The St. Rita Stock Club is in 15th place out of 2,703 teams in a national competition as of February 18, 2016. Stock Club moderator and St. Rita CFO Mike Gallagher taught the club members how to construct a portfolio of stocks based largely on lessons he learned from working with St. Rita 1941 alumnus Bill Doyle '41 over the past ten years. Mr. Doyle had a very successful career and has generously given back to St. Rita through his time and resources, including donating funds to start an endowment for St. Rita, and build St. Rita's on-campus, state-of-the-art, athletic field--Doyle Stadium.
The endowment was constructed in part on lessons Mr. Gallagher took away from a Catholic school endowment conference at the University of Notre Dame conducted by Scott Malpass, who manages billions of dollars in the Notre Dame endowment. The St. Rita endowment is a little smaller than Notre Dame’s endowment at this time. The St. Rita endowment Mr. Doyle initially funded is 100% invested in equity ETF’s, with 45% in S&P 500, 20% in US mid cap companies, 20% in US small cap companies, and 15% in developed international companies.
The portfolio constructed for the competition is made up of companies who are leaders in their respective industry. Each had been beaten down in price along with the stock market, in some cases like throwing the baby out with the bath water. Bill has a great saying about the stock market: "Bulls can make money, bears can make money, but pigs get slaughtered." Basically, no need to be greedy, just invest in solid companies with strong cash flow at fair valuations.
Companies in the portfolio currently in 15th place are BP Amoco--an oil and gas company, Hilton - a leading hotel chain, UBS--a leading international investment management and wealth management company, Las Vegas Hilton--the leading international casino company, and Canadian National Railway, a leading railroad company in Canada with a solid balance sheet and a wide moat to keep new competitors from entering the industry.
Stock Club members are: Teddy McDermott (St. John Fisher), Michael Rutter (Lakeview Jr. High - Darien), John Zefran (St. Daniel the Prophet), Austin Cabello (St. Therese), Paul Fernandez (St. Daniel the Prophet), Pete Conroy (St. Barnabas), Josh Jackson (Oak Prairie Jr. High - Lockport), Oscar Martinez (St. Nicholas of Tolentine), Tommy Troesch (St. Barnabas), and Charlie McDermott (St. John Fisher). The team is trying to finish in the top ten for the national competition which runs through May 6, 2016. The top ten teams win a free trip to Washington, D.C. this summer.