When someone hears that there’s a student investment group on campus, the first question that might come to mind is whether the group uses real money.
This one does.
“We are not dealing with chump change,” junior business major Ben Buzbee said.
In fact, the University Investment Group receives $50,000 per year from D.A. Davidson & Co., a brokerage firm in Portland, to invest in the stock market after analyzing industries and companies.
Since the group was created in 1998, it has had great success, Buzbee said. In its first six months, the group was making a 15 percent profit, he said. If the group earns more than 5 percent of the money invested, it divides the gain with D.A. Davidson. The group usually donates its gains to the University’s Finance Department.
Russel Tennant, the branch manager of D.A. Davidson’s Portland office, said the student group provides real-world opportunities that students can’t get in other places.
The organization, which was founded by three students, now has 16 members. It is governed by three co-directors: business majors Mark Rollins and David Stout, and accounting graduate student Jeremy Potts.
Stout, the director of information for the group, said he takes pride in the organization and sees the opportunity to invest real money while still an undergraduate as amazing.
Stout said students spend hours researching and analyzing different industries and stocks and preparing recommendations on which stocks to invest in. After presentations on stocks and industries, the group takes a vote. The decision of the majority determines how the money is invested.
The group is currently investing in a variety of companies, such as Lucent Technologies, Centennial Bank and Monaco Coach. Stout said the group prides itself on making wise investments.
Active membership in the investment group gives students incredible opportunities in the job market, Stout said. The group’s work with D.A. Davidson has been one of the best parts of the experience for him, he said.
Cindy Burg, a D.A. Davidson analyst and the company’s adviser to University students, said investing is not as easy as it looks, and these students have had the opportunity to ride the wave of the investment world. She added that it takes a lot of time and effort to make investments, and the group has definitely worked hard.