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May 15, 2018 at 2:49 pm

Vedder in Forbes | Says OHIO is Best Example of Student Investment Group

Dr. Richard Vedder, portrait

Dr. Richard Vedder

Dr. Richard Vedder, Distinguished Professor Emeritus of Economics at Ohio University, authored an article at Forbes headlined “Learning By Earning: Why Student Investment Groups Are Better Than Internships.”

There has been an increase over time in integrating the academic experience of the classroom with real-world vocational involvement, particularly with the rise in student internships. A large number of college students now make career decisions and obtain permanent employment as a result of short work experiences with employers.

But perhaps an even more spectacular example of integrating classroom learning with real-world experiences comes from student investment groups operating at literally hundreds of American universities. These groups operate in different ways, but all have one thing in common: students are making investment decisions using real money. Let’s talk about three models: Penn State University, Michigan State University, and Ohio University….

Perhaps the most successful example is at Ohio University (where I am an emeritus professor). The school has two competing (in a friendly way) student groups running investment funds, an equity fund (with two portfolios totaling $4.6 million) and a fixed income fund (with about $2.8 million). Both were initially funded, like at Michigan State, by the foundation controlling most of the university’s endowment. The sole financial beneficiary of investment decisions is the university.

Read the rest of his column at Forbes.

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