Investing 101 QUIZ - 2024

What did Raymond study at University?

• BA in Economics and History

• LLB/Diploma in Business (Finance)

• BSc in Mathematics and Physics

• BE(Hons) in Civil Engineering

What is the name of Raymond’s Company?

• Berkshire Hathaway Inc.

• Equity Corp.

• Industrial Equity, LLC

• Low-Risk Investments Inc.

What does Industrial Equity, LLC invest in?

• US stocks and bonds

• Cryptocurrency

• Real Estate Investment Trusts (REITs)

• NZX Top 50 ETF

What does Raymond say about leaving your job?

• The grass is always greener

• There is no need to maintain relationships because you will never see your workmates again.

• Try to leave on good terms because you may end up working with someone again.

• Never leave your job

Which statement best describes ‘value investing’?

• Investing in stocks or other instruments priced below their intrinsic value.

• Investing in ‘cigar butt’ stocks which offer a quick return

• Investing only in technology stocks because they are the most valuable

• Investing in companies which sell high-value products

How to calculate a company’s Earnings Per Share (EPS)?

• Revenue minus Expenses

• Profit before Interest and Tax (EBIT) / Average Total Assets

• Net Profit after Tax / Shares Outstanding

• Total Liabilities / Total Assets

Charlie Munger died in November 2023, aged 99. Who was he?

• Former Chairman of the US Federal Reserve

• Author of “Margin of Safety”

• Former Professor of Law at the University of Auckland

• Business Partner of famous investor Warren Buffet

When the market interest rate declines, what happens to the price of existing bonds?

• They stay the same price

• The price rises

• The price falls

• Its impossible to tell – the Prime Minister sets bond prices after each Cabinet meeting.

Who would Raymond choose for his KiwiSaver provider?

• The UAIC Investment Committee

• KiwiBank

• Tower Insurance

• SuperLife

What DOESN’T Raymond say about being a successful investor?

• Steadily add to your investments over time

• Contribute at least $1042.86 to KiwiSaver annually

• Always try to ‘time the market'

• Read a lot: books on investing and company reports