Written by Riley Hutchings
The Investment Club at Colorado College receives nearly $40,000 a year to invest in stocks. According to Club President Baran Yildiran, the program “allows students to invest by using [the] school’s money in modern finance structures.”
The group has over 30 active members, who meet once a week to vote on which companies to invest their money in. “CC does not really intervene with our trades,” said Yildiran. This independence gives members the freedom to make mistakes with no risk to their personal finances.
Often, the group is so successful that the mistake has been not investing their own money. First semester of this year the club made more than six percent returns on their initial $37,000.
The money the students make goes towards funding for the next year, giving them incentive to make strategic decisions as to where they put the school’s money. In addition, Yildiran has capitalized on members’ competitive spirits by breaking the club into four “portfolios,” which compete to make the most money by the end of the year.
Over the years, the club has invested in a wide array of companies ranging from trendy stores like Chipotle and Lululemon to multinational pharmaceutical companies such as Amgen. Through this, they have discovered that one risk associated with publicly traded stocks like these is the publicity that surrounds them.
When former Lululemon CEO Chip Wilson released inflammatory public statements, public perception of Wilson changed, subsequently hurting Lululemon’s stock and the Investment Club team. Wilson claimed that the pilling yoga pants sold at their stores were wearing so quickly because “Frankly, some women’s bodies just actually don’t work for it.”
Wilson made this comment on Nov. 5, 2015, and in the following 12 days, Lululemon’s stock dropped by nearly $8 a share, damaging CC’s returns.
Though the club is made up of many economics majors, there are many different roles within the club, ensuring the participation of a wide variety of students from all disciplines. There are no prerequisites to join. Members range from secretaries to analysts to managers, “creating a real life finance simulation,” said Yildiran.
Across the board, the skills gained by members of the Investment Club are valuable, regardless of how they participate. “It gave me a lot of leadership experience and membership experience,” Yildiran said. “The communication between people makes the most difference.”
Despite how successful the club already is, it is still growing and changing to adapt to the shifting market and members. Since he was elected last year, Yildiran has taken huge steps to propel the group forward, and the club is only getting better as it becomes more established.