The Competition Basics

Need a plan of attack for your KWHS Investment Competition journey? In addition to consulting your Guidebook (which you should read very carefully), here’s a step-by-step guide to navigating this year’s KWHS Investment Competition.

  • Student teams (4-7 students) should locate a teacher, parent, professional or other advisor to help them learn the concepts and stay motivated during the 10 weeks. Our goal is for you to improve your teamwork, communication and finance skills.
  • Read the KWHS Investment Competition case study. In this competition, you are competing to win the chance to manage Sachin Rekhi’s wealth. You can’t proceed with building an effective strategy for a client without first understanding that person (i.e., his risk profile).
  • Meet with your team and your advisor to discuss what it means to build a long-term investment strategy for your client. The KWHS Investment Competition is NOT a trading competition that requires lots of buying and selling of stocks. Your team must build a creative and compelling strategy to win, not increase the value of your portfolios. There is a small segment of your client’s portfolio that can be put toward more active trading.
  • You may need a few weeks of classroom time and discussion before you begin trading on OTIS. Many students are new to these concepts, and therefore will only be able to compete effectively if they understand more about investing and the stock market.
  • Together, your team and your advisor should review the investment rules of the competition, which you must follow as you start to use the OTIS online trading and investment simulator. This may also be a good time (if you haven’t done so already) to identify different roles for your team members. What are your individual strengths? Who will be in charge of which sectors/industries? How will you divide the labor of your team?
  • As you begin to develop your strategy, you should also begin analyzing sectors, industries and stocks on the Approved Stock List. Which stocks best fit your strategy? You will need to do some detailed analysis before you just start trading. This is where the resources on the site will help you to understand what it means to analyze stocks. Learn about SWOT analysis, Porter’s Five Forces, and so much more. As you communicate with your team, your strategy will likely grow and change.
  • You shouldn’t be active on the OTIS online trading and investment simulator until you have an idea of the stocks you want in your portfolio. Remember, this is NOT a trading game. Instead, you will likely buy the stocks that fit well with your strategy and then hold them, which is important to a long-term investment strategy. Perhaps you may want to change a few here or there as your strategy becomes clearer over the 10 weeks. But you should not be buying and selling frantically to improve your portfolio gains. You are not trying to prove the worthiness of your team’s long-term client strategy through your portfolio’s performance on OTIS. You can’t do that in 10 weeks! However, as the case study states, you do have a small trading portion to satisfy your client’s need.
  • At the 5-week mark (Nov. 5), you need to submit a mid-project team review. This is required if your team wants to stay in the competition. How has your strategy progressed? This document is a brief overview of your strategizing, portfolio development and team dynamic thus far in the competition. Given the time it sometimes takes to develop a team’s ideas, you may just be starting to buy stocks for your portfolio at this point. Some will start sooner, but there is no rush to OTIS since this is not a trading game. It’s more important to understand the concepts, think carefully about your unique team strategy, and get to know your team members.
  • Use the final 5 weeks of the competition to continue learning new concepts, refine your strategy, continue your analysis, discuss the strengths and weaknesses of your portfolio from both a long-term and short-term perspective, figure out if changes need to be made, and communicate regularly as a team. It may help you to keep a written log of your decisions and competition experiences along the way. The more detail and color in your final report, the better.
  • On December 17, you must submit a written report articulating your team strategy (begin by stating clearly and briefly the thesis of your strategy) and your competition experience, everything from your teamwork and trading to your analysis and strategizing. Your guidebook will provide details on the final report. While strategies must include certain truths about your client, there is no right or wrong team investment strategy. We encourage you to be creative and use what you have learned to reflect your unique team approach.

Knowledge@Wharton High School Investment Competitions