The Investment Club began in 2003 with a donation of $100,000 from a generous benefactor. The main goals and objectives of the club are as follows:
The club, which meets weekly during the fall and spring semesters, is led by students with oversight from a faculty advisor. The portfolio is invested entirely in U.S. and large international stocks traded on the New York Stock Exchange and the NASDAQ. The stocks are selected based on financial and non-financial criteria.
Investment club members research and analyze financial information about specific companies to determine if they meet the necessary financial criteria. They look for mid to long term growth stocks that will be held for a minimum of one year. Other financial considerations are based on the quality of the firm’s financial statements, growth in earnings, cash flows, and analysts’ assessments of the firm’s future prospects. The Investment Club seeks to diversify its portfolio to include all ten economic sectors as defined by the Global Industrial Classification Standard (GICS). The club also strives for diversification by investing in international and multinational companies. The risk of the portfolio is kept in check by limiting the initial investment in any security to less than $10,000.
The critical non-financial requirement is that the companies the club invests in must operate “beyond the bottom line.” The investment club is fully dedicated to Socially Responsible Investing (SRI), yet they take SRI even further by practicing Biblically Responsible Investing (BRI). The Investment Club analyzes company operations regarding social issues, environmental issues, charitable giving, poverty, morality, ethics, and at the most basic level, legality. To aid us in this decision making process we utilize research from the Biblically Responsible Investing Institute database which is an expensive online information product which has been generously donated to us by our friends at Stewardship Partners. Finally, as the investment club of Messiah College we strive to embody the mission and values held by Messiah College in our everyday investing decisions.