THE COW STORY

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THE COW STORY
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On a Piece of Paper write down the months June
through July and the amount invested Each month
as shown below

• 100 - ____ Cows
• 100 - ____ Cows
• 100 - ____ Cows
• 100 - ____ Cows
• 100 - ____ Cows
• 100 - ____ Cows

• JUNE
• JULY
• AUGUST
• SEPTEMBER
• OCTOBER
• NOVEMBER

3
JUNE

• Your goal is to invest 100 a month
• Our suggestion is to buy cows, right now cows are
  100 each
• You give us 100 and you have bought 1 cow

4
JULY

• You invest the same 100 as you did in June
• Oprah comes on T.V. and talks about how bad beef
  is for you.
• The price of cows goes down to 50 per cow
• You start to get nervous, and we explain that
  people have been eating beef since the cavemen

5
AUGUST

• You invest the same 100 as you do every month
• Oprah is still bashing beef
• The price of cows stays at 50 per cow
• You start to get a little more nervous, however,
  you we continue to coach you.

6
SEPTEMBER

• You invest the same 100 as you do every month
• Now the FDA announces the beef industry has been
  hit hard with Mad Cow Disease
• The price of cows drastically drops to 25 per
  cow
• You really start to panic!!!
• We tell you to relax, sit tight, and explain how
  people have been using leather from cows since
  the cavemen.

7
OCTOBER

• You invest the same 100 as always.
• Oprah retracts her previous statement and praises
  the effects beef has on keeping you healthy.Also,
  the american beef association begins a massive ad
  campagn.
• The price of cows goes back up to 50 per cow.
• Now you are starting to feel a little better.

8
NOVEMBER

• You invest the same 100 as you always do
• The FDA announces that the mad cow disease is now
  under control and beef is better than ever
• You now get 1 cow.
• What a ride! Get me off. This investment never
  even went above the 100 it started out at you
  shout, as we begin to explain Dollar Cost
  Averaging and How Mutual Funds work.

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THE COW STORYResults

• JUNE
• JULY
• AUGUST
• SEPTEMBER
• OCTOBER
• NOVEMBER

• 100 1 COW
• 100 2 COWS
• 100 2 COWS
• 100 4 COWS
• 100 2 COWS
• 100 1 COWS

Invested 600
Cows owned 12 at 100 each
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YOU NOW HAVE 12 COWS
MOOOVE OVER
600 PROFIT
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WHAT HAVE WE LEARNED?

• Your total investment was 600 you now have
  1200 worth of cows.
• When you started cows were 100 each, when the
  market fell you wanted to take your cows and run.
• This is when we stress time in the market is more
  important than timing the market.
• By keeping your cows in the corral through the
  ups and downs you doubled your money.
• You would NOT have seen this return in a market
  that only went up!
• Historically over time the market will prove
  successful.

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This is Called Dollar Cost Averaging(its how
mutual funds work)

• Mutual fund are sold in UNITS (cows). As the
  stock market goes down, so does the unit value of
  the mutual fund. As long as you are investing
  consistantly, you are buying more units (cows).
  As the price of the stocks increase, so does the
  value of the mutual fund units, and you therefore
  increase the value of the units owned.
• Its like buying on sale. (Everybody Loves a
  Sale).

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THIS AINT NO BULL!!!!