Blue Hens discuss investments on CNBC’s 'Power Lunch'
The Blue Hen Investment Club, a student organization that oversees a substantial portfolio on behalf of the University of Delaware, was featured on the Monday, Dec. 3, edition of CNBC’s “Power Lunch” program. “Power Lunch” host Bill Griffeth asked several market-related questions to club representatives Ryan Crawford, a sophomore majoring in finance and management; Munish Pahwa, a doctoral candidate in economics; and Donald J. Puglisi, MBNA America Professor and adviser to the organization since its inception. Griffeth was taken by the University’s mascot, the Fightin’ Blue Hen, and a graphic let viewers know they would be learning about “Hen-picked stocks.” Griffeth said the UD organization kicked off the program’s “College Investment Week,” initiated as a result of keen interest on the part of university investment organizations across the country, and asked Puglisi to provide an overview of the group. The Blue Hen Investment Club was founded in 1996 with initial seed money of $500,000 granted by the UD Board of Trustees. It currently has 17 members, and most attended the CNBC session held Monday afternoon in the lobby of MBNA America Hall. Pahwa discussed the club’s stock holdings in Amgen and Bank One, while Crawford discussed its holdings in Pfizer and AOL Time-Warner. Those stocks received good marks from three market experts selected by CNBC to review the four stocks included in the club’s extensive portfolio. Griffeth asked Puglisi about the club’s experience with Internet companies during the wild ride of the 1990s. The professor said the club had seen “a run up in some and a run down in others,” and that students had learned valuable lessons about when to sell and about the importance of diversification. “The goals of our club are to have consistent growth in our holdings and, as members, learn from each other, gaining real life investing experience that will benefit our future careers,” Crawford, who contacted CNBC about the UD club, said. “The club started out with an endowment of $500,000 and is currently pushing upwards of $800,000,” Crawford said, adding, “I know I am a college student but I think that’s a lot of money to just about anyone, and it is at our club’s fingertips to decide where to put that money. That in itself is powerful.” Since Crawford joined the club, he said he has learned a great deal about the fundamental principles of investing, has developed presentation skills and has gained “a great respect for diversification.” The club has done surprisingly well during the past year’s “growth recession,” Crawford said, noting, “We have actually made gains during the time by investing in companies that are ‘recession proof’ and taking advantage of low prices on companies that are deemed as undervalued.” Last year at this time, the portfolio was at about $650,000, Crawford said. He said he hopes the “Power Lunch” appearance will spur more students to join the club, membership in which is free. The club provides a wonderful opportunity for students to learn first-hand about markets and investing, he said.  |
