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Volume CXXXIII, Number 17 |
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Investment banking club shoots for hefty profits
JENNIFER BERNSTEIN
STAFF WRITER
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| Bryant Rich '06 is the president of the Investment Banking Club. The group discusses investment strategies, internships, and other information on the state of the economy in their weekly meetings. (Hans Law, Bowdoin Orient) |
The Investment Banking Club, which already has launched a stock-market competition in its first month, is providing members with informative meetings on internships and jobs, as well as interesting perspectives on the state of the economy.
"The club has been a great way to discuss the market outside of economics class," said Vice-President Ashley Conti '07. "You really don't have the opportunity anywhere else." Club founder and President Bryant Rich '06 also pointed to the practicality of having this forum. "It's a good way to get students to pay attention to current events," he said.
The outsourcing of jobs to China, the growth potential of Latin America and Asia, and the rising value of the US dollar are just some of the topics club members discussed during a relaxed but relatively sophisticated dialogue this Tuesday.
But the lesson of the day, it seems, was to avoid the "herd mentality" of senseless investment.
Such advice will probably be useful for the 15 or more students participating in the club's new virtual stock market competition. The contest, which began last week and will run until the first week of May, allows participants to compete against fellow club members in a battle for big money.
At the start of the tournament, each student receives 100,000 virtual dollars to invest. Although there is no official prize, the winner is still rewarded with the respect and admiration of fellow investors.
All students can register at no charge through game.marketwatch.com. Interested students should contact the Investment Banking Club for further information.
Although many Bowdoin i-bankers are playing it safe by investing in well-established blue chip stocks, many are hoping to strike gold in far less obvious markets. Students such as Ashley Conti '07 revealed their picks for the hottest companies this week.
"I invested my money in mining companies and also copper because I think that's going to be the next big industry," she said.
Conti, who thinks Latin America has the potential to emerge as a major economic player, also diversified her stocks and invested in the health sector.
Benjamin Rosen '07, who bought shares of several biotech stocks, believes the industry will see real profits in the next five to ten years if companies can patent new medicine. While these stocks have been somewhat volatile, he said that their current profitability will be tested in time.
"I look at which companies are projecting increased earnings, which companies are about to merge," Rich said. "Generally I stay away from blue chip stocks which do not fare well when the market is down."
Club vice president Alex Linhart '06, who is leading the competition with big gains last week, said that he did not have a particular strategy. "The key to my current successs, I believe, is luck," he said.
Rich hopes to schedule Bowdoin alumni who have worked in investment banking to speak to the club about the possibilities of entering the occupation.
Although such an event is still in the works, Rich has already contacted President Mills to help support alumni involvement and possibly raise funds that the club could invest.
Rich, who said he was unaware of the existence of the Business Club and Polar Consulting when he started the I-Banking Club, now senses that there may be some tension among the three groups.
He added that he has been in correspondence with some members of the Business Club, and the possibility of merging the two is still up in the air.
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