Talking Bull with Carter Greenbaum

TVT sophomore is stock market maven.

Carter Greenbaum has taken the bull by the horns – the bull market that is. He touts the “Perfect Portfolio” on his website. And maybe it is… His portfolio, usually held semi-long-term, that is over the course of three months, holds companies that are for the most part, in the green. He puts out a newsletter, trades what he calls “riskier” stocks (no penny stocks please), provides up-to-date research reports on stocks in his portfolio, and has developed an equation that develops future trends in the stock market. So what makes this investor so special, other than the fact he is making money on some risky stocks when many of us are still too apprehensive to play the market outside of good solid blue chips?

Carter Greenbaum is just 15 years old.
Carter, a sophomore at Tarbut V’ Torah High School in Irvine is the Webmaster, author and portfolio manager of www.wallstreetwizkid.com. His equation, which he developed and provides him with the ability to predict trends, is one that he has worked on and used for the past two years to invest in his “mock” portfolio. The website also keeps a record of his trades and a copious explanation as to why he acts on the particular trades. Not something you will receive from your broker at Merrill Lynch or Morgan Stanley!

Carter has also taken his insight and market savvy to school. In October of 2005, at the beginning of the school year, Carter worked with his investment club to build a portfolio and “play” the market. The club, part of a statewide competition called the California State University, Fullerton, Stock Market Simulation, went before judges, displayed its methods of trading, and explained why particular moves in the market were made, all of which led to the team beating out thousands of teams in California. Over the course of two months, Carter and his team, made 56 percent return with their “mock” portfolio — a success almost unfounded among the ranks of both virtual and actual stock traders.

The simulation is a hands-on learning experience for high school students, promoting interest in the market, economics, and current events. Each team is given $100,000 in computer money to invest and trade stocks and/or mutual funds over a ten-week period. Carter and his team – using Carter’s equation and technical analysis — used only stocks and some cash (when things were really bad) to make up to one half a percent a day.
Holding the stocks for only one or two days, Carter used a method referred to in the brokerage world as “swing trading,” a method that is generally used by day traders or those not interested in the long-term benefits of holding a stock. Swing traders are not interested in the fundamental or intrinsic value of stocks but rather in their price trends and patterns. In other words, if you are careful, and know what you are doing, you can make a lot of money / return swing trading. Which, is what Carter and his team have (hypothetically) done. At the end of the 10-week competition, Carter’s strategy had increased the starting $100,000 to a portfolio worth $156,545.63. That was $7,000 more than the team ranking second.

Carter has put his competition experience to the test in the real world as well by interning at Commercial Capital Bank in the trading pit, risk management, and commercial loan processing. And his aspirations for the future are as high as his portfolio returns – Carter hopes to attend Yale or the University of Pennsylvania.

When you meet Carter Greenbaum, you forget that he is only 15 years old. Tall, confident, and mature for his age, Carter exudes the confidence in the halls of Tarbut that he puts into his portfolio. He has a strategy to pick the winners, and when asked about the success in what he has achieved with the program, Carter says, “Some may say it was luck, but I think I made the trades on my real belief that they were good moves.” When asked about what started his interest he states, “It stems from my first purchase of Disney stock as a child…”
Even in his early years Carter knew a good stock when he saw one. The market is a passion that has been with Carter since his early childhood – one that he has expressed throughout his educational career. In 8th grade, Carter was doing advanced mathematical projects on stock market fluctuations. In 9th grade, he entered a stock market fluctuation project in the Orange County Science and Math fair and placed second… He then moved on to the State fair and providing stock picks for his teachers.

Carter, the son of commercial collection attorney Martin Greenbaum and Orange County Federation President Jodi Greenbaum, is part of a committed and hardworking clan. His involvement and dedication to his trading mirrors the dedication of his parents’ commitment to the Orange County Jewish community. Go to just about any event in the Jewish community, and you will see either one, or both of his parents, Martin and Jodi Greenbaum. Carter also has two sisters, Leah and Reva, both of whom attend and are involved at Tarbut V’ Torah.

Carter believes in what he does – he is honest, hardworking, and people trust his picks. Perhaps Alan Greenspan said it best, “I have found no greater satisfaction than achieving success through honest dealing and strict adherence to the view that, for you to gain, those you deal with should gain as well.” If you know Carter Greenbaum, you have definitely made gains.

Investment Club Officers:
Vice Presidents:
David Katibian
Ron Nussbaum
Daniel Rabin
David Samson
Erica Shapiro
Treasurer:
Paul Lazarescu

To find out more about Carter Greenbaum’s portfolio and stock picks, go to: www.wallstreetwizkid.com

To find out about the competition and to see a list of competetors, go to: www.csusms.com

Lisa Grajewski is Director of Marketing, Development and Communications for Tarbut V’ Torah Community Day School.

For feedback, contact editor@ocjewishlife.com.