BYU-Idaho students in the Investment Society have an opportunity to invest $5 million after a loan from the university.
“This money was money that has been generated here on campus through various university activities,” said Kerry Webb, an advisor for the society and an economics professor. “There was money left over from the bookstore sales, profit from The Crossroads and from student housing. It was small profits that were all gathered up and ended up being 5 million.”
After investing the $5 million, the earned profit is used for BYU-I scholarships.
Past investments have generated profits for scholarships.
“We started off with $5 million and we grew that up in two years about $7 million,” Webb said. “Then BYU-Idaho took 2 million and put it back into the general scholarships funds.”
For the past four years, students from various majors have joined the Investment Society and learned to invest money.
“What they do is get a lot of exposure to the same kind of techniques in terms of financial analysis that are used in the real world,” Webb said.
Students analyze eight asset classes. Each member gets divided into eight groups where there is a leader who has been part of the society for a while.
“During the course of the semester, the students analyze eight different asset classes,” Webb said. “These asset classes, three of them are in the bonds and mutual bonds and five of them are in the stock mutual funds.”
This society buys stocks, and as the value of those stocks rise, they sell the stocks for more than the initial cost.
“At the end of the semester, they all get back together and they make the presentations (to the financial board) on how much they think of the $5 million should be invested in that asset class (and have the finance board on board on how the money is being invest),” Webb said.
They start from the beginning each semester. New research, new data and new analysis to present and gain more profit.
The student-run society accepts everyone who is interest in learning about finance, even if they don’t emphasize in finance. Each semester they have speakers that talk about various jobs in the finance industry.
There is a fee that each student pays to be part of the society, and the cost varies depending on the semester.
If you are interested in being in the Investment Society, students can sign up on their Facebook page.