Marin students win simulated scholarship competition

A five-person team at Terra Linda High School in San Rafael has won first place in a student investment competition in the stock market.

Seniors Nicole Gutierrez, Bob Huang, Daniella Reyes, Anthony Spinozzi and Aidan Sumner posted $78,000 in 10-week profits last semester, making imaginary trades each week in stocks, bonds, mutual funds, and other investments, starting with a notional $100,000 delivered in cash through an online app called the Stock Market Game.

That was enough to beat about 4,500 other teams statewide, said Randall Baker, the students’ economics teacher. Baker said Terra Linda teams have been battling in the game for 13 years without a title.

“The fact that our TL student team took first place in such a competitive simulation is a real reason to celebrate that it is such a hard thing to do,” said Jim Hogeboom, Superintendent of San Rafael City Schools. “Many of these students have decided to pursue careers in business to further their interest in economics, and we are so proud of them and of the teacher, Randy Baker.”

The game, which tracks each team’s simulated portfolio, transactions and earnings online, is provided by a foundation administered by the Securities Industry/Financial Market Association, or SIFMA.

“These guys looked at all the other high schools in the state to see how far they had to go to get No. 1,” Baker said. “They didn’t see the wallets, they just saw the total amount.”

During each weekly class, Baker said, he asked the team to make one trade. He provided them with links to reports and other research to help them make their decisions.

According to the team members, timing, monitoring the market daily, reading global news reports and doing extensive research were the keys to their victory. In addition to keeping track of the New York Stock Exchange and NASDAQ, students also read annual, semi-annual, and quarterly earnings reports from the various companies.

“In the beginning we were long on oil supplies,” says Spinozzi, 17. “We came in first with $129,000, and then I got sick, and we didn’t sell on time, and it tanked.”

When Spinozzi got back in class, the other schools were at $160,000 and Terra Linda only had $115,000 compared to the original $100,000. However, the team was able to win back $60,000 within a week and a half, Spinozzi said.

Gutierrez, 17, said she enjoyed the experience and would like to continue investing. Both she and Huang said teamwork was the most important element.

“The most fun part was working as a group and seeing which stocks to invest in,” says 18-year-old Huang.

Sumner, 17, said he learned the most during the research, particularly about using corporate earnings reports to make investment decisions.

“We looked at the undervalued stocks that we thought would rise,” he said. “We reviewed their quarterly reports.”

Spinozzi said he plans to pursue a career in finance.

“I want to do private equity or investment banking,” he said. “They are very lucrative careers.”

In addition to the investment tips, Baker said he also taught the class about personal finance. That included budgeting strategies, managing a checking account, and being disciplined with credit cards. He also taught the class about supply and demand.

“It’s real-world knowledge that they’re going to need when they leave high school,” Baker said.

According to the SIFMA Foundation, the Stock Market Game is designed to help students learn firsthand the value of long-term investing while also increasing their knowledge in math, economics and personal finance. The game has been active since 1977.

It is an honor to partner with local schools to provide resources that equip young people in our communities with the critically important skills they need to succeed in their careers and family lives,” said Melanie Mortimer, President of the SIFMA Foundation .