The ASX Game

Dear Scott,

My daughter recently brought home a consent form for me to sign. She is in Year 12 and, as part of Pathways and Wellbeing (PAW) this semester, the students are learning about investing in shares by playing the ASX Sharemarket Game. They are given $50,000 virtual money to invest over a 10-week period. Since reading your book in 2020, I have been investing in the ASX but not trading. My concern is that it is not focusing on long-term investment. So should I sign the form?

Meg

Hi Meg,

Yes, you should sign the form!

This sounds like fun … and I think your daughter will end up a winner.

Do you know why?

Because she’s going to have a secret helper with the ASX game:

Me!

Here’s how I’d suggest she plays:

Put $25,000 in the Vanguard Australian Shares Index ETF (ASX code: VAS). Or, if she prefers a greener option, the Vanguard Ethically Conscious Australian Shares ETF (ASX code: VETH).

Then put $25,000 in the Vanguard MSCI Index International Shares ETF (ASX code: VGS). Or, again, if she wants a sustainable option, try the Vanguard Ethically Conscious International Shares Index ETF (ASX code: VESG).

With those two investments she’ll own shares in the largest companies in Australia and the world, and all for rock-bottom fees. She can school her teacher and explain that the overwhelming evidence suggests that she’s all but guaranteed to outperform her stock-picking pals over the long run (though I’m talking years ... not weeks).

Then she can use the next 10 weeks to read The Barefoot Investor. In fact, I’ll donate a signed copy to the school library!

Scott.

Reminder: I first wrote about this years ago and highlighted the low costs. Today there are better deals on offer. How do I know? Because my readers constantly email me about them! So before you do anything, do a quick google.