WEB EXCLUSIVE Following the Reddit controversy that caused the roller coaster rise and fall of GameStop stock, two sophomores have started The Investment Club.
“I hope that when people think of TIC, they think of an experience rather than a club,” co-founder Anoushka Dadlani said. “The club will hopefully give students the confidence to one day invest in the stock market, knowing and understanding all risks involved.”
Dadlani and co-founder Clara Bonomi say they intend to prioritize learning about financial literacy rather than internet driven speculation like the Reddit-fueled rise of GameStop that drove the stock up over 500% before crashing.
This focus on literacy is important for high school students, according to Alex Gleser, Founder and Portfolio Manager of TPG Public Equity Partners.
“I think it’s a real danger to get sucked into these Wall Street-style message boards,” Gleser said. “With GameStop, those people ended up just betting on hysteria and not the value of the company. I think that’s an important distinction for people to have in mind.”
The goal of the club is not only to learn how to value stocks, but to understand how the stock market works, according to Bonomi.
“Part of maturing into an adult is understanding how to spend and manage the money you make,” Bonomi said. “Before anyone can immerse themselves in the world of investing, they should have some basic financial literacy skills, and hopefully TIC can do that for some of my peers.”
The club plans on using a virtual simulation though howthemarketworks.com to allow members of all experience to learn the stock market, according to Dadlani.
“Our club will allow for students to learn about how the stock market works with zero-risk and in a fun and slightly competitive way,” Dadlani said. “There are no prerequisites required. Whether you learned about stocks from GameStop or something else, everyone is welcome to join.”
The club meets every Monday during first lunch in religion teacher Clinton Hackenberg’s Zoom room. Anyone interested in the club email either Dadlani or Bonomi using their school email addresses.
Disclosure: Clara Bonomi is a member of The Broadview staff.