Oren Shashoua Places 6th Nationally in the SIFMA Foundation’s Spring 2024 National InvestWrite® Competition

Ambitious Innovator Forges Path to Financial Freedom

through Investing 

Oren Shashoua Places 6th Nationally in the SIFMA Foundation’s Spring 2024 National InvestWrite® Competition 

New York, NY, October 11, 2024 – Oren Shashoua defied the odds by creating a high-powered investment portfolio that could make Wall Street proud. Currently enrolled in 11th grade at Paul D. Schreiber High School in Port Washington, NY, Oren developed a diversified investment portfolio aimed at securing long-term financial success during his sophomore year in the Spring of 2024.

 

Oren’s investment strategy placed him sixth in the nation in the SIFMA Foundation’s Spring 2024 InvestWrite competition. Oren triumphed among thousands of participants nationwide for his astute insights into the dynamics of capital markets in the high school division. Earlier this week, in recognition of his accomplishment, Oren and his teacher, Jennifer Herber, were honored by the SIFMA Foundation during a special ceremony.

 

The SIFMA Foundation’s InvestWrite national essay competition serves as a vital bridge between classroom education in mathematics, social studies, language arts, and the practical application of research and knowledge essential for saving, investing, and long-term financial planning. The competition is a culminating activity for the acclaimed Stock Market Game™, a curriculum-based financial education program challenging students to manage a hypothetical $100,000 online portfolio of stocks, bonds, mutual funds, and cash. InvestWrite empowers students to apply their hands-on learning in real-world scenarios that teach the fundamentals of investing.

 

SIFMA Foundation’s programs are proven to enhance participants’ test scores in math and economics, foster financial planning skills, promote teamwork and interpersonal social-emotional learning, and better prepare students for future academic and professional endeavors. With a steadfast commitment to closing opportunity gaps in society, the SIFMA Foundation equips young people from all backgrounds, with a particular focus on underserved youth, with a robust understanding of financial markets.

 

A number of studies have emphasized the critical need for financial education to navigate today’s complex economic landscape. Investing in financial education yields long-term benefits, both for individuals and for society as a whole, by fostering economic stability and reducing financial vulnerabilities, according to Financial Literacy and Financial Education, a recent study by Tim Kaiser and Annamaria Lusardi. It emphasizes the need for comprehensive and accessible educational programs from an early age. SIFMA Foundation’s programs are leading the way in reaching and engaging youth and their teachers and families.

 

“It brings me immense joy to extend my heartfelt congratulations to Oren and his teacher for a remarkable achievement in InvestWrite,” said Melanie Mortimer, President of the SIFMA Foundation. “Oren’s essay details a very thoughtful and compelling plan for long-term financial independence. His achievement signals the value of early financial education in setting youth on a path to positive financial life outcomes.”

 

The Spring 2024 InvestWrite competition posed the following challenge to 4th-12th graders: ‘Which investment in your Stock Market Game portfolio performed the best and why? Using this investment, recommend a diversified $25,000 portfolio of stocks, bonds, and/or mutual funds to save for a personal, family or community goal in the year 2030. Be sure to mention what your goal is.’

 

Thousands of volunteer financial professionals from hundreds of financial firms select the winners of InvestWrite each year. Oren captivated this panel of expert judges with a compelling and insightful essay.

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Winning Essay

 

It is essential to diversify your stock market investment portfolio in order to reduce risk, maximize possible profits, and develop a comprehensive investment plan. The effect of any one investment doing poorly can be minimized by distributing your investments throughout a variety of asset classes and industries. By taking advantage of different market risks, this not only reduces the overall risk of your portfolio but also raises the possibility of bigger profits, offering a more reliable and well-rounded approach to investing in the end. In The Stock Market Game, my team and I tried to replicate a diversified portfolio with a mixture of technology companies and consumer staples. In addition to this, we invested in some mutual funds and bonds.

 

Nvidia is one of the stocks I recommended my team invest in. Because of its dominance in artificial intelligence (AI) and graphics processing units, Nvidia is an attractive investment. With AI transforming everything from healthcare to driverless cars, Nvidia is leading the way in computing AI algorithms and computations. Nvidia's strong hardware solutions and deep learning experience put it in a good position to take advantage of the increasing market for AI-driven products. Furthermore, Nvidia is a viable investment for long-term development since it is a key enabler of AI infrastructure, which is important given the increasing growth of AI applications across sectors. Nvidia has demonstrated exceptional strength in the stock market as well over the last couple of months, marked by a significant surge in its stock price. When my team and I started the Stock Market Game two months ago we noticed Nvidia’s outstanding performance over the last year. We noticed Nvidia’s Beta was around 1.5, meaning it is more volatile than the market, which could give us a higher return on our investment. We also noticed that the one-year target estimate price of the stock was going to reach about $900 so we concluded that this stock is expected to grow in value. At the time when we were considering the investment, the stock price was $720. The PE ratio of the company was also around 60 indicating furthermore that this stock is a growth company, meaning we would have to take a risk as investors. After this research on Nvidia, we decided to invest in 15 shares. Recently, we sold Nvidia and we made 5.5% of our investment, making us a $900 profit. I would recommend investors invest in Nvidia due to its dominance in AI and the growth potential of the company.

 

My investment goal by 2030 is to make enough money to pay off any or part of college student loans I would have. It would be a great idea for this goal to create a diversified portfolio, a collection of investments across various asset classes, such as stocks, bonds, and real estate, as well as different sectors and geographic regions, aiming to reduce risk and enhance potential returns by spreading investments across a range of opportunities. I would allocate $25,000 to 80% stocks and 20% bonds. Firstly, I would continue investing in Nvidia, as I believe in its growth potential. A second sector which I believe has a lot of potential is renewable energy due to its environmental benefits and our growing energy needs as a society. As a second investment, I would invest in Array, a company that makes solar trackers for utility scale solar projects. Solar trackers help move the solar panels toward the direction of the sun as the sun moves. Due to AI’s growth over the last few years many people are trying to find new ways to efficiently power infrastructure. The Energy Information Administration (EIA) estimates that 80% of new power supply in 2024 will come from solar energy, which is in high demand due to its abilities in efficiently powering the world. For the bond portion of my portfolio (20%), I would invest in a municipal bond that matures by the year 2030 which matches my investment target date. As an investor in municipal bonds, one does not pay federal, state, and local income taxes on the interest earned. For example, I would invest in an upcoming bond issue by the New York City Municipal Finance Authority, which is Water and Sewer Revenue Bonds. This bond is rated AA1/AA+, which is the second highest credit rating possible. It is a safe investment, and I will not be paying any taxes on the interest income earned, making it a good investment for my portfolio.

 

I believe I have created a portfolio that is balanced both from a risk perspective as well as earning potential which will help me in the goal of paying off student loans. My portfolio is investing in two growth sectors of the market namely technology/AI and renewable energy. AI is being used in so many different applications by various companies around the world so its growth potential is very high. Solar energy is also in high demand around the world due to its efficiency making its growth value very high. I am also investing in a traditional part of the market known as the municipal bond market which will provide a more predictable source of income.

 

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