Best way to Learn

Whenever we search over google for any product or service we include the word best at the outset. The best company to work for. The best stock to invest in. The best way to learn and other searches. Ironically, we want best , but we rarely put on the required efforts to be the best.

Back to the topic what’s the best way to learn. Per your brain, what’s the first thought that comes to your mind on thinking of the same. Probably, by experimenting or activity based or by teaching someone. Since, it makes us do the things and know them better.

There is a school named St. Agnes in Arlington, Massachusetts, which tested a theory that you don’t need a Quotron or a Wharton MBA to excel in equities back in 1990s. The school gave virtual money of amount $250,000 to each team, consisting of 4 students of seventh grade. There were some rule before they can buy any stocks. The first and foremost rule was to give a presentation to the class as to why they are purchasing the stock. They need to explain the products or the services provided by the company. If they couldn’t explain the rationale, they are not allowed to purchase. Secondly the portfolio should have at least ten companies. Buying what you know is a simple strategy but neglected by most of the institutional players.

The portfolio made by the students out performed 99% of the funds of that time. Let’s discuss about the stock they purchased during that time. One of the stocks that they purchased was of Pentech International, a maker of colored pens and markers. Since the kids used those highlighters in their day to day life and were highly satisfied with the products. Further, they bought Nike as one of the students had lots of Nike sneakers and he convinced the group. Additionally they purchased Pepsi, which they saw at KFC and PizzaHut.

This little activity helped them to learn to read the financial newspapers and the annual reports. Since our country has come up with a new policy, they must include investing as a subject. We see most of the young generation running after stock market in today’s world to make quick gains.

You can complain that the students were lucky enough to pick the right stocks. From hindsight it is easy to say that, but they took the risk. Secondly, they were investing with virtual money, there was no real play. True, but it doesn’t mean it won’t work with real money.

If you have been wanting to learn something, figure out an activity related to the same or may be reach someone by blogging or vlogging. It will surely gamify the learning and will be a better experience.