Many college students seem to be showing interest in the stock investment as the economy has entered the recovery. You reading this article might have decided to start investing, too. Then you should keep in mind one thing before you start. “Lack of information only leads to speculation not investment.” Speculation only results in your losses. If you want to make proper investments, you should try to take all these things into account: the domestic and international macroeconomic situation, understanding the industry and business, etc.
However, it’s definitely hard to make it successfully by oneself, of course. Most individual investors don’t have enough time to intensively analyze the stock market. Besides, they tend to be swayed by a little gossip easily. So we suggest studying with a group of people. It helps you make a right decision.
I’d like to take this opportunity to introduce a club. You can study a general investment together with the club members and it will also give you a good way to share information. EIA(Ewha Investment Analysis) is the very first association in Ewha Womans University that looks at “Value Investing”. What it means is that, according to Warren Buffet, people should carefully analyze the corporation’s internal value before making an investment instead of investing based on some unreliable information - Value investing is about finding shares that the market has not correctly priced - are undervalued. In other words, it means looking for a share that has more potential for the future than is reflected in the current price. That corporate’ share is called ‘Value Stock’.
Therefore, our primary job is to analyze the corporation’s industry, financial situations and the benefits and the risks involved to find out ‘Value Stock’. We do a research project in a team of 4 and make it a presentation once in 2 weeks. Through this process, we can take a broad diversity of perspective on a corporate. It also can be a merit in that the very analysis gives us a great deal of knowledge about the overall economy, even if it doesn’t end in a real investing.
Moreover, by experiencing the simulated stock market which is a kind of free stock market game, definitely not as risky, we provide opportunities for students to see what it is like to make investment. Basically EIA is trying to help students be on the right track when it comes to investment because it can be easy for students to fall into the temptation of making “easy” money by investing without proper knowledge about the stock market.
EIA was introduced in e-daily, mbn, and on KBS, WOW TV, etc. For those who are interested, please come to club.cyworld.com/ewhainvestment.