full transcript

From the Ted Talk by Richard Coffin: How do investors choose stocks?

Unscramble the Blue Letters

Investors aim to make mneoy by purchasing stocks whose value will iecsarne over time. Some investors aim simply to grow their money at a faster rate than itnalfion diminishes its value. Others have a goal of “beating the mrkeat,” which means girwnog their money at a faster rate than the clvmuuaite performance of all companies’ stocks. This idea of “beating the market” is a scruoe of debate among investors— in fact, investors break into two main groups over it. Active investors believe it is possible to beat the market by strategically snelcietg specific stocks and timing their trades, while passive investors believe it isn’t usually possible to beat the market, and don’t subscribe to stock picking.

Open Cloze

Investors aim to make _____ by purchasing stocks whose value will ________ over time. Some investors aim simply to grow their money at a faster rate than _________ diminishes its value. Others have a goal of “beating the ______,” which means _______ their money at a faster rate than the __________ performance of all companies’ stocks. This idea of “beating the market” is a ______ of debate among investors— in fact, investors break into two main groups over it. Active investors believe it is possible to beat the market by strategically _________ specific stocks and timing their trades, while passive investors believe it isn’t usually possible to beat the market, and don’t subscribe to stock picking.

Solution

  1. increase
  2. growing
  3. inflation
  4. source
  5. market
  6. cumulative
  7. selecting
  8. money

Original Text

Investors aim to make money by purchasing stocks whose value will increase over time. Some investors aim simply to grow their money at a faster rate than inflation diminishes its value. Others have a goal of “beating the market,” which means growing their money at a faster rate than the cumulative performance of all companies’ stocks. This idea of “beating the market” is a source of debate among investors— in fact, investors break into two main groups over it. Active investors believe it is possible to beat the market by strategically selecting specific stocks and timing their trades, while passive investors believe it isn’t usually possible to beat the market, and don’t subscribe to stock picking.

Frequently Occurring Word Combinations

ngrams of length 2

collocation frequency
investors aim 3
active investors 3
long term 3
faster rate 2
stock prices 2
passive investing 2

Important Words

  1. active
  2. aim
  3. beat
  4. break
  5. cumulative
  6. debate
  7. diminishes
  8. fact
  9. faster
  10. goal
  11. groups
  12. grow
  13. growing
  14. idea
  15. increase
  16. inflation
  17. investors
  18. main
  19. market
  20. means
  21. money
  22. passive
  23. performance
  24. picking
  25. purchasing
  26. rate
  27. selecting
  28. simply
  29. source
  30. specific
  31. stock
  32. stocks
  33. strategically
  34. subscribe
  35. time
  36. timing
  37. trades