporate and portfolio tax reduction in the third edition. Then I interview renowned value investor Mohnish Prabia in the upcoming fourth edition — to be made available via Udemy. Valuable stock market information will be taught throughout.

Charity:

In October of 2010 I arranged for the donation to The Graduate School of Business of the University of Puerto Rico of $67,248 worth of financial software to the department that has been used in different courses. This was graciously awarded by Gecko Software.

I have guided thousands of investors to superior returns. I very much look forward to mentoring you as to managing your investments to your optima! –Scott

Dr. Scott Brown, Associate Professor of Finance of the AACSB Accredited Graduate School of Business of the University of Puerto Rico.