Student’s Name: Vishal Patel
Course #/Section: 33
Note: Complete all parts of the Informative Speech Outline. Review relevant readings and lectures on: Audience Analysis, Researching Your Speech, Supporting Materials for Your Speech, Organizing Your Speech, Outlining Your Speech, and Informative Speaking. Also, refer to the “Sample Informative Speech Outline” as an example of an outline that meets the requirements, as well as the “Informative Speech Outline Rubric” to understand the instructor’s expectations and grading criteria.
Planning for the Informative Speech with Analysis
Speech Topic: Value Investing
Rhetorical Purpose: To inform my audience about . . .
Value investing as a way to grow money for retirement and to combat inflation.
Audience Analysis:
(Refer to chapter on Audience Analysis)
(RU Core Goal: a) Summarize Audience demographics, prior exposure/knowledge, common ground/interest, disposition/attitude, and situational characteristics.
The audience is composed of all sophomores in varying avenues of study, but I think the ideas of purchasing power, savings, and investing for retirement can relate to everybody because that is something that everybody needs to think about eventually, especially after getting a job or saving up for retirement.
Informative Technique(s):
(refer to chapter on Informative Speaking) Definition, explanation, description, demonstration, and/or narrative? Please explain.
I will use definitions and explanations for my topic. I have to define value investing and the concept of stocks to my audience in order to get into how to actually execute value investing.
Organizational Pattern:
(refer to chapters on Organizing Your Speech & Informative Speaking) Spatial, chronological, causal, comparison, criteria-application, narrative, or topical? Please explain.
I will use a topical explanation style because there are several basic ideas within value investing that I can use for my mains points, such identifying value and how straightforward it is to understand.
Message:
(refer to chapter on Informative Speaking) How do you plan to simplify and/or clarify your message? (e.g., general to specific, reduce quantity of information, draw analogies, reiterate message, repeat message) (Note: presentation aids are not required for this speech other than ‘speaker notes’).
I plan to draw analogies and explain basic concepts in detail in order to help the audience better understand the concepts related to value investing.
Types of Supporting Materials:
(refer to chapter on Supporting Materials) What types of supporting materials do you plan to include? (e.g., examples, definitions, testimony, statistics, narratives, analogies)
I plan to include statistics and testimony from professionals in my speech. I also plan to use images in my presentation for people who learn visually rather than by hearing.
Types of Research Sources:
What types of research sources (e.g., primary, secondary, and/or tertiary) do you plan to use to support the thesis statement and main points? Please explain. Note: 5 credible and relevant sources are required including at least 1 source from a Rutgers University Libraries periodical database.
I plan to use primary and secondary data. This is because I am discussing a philosophy, so there is no better way to explain the philosophy than presenting the philosophy itself and the discussion of the philosophy given by other sources.
Research Tools Utilized:
(refer to Comm380 research guide – http://libguides.rutgers.edu/
publicspeaking)
(RU Core Goal: y) What tools did you use during your research to find your sources? (e.g. Google Scholar, Library Databases, Book or Journal resources, etc.)
I have books about value investing that I have read and I used the Rutgers database search to find certain statistics in the Global Financial Data database.
Selection and Review Process:
How did you select the sources you plan on using for your speech? What criteria did you use in making your determination?
I started out with a plan from my experience value investing and I found reputable sources that support my ideas. Ultimately, I looked for inflation data and simple ideas that are repeated by professionals to stress the importance of value investing.
Informative Speech “Working Outline”
Introduction
Write in complete sentences. Refer to chapter on Outlining Your Speech.
I. Attention Getter:
According to the global financial database and the Bureau of Labor Statistics, the average national inflation for the year of 2017 was 1.8%. As a result, if our bank accounts were stagnant for that year, at the end of the year, we lose 1.8% of our purchasing power because it takes 1.8% more money to buy items. So, how can we combat inflation and grow our money to protect our purchasing power?
II. Thesis Statement: One way to grow our money is value investing, which is a philosophy that seeks value in cheap or underdog companies.
III. Connection with Audience: Sooner or later, we will all have to save for retirement and we must protect our retirement funds from losing value due to inflation. In addition, we must grow our retirement funds to meet our retirement goals, which is why investing is important.
IV. Speaker’s Credibility:
I have experience investing my own money and I hope to share some things I have learned in my successes and failures that might help all of you start growing your money.
V. Preview of Main Points:
Value investing is not a hard concept to understand and anyone can be an investor, but there are common mistakes that a lot of investors make that you need to be aware of.
Body
Write in complete sentences. Important: Include evidence in sub-points, as applicable (i.e., refer to source in each sub-point by paraphrasing, quoting, or summarizing with a citation following APA format – 6th edition), and insert transitions between main points. Refer to chapters on Researching Your Speech and Outlining Your Speech.
I. Main Point One: Value investing is the process of comparing possible investment choices based on stability and relative cheapness.
Sub-point A: (w/source citation, if applicable) A stable company is one that can pay off all of its immediate (SHORT TERM) debts at any point in time and can generate a sustainable stream of revenues and profits. The sustainable stream of profits is considered value in value investing.
Sub-point B: (w/source citation, if applicable) A stable and valuable company also has an economic moat. According to Pat Dorsey, director of stock analysis at Morningstar, an economic moat is anything that protects a company’s profits from competitors. This can be a patent that protects a type of product a company manufactures or it can be a government contract that allows them to be a provider over other companies.
Sub-point C: (w/source citation, if applicable) For comparing cheapness, an indicator can be used called the price to earnings ratio. If you divide the stock price by the profit earned by the company, the result is the price you are paying for $1 of that company’s earnings. Benjamin Graham, considered the father of value investing, recommends setting a limit of 25 times earnings as too expensive for a stock. In general, less than 16 times earnings is considered relatively cheap.
Transition: This seems like a lot of work and analyzing, but anyone can do it.
II. Main Point Two: Despite the research that needs to be done, you do not need to be a professional to invest with this method.
Sub-point A: (w/source citation, if applicable) All you need to have is basic accounting knowledge to read financial statements. This can be learned easily online or through an intro to financial accounting course.
Sub-point B: (w/source citation, if applicable) Peter Lynch, the legendary investor who consistently beat average market returns, argues that an investor should only buy what they understand. He believes that we can use everyday knowledge and use of technology to learn about companies and invest in them. What better way to understand Apple’s quality than by experiencing their products first hand?
Sub-point C: (w/source citation, if applicable) Pat Dorsey argues that anyone armed with basic accounting knowledge can sift through financial statements that are released to the public by corporations. If you are researching a company, you can find their financial statements on the website of the SEC, the securities exchange commission.
Transition: So, you have the tools to be investors, but there are some mistakes that investors make when starting out.
III. Main Point Three: There are several common mistakes that investors including myself have made that you should try to avoid when investing yourself.
Sub-point A: (w/source citation, if applicable) Too many investors have made the mistake of buying high and selling low. They see a stock rising rapidly and without regard for researching the company or trying to seek value, they try to hitchhike off the rise of the stock. However, this is not a good method because if the company only rises to your buying price you will be stagnant and it could very well decrease from that high price. The problem with this is that with a rising stock, you will not know the final price and it could be higher or lower, but if you find a stock that you see value in decreasing, then it will likely increase sometime in the future.
Sub-point B: (w/source citation, if applicable) Phillip A. Fisher, an investor praised by Warren Buffett, argues that investors should not follow the crowd. An example demonstrating this advice is the dot com boom in the 90’s. With the rise of internet commerce, several companies that were worthless, but involved with internet had bloated stock prices, and when several investors realized that a lot of those companies were being artificially inflated on the stock market, the bubble popped. So, seek your own value and do not follow the herd.
Sub-point C: (w/source citation, if applicable) According to Pat Dorsey, hold your stocks for the long run, which is at least 1 year, and do not trade frequently. With frequent trading, you can easily rack up serious trading fees. In addition, with selling before 1 year, you incur a short-term capital gains tax on your profits, which is more than double the long-term capital gains tax rate.
Transition: With these mistakes in mind, you will definitely be better prepared for investing.
Conclusion
Write in complete sentences. Refer to chapter on Outlining Your Speech.
I. Summary of Main Points:
Value investing isn’t complicated and anyone can do it, but individuals should be aware of common mistakes and try to avoid them.
II. Clincher: According to the Economic Policy institute, “nearly half of families have no retirement account savings at all”. Hopefully, now armed with knowledge of investing, you can start to grow your money and protect your purchasing power from inflation in order to have a brighter future.
Reference List
(RU Core Goal: u)
Include a complete Reference List (i.e., Bibliography) for five (5) research sources including at least 1 source from a Rutgers University Libraries periodical database that was referenced in the Main Points (sub-points). All sources are to meet the 6 criteria: expertise, objectivity, accuracy, currency, origin, and relevancy. The Reference List is to follow APA format style guidelines (6th edition). Refer to the chapter on Researching Your Speech, and also the APA Resources at the end of this document.
Full Citation I: (CPUSAM) United States BLS Consumer Price Index Inflation Rate NSA. (n.d.). Retrieved September 30, 2018, from https://www-globalfinancialdata-com.proxy.libraries.rutgers.edu/GFDPlatform/.
Full Citation II: Barnes, R. (2018, April 10). Pick Stocks like Peter Lynch. Retrieved from https://www.investopedia.com/articles/stocks/06/peterlynch.asp
Full Citation III:
Dorsey, P. (2004). The Five Rules For Successful Stock Investing: Morningstars Guide to Building Wealth and Winning in the Market. Hoboken, NJ: John Wiley.
Full Citation IV:
Graham, B. (2003). The Intelligent Investor: The Definitive Book on Value Investing. New York: HarperBusiness.
Full Citation V: Fisher, P. A. (1997). Common Stocks and Uncommon Profits. New York: Wiley.