Its a Miracle!

A St Agnes Miracle, that is!

In 1990 a class of Seventh graders at the St Agnes School in Arlington, MA sent him a sample portfolio they had put together as a class project. They invested an imaginary $250,000 in 14 stocks, and watched the growth over the entire school year. And they beat Wall Street!

Here are words of wisdom fro the 7th grade class at St Agnes School.

• A good company usually increases its dividend every year.
• You can lose money in a very short time but it takes a long time to make money.
• The stock market really isn’t a gamble, as long as you pick good companies that you think will do well, and not just because of the stock price.
• You can make a lot of money from the stock market, but then again you can also lose money, as we proved.
• You have to research the company before you put your money into it. When you invest in the stock market you should always diversify.
• You should invest in several stocks because out of every five you pick one will be very great, one will be really bad, and three will be OK.
• Never fall in love with a stock; always have an open mind.
• You shouldn’t just pick a stock — you should do your homework.
• Buying stocks in utility companies is good because it gives you a higher dividend, but you’ll make money in growth stocks.
• Just because a stock goes down doesn’t mean it can’t go lower.
• Over the long term, it’s better to buy stocks in small companies.
• You should not buy a stock because it’s cheap but because you know a lot about it.

Check out the entire story of the St Agnes Miracle. It’s a really interesting read!