The
highs
and
lows
of
the
stock
market
are
not
for
the
faint
of
heart,
but
members
of
BW's
long-running
Investment
Club,
who
manage
a
designated
piece
of
BW's
endowment,
have
faced
bear
and
bull
markets
with
the
poise
of
seasoned
finance
pros.
The
value
of
the
club's
investment
portfolio
has
grown
from
about
$160,000
back
in
2006
to
more
than
$640,000
today,
with
fluctuations
along
the
way.
"The
investment
strategy
of
the
club
focuses
on
long-term
investing
and
passive
management,"
explains
current
club
president
Joe
DiLiberto
'20.
"The
portfolio
experienced
many
ups
and
downs
since
it
was
first
established
but
continues
to
be
profitable
over
a
long
time.
Many
great
investment
decisions
were
made
in
the
past
to
get
where
our
portfolio
is
today."
Pandemic
Fall,
Rise
as
Teaching
Moment
DiLiberto,
a
finance
and
accounting
major,
says
the
market
crash
in
the
early
days
of
the
pandemic
is
the
latest
white-knuckle
event
faced
by
club
members.
But,
it
has
turned
out
to
be
an
opportunity
to
learn
about
the
unpredictable
nature
of
the
markets.
"The
portfolio
took
a
huge
hit
back
in
March
and
the
value
went
below
$300,000.
We
were
unable
to
access
the
Bloomberg
terminals
in
Kamm
[Hall]
and
could
not
conduct
our
usual
analysis.
We
held
everything
that
we
had,
and
the
portfolio
started
to
increase
in
April,"
DiLiberto
recalls.
"The
members
were
confused
about
why
the
stock
market
kept
going
up
while
the
economy
was
suffering.
The
Fed
continued
to
pump
up
the
market
with
stimulus
and
fiscal
policy.
The
interest
rates
are
near
0%,
so
many
people
do
not
want
to
put
money
into
the
bank
because
CDs
and
bonds
do
not
pay
as
much."
He
continued,
"The
second
quarter
this
year
resulted
in
one
of
the
best
quarters
for
stocks
ever
percentage-wise.
Technology
stocks
thrived.
Job
reports
were
better
than
expected.
Despite
the
coronavirus
and
high
unemployment,
the
market
moved
higher
due
to
stimulus
and
liquidity.
The
performance
of
the
stock
market
this
year
became
a
great
learning
experience
for
everyone
in
the
club."
How
the
Club
Works
and
Where
the
Buck
Stops
DiLiberto
says
Investment
Club
is
open
to
any
student
regardless
of
major.
Each
member
is
required
to
research
and
present
a
stock
for
members
to
consider.
A
lot
goes
into
each
pitch.
"A
stock
pitch
includes
an
investment
thesis,
industry
analysis
and
outlook,
company
overview,
company
news,
financial
performance,
earnings
and
estimates,
ratios,
SWOT
analysis,
technical
analysis
and
analyst
recommendations,"
DiLiberto
details.
Buy,
hold
and
sell
decisions
are
made
by
voting
members
with
the
mentorship
of
faculty
adviser
and
finance
professor
Dr.
Christian
Nsiah,
who
vets
the
presentations
for
accuracy.
"Dr.
Nsiah
may
provide
guidance
and
feedback
on
the
pitch,
but
the
students
decide
whether
to
buy
or
sell
a
stock,"
DiLiberto
says.
Outlet
for
aggressive
investing
DiLiberto
notes
that
students
do
have
an
opportunity
to
be
less
conservative
in
their
investing
by
competing
each
semester
using
the
Investopedia
Stock
Simulator.
"Students
are
more
aggressive
in
the
simulation
than
when
managing
the
endowment
fund.
In
the
simulation,
students
can
invest
in
any
stock,
trade
options
and
short
stocks."
A
prize
is
awarded
for
the
club
member
in
first
place
when
the
simulation
is
halfway
over
and
when
the
simulation
ends.
Career-Boosting
Experience
DiLiberto
considers
the
Investment
Club
a
highlight
of
his
time
at
BW,
one
that
helped
define
his
career
path.
"I
have
learned
a
lot
about
how
to
analyze
stocks,
make
smarter
investment
decisions,
understand
how
the
markets
work
and
control
personal
finances
in
my
own
life.
One
of
my
main
career
aspirations
now
is
to
help
people
achieve
their
financial
goals."
The
club
also
gave
him
friendship,
a
faculty
mentor
and
a
full-time
job
offer
months
ahead
of
his
December
graduation.
"This
fall
semester
is
my
final
semester
at
BW
and
being
involved
in
Investment
Club
has
helped
me
get
an
internship
and
a
full-time
position
after
I
graduate.
I
have
learned
so
much
and
made
many
great
friends."
