On October 22, 2014, Ethan Everett gave the second pitch of the semester, recommending shares of Bed Bath & Beyond Inc. (BBBY). BBBY is a specialty retailer that he finds to be significantly undervalued, and represents a great addition to SMIF’s holdings. BBBY’s remarkable consistency is evident when looking at its historical free cash flows. BBBY’s free cash flow has been positive every year since fiscal year 1996. As a result of its ability to bring in excess sums of cash for an extended period of time, management has consistently been able to execute strategic stock repurchases to enhance shareholder value. With future store growth both domestically and abroad that the market does not seem to factor into BBBY’s stock price, shares look especially attractive. The class voted to purchase BBBY for the portfolio.
The investment fund visited New York City this past week, visiting the CME (formerly the NYMEX), Goldman Sachs, and the New York Stock Exchange over two days.
At market close today, the Student Managed Investment Fund’s portfolio was worth $951,329.41.
The portfolio consists of various equities and exchange traded funds.
Equities: Apple, American Express, Blackrock, BMY, Celgene, Chevron, Diageo, General Electric, IBM, Intel, Coca-Cola, Las Vegas Sands, McDonalds, NIKE, Norfolk Southern Co., Southern Copper, Slumberger, Ventanas, Linn Energy, and Verizon
ETFs: EMB, GLD, PGJ, TIP, VTI
The Winter 2012 Newsletter is now available!
Access it here: 2012 Winter Newsletter
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For the first time in nearly three years, the Dow Jones has closed above 13,000 points. SMIF has positions in several of the equities on the Dow, including American Express, Chevron, GE, Intel, IBM, Coca-Cola, and Verizon.
To date, the SMIF portfolio stands at $936,339.63, aided in part over the last week by Las Vegas Sands, Apple, and Intel.