Why York College students should view the stock market as a long-term strategy to “Get Rich”
In an upcoming talk, a York College of Pennsylvania professor will dive into the many ways students can invest better and build wealth, while also touching on some of the headline-grabbing news of recent events, like the GameStop/Reddit saga.
“If students can stay calm, forget about the short-term and focus on the long-term opportunities of investing, they can find some really unique strategies,” Pawan Madhogarhia, Associate Professor of Finance, says. “They have a chance to forget about what’s popular or what’s happening in the news and really focus on smart investing.”
College students in their 20s have 40 years or longer to accumulate wealth. Madhogarhia suggests taking advantage of that timeline.
“If they understand this and make good decisions, there will be benefits for them in understanding the stock market and how to properly invest,” he says. “That’s why compounding interest is often referred to as the eighth wonder of the world.”
Watching an investment grow
In 2016, an initial investment of $250,000 gave York College students of all majors a chance to learn about the stock market. Following a value-driven strategy, the Student Managed Fund seeks to invest in stocks that are undervalued and have a competitive durable advantage. As of February 2021, the fund has grown more than 60%.
Tanner Donivan ’22 is a Finance major who saw the Student Managed Fund as an opportunity to learn more about a market that often feels confusing. As President of the Student Managed Fund, he hoped to gain experience that will help him better understand the stock market and find ways to make it fun.
“I’m really there for the leadership experience,” Donivan says. “We’re all working together to find the best means of investing these funds and ensure their continued growth. We’re here for the long haul.”
Cy Overmiller ’22, an Accounting major, invests in the market, but has taken a more passive approach by buying more low-fee index funds. “I do not have as much time to monitor the market as I would like to, so I’ve adjusted my strategy accordingly,” he says. “I know this goes against everything that the New Age, young Redditor investor stands by, but it is what suits me at this point.”
While Overmiller has gained and lost money over the years, he’s developed a better strategy for his investing. “The knowledge I have from years of watching the markets and being involved in the Student Managed Fund at YCP has given me an incredible base of financial and business acumen,” he says. “This is something that eludes most people, and I am happy to have learned it. It is exciting to see the large number of young people getting involved in the markets.”
Join Professor Pawan Madhogarhia for the upcoming Spartan Speakers lecture, “Get Rich: Don’t Just Play the Stock Market, Learn the Inside Scoop.” The event is Tuesday, April 20, 2021 at 6:30 p.m. via Zoom.
For more information on the Spartan Speaks series and to register visit our website at https://admissions.ycp.edu/register/Spartan-Speaks-Apr20.