The Central Washington University Investment Group seeks to provide students critical financial analysis skills for the financial job market in a fun, collegial, and intellectually stimulating environment. The group also provides an opportunity for students to begin establishing a professional network. The CWU Investment Group is built around three primary functions that provide invaluable skills for students interested in finance.
The first function is to teach students how to analyze potential equity investments in two ways: First and foremost by using quantitative valuation models (e.g., discounted cash flow models) which are based on assumptions grounded in sound economic reasoning; and also, by using relative valuation ratios. This training develops analytical and critical thinking skills in addition to economic intuition.
The second function is to provide a forum for students to pitch stock analyses to the group for discussion and debate. This encourages students to show confidence in themselves and their research, be assertive, and foster the respect of their peers.
The third Function is to make investment decisions. If the board, with input from group members, decides a stock is a worthy investment, the stock will be added to a portfolio funded through alumni donations. Each investment of this portfolio will be voted on before being added to the portfolio. Long run performance of the portfolio is based on the quality of the analytical research, discussion, and debate of the group members and investment decisions made by the board.