The club was full of announcements this week, and we got right to them in our general body meeting. First off was the reiteration of Lafayette’s Dyer Center-sponsored Real Estate Boot Camp – club co-president Dave Perron ’19 talked logistics. Next, Henry Lewand ’21 had an update of the club’s stock market game.
Brett Berger ’22, Emmett O’Toole ’20, and Connor Thatcher ’21 took over the market update this week, covering the market’s general recovery from the previous week’s downturn. One of our most recent purchases, Citizens Financial Group, was up 5.00% on the week. The trio also covered housing stocks’ touch year, owing to rising interest rates making borrowing more expensive, the 10 year treasury yield rising, and the impact of tariffs. While the sector is above the dismal returns of 2007 and the ensuing housing crisis, it will continue to perform below average for some foreseeable future. The group also covered PayPal’s positive news, Uber’s valuation and anticipated IPO, and wrapped up with some Saudi Arabian news that ties back to finance.
Chairman Jeff Sikorsky ’19 and Head Analyst Mac Erb ’20 reviewed a general trim of positions in the portfolio, mainly relating to old purchases that need to be reviewed or have already been deemed obsolete. The two encouraged more people to get involved in crafting the portfolio to modern standards in addition to their general overview.
As always, here’s the complete presentation: General Body Meeting 10/19/18
Our fall break didn’t stop the club from hosting its weekly general body meeting this week, with an agenda ranging from our standard market update to an in-depth look at recent and historical interest rates and their consequences on the market at large.
Jesse Glaser ’19 and Luke Cummings ’19 gave us the low-down on the week’s market news and developments. Highlights included rising interest rates, tech stocks’ supply chain issues, increased volatility, and a general weekly downturn for all three major indices.
The club’s look at interest rates focused specifically on the 10-year yield increase from 3.25% from 2.82% just two months prior, along with the yield curve inversion and historical tracking, and what consequences are attached.
Other news touched on included inflation updates, with the CPI rising 2.2% year over year, China’s trade surplus in September, Sears’ continuing downfall, and various activist investors’ attempted interventions.
Emmett O’Toole ’20 wrapped up the meeting with a mock interview question, posing the following: What is the expected value of a roll of a die? Beyond the actual question, Emmett talked about how to walk through your resume in an interview, different market-based questions, and an example stock pitch.
See the full presentation here: General Body Meeting 10/19/18
Jeff Sikorsky ’19 and Sam Kirby ’22 got going with the market update this week, covering Paul Russo’s leaving Goldman Sachs, Wells Fargo job cuts, Google privacy concerns, McDonald’s EU union news, Amazon personal data concerns, and Treasury surprises. See more here.
Next, Alec Cwienkala ’21 and Connor Thatcher ’21 went up to bat with a buy pitch for Citizens Financial Group (CFG), a consumer/commercial bank they argued to be undervalued, among other attractive factors. The pitch was embraced by the club and successful.
The last segment of the meeting came from Jesse Glaser ’19, who presented an example interview question: one of the market sizing and “guesstimate” types. Jesse’s important takeaways were that while one can stress about getting the exact answer right, the point of these questions is to make sure the interviewee can break down a complicated question into different factors and explain their thought process. See the exact question and Jesse’s model answer in the presentation below:
9/21/18 Investment Club Presentation
The agenda for September 14th’s meeting came in the form of a market update, stock pitch, and Tesla update/overview.
Two freshmen, Greg Giraldo and Brett Berger, spearheaded the effort in the market update, extensively covering recent Apple news, a slew of Chinese firms including electric car maker NIO, Alibaba and Jack Mao, and Tencent, a company the club has covered before in its weekly updates. More info can be found in the actual presentation slides.
Next, Keon Modeste ’21 and Colin Evanko ’20 pitched buying Vicor, and industrial electronics firm based in Massachusetts. After an in-depth look at company financials, executives, and future promise, the club voted to buy about $7,000 worth of Vicor stock (VICR) at approximately $53/share. As always, more information can be found in the presentation.
Finally, board members Emma Bodner ’20 and Michael Frohwein ’19 took a look at Tesla’s performance and news over the last few years. The duo specifically compared Elon Musk’s seemingly erratic tweeting with drops and rises in Tesla’s stock price, as well as more broadly examining Tesla’s journey as a public company.
Take a look at the full presentation here: IC Presentation 9/14/18.
Our first meeting this year post-Involvement Fair was a sellout. Simon L3 was packed to the rafters, filled with students of all class years and from all different backgrounds. The excitement of the room was obvious, spurred by both lower- and upperclassmen alike. The co-presidents started the meeting off with introductions to the Executive Board and the club in general, and then moved into the meat of the afternoon.
First, Henry Lewand ’21 introduced the meeting attendees to the “Stock Market League” that the club is facilitating throughout the semester. Each Lafayette student that signs up has the opportunity to “invest” $250,000 into their preferred securities, and the three highest-valued portfolios after December 21 will win cash prizes. Check the rankings here if you’re interested.
Next came Jeff Sikorsky ’19, as well as the club’s respective sector analysts, who updated the club on the portfolio’s performance over the summer. In short, our holdings rose in value $65,392 (8.5%) since April 2018, including the notable jump of our recent purchase of Canada Goose by over 40%. This semester, and moving forward in general, we hope to more completely answer our own questions of appropriate risk balance and general diversification, especially as we continue to thrive in one of the longest and strongest bull markets in history. More detail on the portfolio’s performance can be found in the presentation at the bottom of this post.
The meeting concluded with an emerging markets segment, describing recent tension and volatility spawned by international turmoil (notably in Turkey, South Africa, and China). Again, more detail can be found in the presentation below.
Investment Club Presentation 9/7/18
As finals wrap up and the academic year comes to a close, it’s time to welcome our newly-elected Investment Club executive board. From rising seniors to sophomores, there’s a mix of new and old faces. Last week some of the past and present came together for a dinner in Easton, and we have evidence!
The Investment Club has never been in the business of radical adjustment, and this coming year looks to be no exception. While the recent bull run may be slowing, the club is poised to grow and succeed. Check back throughout the summer and next year for more updates!
We only have two weeks left in the school year, which means its time for our next Executive Board to take the reins! Congratulations to our new members and thank you to our graduating seniors for all of your hard work!
ATTENTION anyone interested in financial internships, jobs, or learning from the experiences of successful alumni. The Lafayette College Investment Club will be hosting an alumni panel Thursday, April 6th from 12 pm to 1pm featuring 5 of our very own Lafayette graduates who are currently at Barclays. There will be representatives from Sales and Trading, Capital Markets, and Hedge Fund services to discuss the specifics of their roles, give advice, and answer your questions.
Note the earlier starting time at 12 pm. Along with the helpful advice and insights, pizza will be provided.
See you there!
Even the best make mistakes- for those of you who have been following our Investment Club, you might have noticed that 2 winners out of our past 3 stock battles, Under Armour and Amazon, have faltered in recent months. What do these losses mean for our portfolio and future decisions? (First off, don’t worry. We will still be providing pizza at our meetings rain or shine).
Second, as a club that is driven by long term success and the primary goal to educate our members, sometimes we will take risks that don’t pay off in the short term. As discussed in our last meeting, our mistakes are opportunities to analyze our rationales and apply new perspectives to future decisions. As an example, when looking to purchase Under Armour we determined only Nike to be an alternative company, overlooking the similar sportswear giant Adidas who rose to success in 2016.
Third, although we embrace mistakes as learning opportunities, we still consider whether it’s worth holding a position or not. Given our long term perspective, we have to decide if our current portfolio will benefit the Lafayette Investment Club and all of its members decades from now.
Being wrong is never easy. But at the Lafayette Investment Club we take pride in our ability to bounce back! See more at our first presentation of the year under Meeting Updates.
The Dow finally hit 20,000, and this year the Lafayette Investment Club is ready to reach new heights of its own. Come by next Friday and start your semester right with our first meeting 2.3.16