Author: Sarina Shrestha

The meeting started at 9:10 pm.

Kathy did a quick Market update. Twitter IPO finally set its price at $17-$20 per share and is planning to sell 70 million shares.It is the second largest  IPO share for Internet company after Facebook. Apple has a strong outlook in stock market due to strong ipad growth. Last Friday, October 25 NASDAQ’s (National Association of Securities Dealers Automated Quotations) composite index neared 4000, powered by gains in Microsoft and Amazon.This was a significant moment since the last time the market reached this peak was on September 8, 2000, the last tech bubble. Also, Amazon has increasing revenues but zero profits since it is “A charitable company being run by elements of the investment community for the benefit of consumers”. Moreover, Fed will maintain its current asset purchase program.

Then,Bryce gave an update on our Portfolio. Our current portfolio consists of nine different stocks as follows:

• Apple
• Alliance Data System
• Buffalo Wild Wings
• Under Armour
• Methode Electronics
• McDonalds
• Sprouts Farmers Market
• Sanchez Energy Corp
• Proto Labs

Most of the companies we have in our portfolio have high P/E ratio. Unless one is doing Value investing, one should not completely base off his portfolio decisions on P/E ratios. We currently have only $20,000 invested in our portfolio while we still have $100,000 in cash. So we encourage people to do stock pitches and bring more diverse companies to our portfolio!

After the update on our portfolio, Dingwei showed everyone two short videos on how to do a proper stock pitch. According to the videos, stock pitch should start with investment thesis. Then it should move on with Business revenue breakdown, company’s SWOT (Strength, Weakness, Opportunity, Threats), business efficiency, valuation and catalysts. The conclusion should consist of a summary of the everything one has talked about with particular focus on “Why should the stock be bought now?”.

The meeting concluded at 10pm. We will see you again on Wednesday, November 6 at Taylor G.

Did you know?

Blue Chip Company: According to Investopedia, Blue Chip company is a “A nationally recognized, well-established and financially sound company.” McDonalds, which is also in our portfolio, is a blue chip company.

Mr Jim Clarke, here on referred to as Mr. Clarke, started the talk with a brief introduction about his work. Mr Clarke is the Co-manager of Brandywine Global Investment. He started off as financial analyst in Morgan Stanley, right after his graduation from Williams College and later on took on the path of value investing in Brandywine.

“Value Investing is an interesting way to invest capital”. With this he started talking about value investing. He shared an interesting story about technology stock prices in early 2000’s. The technology stock prices soared up due to the innovations in Microsoft. While everyone was after the technology stock shared, he and his company ended up buying Ball corporation’s stock, a company selling beverage cans. The reason for this was because the stock prices were significantly cheaper. According to Mr Clarke“You won’t buy the company everybody loves” because the costs are too high.

 Then he moved on to talk about the price,value and cost. Price is what you pay and value is what you get. He talked about Margin of Safety which is the difference between cost and value. Margin of safety is an important determinant in the stock market.

 He compared stocks to tiny pieces of business and told us to ask yourself the same questions you would ask as if you were buying a new business. One should look at the market price, cost, net earnings and debt as well as Assets and Liabilities. Only after taking all the aspects into consideration should one proceed with the purchase of the stocks.

 Concluding his talk on value investing, Mr Clarke ventured into “how to get an internship in this sector”. Four advices he gave were:

1. Should be ready to play with numbers

2. Read Wall Street Journal

3. Read books on investing

4. Networking with alumni in the respective field

He further suggested to not let few hundred dollars stop you from taking a job. After that we entered a Q/A session with students asking him questions ranging from investment, value investing to different job opportunities.

The talk ended at 10:15 pm. We would like to thank Mr. Jim Clarke for holding his talk and taking some time out from his busy schedule.

See you on Wednesday, 30th October. Until then “Buy fear and Sell Greed”!

Annual Summer Internship Panel started at 9:05 pm in Taylor G.

The panelists presenting their summer internship experiences were six students from Bryn Mawr and Haverford. Their name and their internship organization were as following:

• Ethan Pan : Citi, Institutional Clients Group
•  Erin Wilder: Citi, Global Markets; BNP
•  Amy Zhao : The Vanguard Group, Portfolio Review Department
•  Ivy Gluck : Brandywine Global Investment Management, Large Cap Value Team Product
•  Tom Yi : Richmond Hill Investment, Value-investing hedge fund
•  Judy Yeung: Jardine Matheson, Finance and General Services Department

The panelists first shared their general experience about their internships and what they did. Their internship activities ranged from doing stock pitches, researches, auditing reports to fund mapping and transaction banking. Then they talked about the most rewarding part of their internship, which included being acknowledged as a worker by senior members, client interactions as well as auditing reports.Their biggest challenges in internship were getting accustomed to the work environment, making recommendations to senior members, learning about political policies and coming out of the comfort zone.

Moving on to application process for their respective internships, each one of them had something different to offer. Erin talked about Boston Career firm while Ivy and Judy emphasized the importance of Bi-Co resources such as Lantern Lake and externships.

“You don’t need how to calculate premium price of option, what you need to know is what is happening in the market, and have a genuine love for finance.” As quoted by Erin this was the major theme of the advice from all panelists. They encouraged us to utilize our analytic background, provided by Liberal Arts environment and start learning few financial terms to show your interest.

After a brief Q/A session, the Annual Summer Internship Panel ended at 10 pm.

We would like to thank all our panelists for taking out time from their busy schedules to come and talk to interested students.  Good luck for your future endeavors!

As per the Bryn Mawr tradition the meeting started at 9:10 pm.

Kathy, our Bank treasurer, gave a brief market update. US stocks ended mostly at lower level with blue chips suffering fourth straight loss. While financial and health sector were main gainers, industrial sector declined. Also, shares of Apple increased by 3.8%, with record sale of 9 million new iphones last weekend.Another big news was about JP Morgan paying $920 million to the London Whale.

Then Laura, one of the members of Portfolio Mangement Team, did a stock pitch about Boeing, which was the first stock pitch of this academic year. Boeing is known for its manufacture of airplanes as well as for defense and space securuty systems. They made $60 billion dollars in the first quater of this year, which was the total amount of what they made last year. It’s major rival is Airbus and they both sold same amount of models in the Paris show. Considering it is active in two different sectors, Boeing might turn out to be a profitable addition to our portfolio.

After a quick question answer session about Boeing stock pitch, Bryce, our Portfolio Manager, talked about SCO. While UCO represents the price of crude oil, SCO is its inverse. The financial stats on SCO can be found in following website: ttp://finance.yahoo.com/q?s=SCO

Then, Dingwei, our President gave an interesting Investing 101 session about financial statements. We focused specifically on Income statement, which basically specifies financial result over a time period. More information on Income statement can be found in the following website: http://www.investopedia.com/terms/i/incomestatement.asp

Dingwei also informed everyone about our Annual Summer Internship Panel, which will take place next week October 2, 2013 at Taylor Hall.

The meeting ended at 9:50pm. See you next week at our Annual Summer Internship Panel!

The meeting started at 9:10 pm. Cheers to Bryn Mawr time! Although from next week we will be starting our meetings at 9pm sharp.

Dingwei, our OIG president, gave a quick introduction about establishment of Owl Investment Group (OIG) in 1976. Then, the OIG executive board introduced themselves to the members. Following that, the general members introduced themselves as well and talked about their intent of joining OIG.

After that Dingwei went over the past events hosted by OIG such as Bryn Mawr Work series, which is also going to continue this year. She also talked about Bryn Mawr achieving sixth position in Adirondack Competition last year. Adirondack Cup is a competition whereby the participating teams will create their own hypothetical small cap portfolio for six months. The team with the best return in six months wins the cup. The Bryn Mawr team for this year’s Adirondack Competition will be announced soon.

Then Bryce, our Portfolio Manager, talked about Portfolio Management Team. Portfolio Management team basically manages the portfolio owned by Bryn Mawr. It is, in simple words, for the students and managed by the students. She talked about last year’s portfolio which consisted of 17 investments, out of which few were legacy investments.  After a thorough cleaning of the portfolio, now our portfolio consists of only one investment-McDonalds and is worth around $126,000,a little more than last year. Then, the new Portfolio Management team for this year was announced. The team members introduced themselves and talked about their financial backgrounds.

After the announcement, Dingwei gave a brief market update, which showed S&P 500 and Dow had reached record high! As OIG invests in both domestic and international markets, everyone watched video about how markets might react to the Fed’s decision.  Then Bryce informed everyone about Fed’s decision, which was delay in tapering quantitative easing.

As there were many new members present in the meetings, Dingwei and Bryce talked about the difference between bonds and stocks.You can know more about the difference by visiting this site: http://www.diffen.com/difference/Bond_vs_Stock

The meeting ended at 10 pm.

Congratulations to our new portfolio management team.  See you all next Wednesday,9 pm sharp!