The European center of finance can be found in a neighborhood of London called The City. In the Big Apple, Wall Street claims the crown as the international capital of all things related to money. In Vermont the hub of capitalism is … The Dorset School?
Every year, the Securities Industry and Financial Markets Association (SIFMA) conducts an annual contest called the Stock Market Game. The goal is to foster greater knowledge of financial markets to children of all ages. In the 2022-23 academic year, Vermont schools fielded nearly 300 teams in a statewide competition. In the middle school team category, The Dorset School captured not only first place, but also second, third and fourth.
“My 8th grade humanities class focuses on 20th century American History and we link the Stock Market Game to our study of The Depression,” says TDS teacher Nate Merrill. “We’ve been doing this for years and have had some winners, but never swept all the top positions. The kids are thrilled.”
The SIFMA Stock Market Game is all about the numbers. Teams of three or four participants are given $100,000 of imaginary money to invest over a three month period. Whoever delivers the highest return is the winner. Just follow the money.
Three girls made up the leading TDS Team: Marley Gallagher, Cat White-Bortell, and Olivia Gaudette. Unknowingly borrowing a page from Warren Buffet, the crew relied on research, familiar companies, and a strategy of investing and holding. Nike and Netflix are two examples of their portfolio.
“We looked at recent performance and stayed away from stocks that showed signs of volatility,” says one team member. “It wasn’t real money so the game was risk-free, but we didn’t want to take too many chances. We still wanted to win.”
The second place TDS team consisted of three boys: Weston Graf, Henry Mills-Whittelsey, and Finn Hjelt. At one point during the game, the trio of analysts decided to make a huge bet on an electric sport utility vehicle company. They sold off some of their stocks to increase their wager. “But just after our investment, there was a recall for defective seat belts,” says one member. “The stock tanked overnight.”
Fortunately the boys had some other stocks to help offset their major loss. “Our game was played during the fourth quarter around the time of Halloween,” says another male investor. “Halloween is all about chocolate so we took a look at Hershey. Our research indicated they did well every year in the fall. It worked!”
Do the TDS stock market gurus have any tips to offer to us mere mortals?
From the girls: “Research, patience and a bit of luck.”
From the boys: “Diversify!”
Is anyone pining for a career in currency?
“I never thought about that. Right now, I just want to get through 8th grade.”
Ah, pragmatism. It works every time.
