Global investors want to know the secret of the successful management in the New Yorker stock market by students at the British School and The Uruguayan American School of Uruguay.
This is the second year that Professor John Younger, in charge of the Economy and Finance class at both schools, gives his own money to his students so that they invest in the stock market as a practical exercise to learn how it works.
Younger, a canadian who spent 17 years working in finance in New York and Toronto providing financing for large North American companies like General Electric, John Deere and Citygroup, is very pleased because the project achieved its goal once again: learning about how the economy works in the real world and acquisition of a community spirit.
The result of this exercise has been the tremendous success of a 42.5% profit.
Within four months, students from both schools earned about $ 10,000 as a consequence of a careful selection of assets, while they learned the basics of the economy and stock markets.
“Teenagers without any economic training had exceeded, in benefits, the greatest money managers in the world, in an era in which world markets are falling sharply”.
As this news became known, investors and businessmen began to call at the school to find out what their “method” was.
According to Professor Younger, the key to the project’s success is very simple: students just followed their common sense and invested only in companies they know, those companies which provide products their environment and themselves consume (for example Apple and DirecTV).
Surely, the news attracted so much attention because there aren’t any other projects in the world like this, in which school students handle real money in the New Yorker stock market.
The profit’s destination was also an important factor in the learning process. Last year, the obtained money paid the annual salary of a school teacher, and this year the money will go towards building a youth service center in Uruguay.
Students just have contact with the real world, while big investors are living in glass towers.
In this regard, Younger said proudly in the “Observa” online: “if the nature of the world’s financial leaders have been the same as that of my students had, we would not have a financial crisis like today.