Finance Legends Share Tips With Students
Richard H. Driehaus (BUS ’65, MBA ’70, DHL ’02), the college’s namesake and chairman of Driehaus Capital Management, and William Farley, chairman and president of LV Ventures, Inc., presented guest lectures during this spring in the course, “Practical Investing: How to Make Money and Enjoy Doing It.”
The Department of Finance class, taught by Joel Litman (BUS ’93), chief investment strategist of Valens Securities, emphasized how to make money by using data to pick stocks.
Driehaus and Farley showed students how successful investors think. Driehaus stressed embracing change, and Farley emphasized that success takes persistence and courage.
DePaul’s ties to the elite investment community provide opportunities for unique learning experiences, Litman noted. “Students get to hear stories you can’t get in a textbook.”
Driehaus Dismisses Investing Myths
During his lecture, Driehaus outlined these nine approaches to investing that challenge popular investment paradigm.
1. Conventional advice: Buy low and sell high.
Driehaus advice: Buy high and sell even higher. “You want to buy stocks that have already had good moves and are doing well rather than take the risk on investing in a stock that is already in decline and hoping it goes up.”
2. Conventional advice: Just buy stocks of good companies and hold them so you don’t have to pay attention.
Driehaus advice: Buy good stocks and hold them, but monitor daily and get rid of things if there are bad changes.
3. Conventional advice: Don’t try to hit home runs; you make the most money buying singles.
Driehaus advice: No, you make the most on home runs—but you also need discipline.
4. Conventional advice: A high turnover strategy is risky.
Driehaus advice: It reduces risk if you’re taking a series of small losses to avoid one big loss.
5. Conventional advice: Your investment process needs to be systematic.
Driehaus advice: True, investing requires discipline, but your process must be flexible enough to adapt to changing market conditions. “Don’t invest because of what you think should be happening—invest based on what actually is happening in the market.”
6. Conventional advice: You must have a value-based process and uniform evaluation for all of your picks.
Driehaus advice: “The world is not that precise. I’m convinced there is no universal valuation process.”
7. Conventional advice: Buy good research conducted by the best analysts.
Driehaus advice: He relies on the news and company reports to keep up to date
8. Conventional advice: The best measure of investment risk is volatility.
Driehaus advice: Not exactly. Volatility is only a risk for the short term, and much of discussing investment requires looking at long-term risk. What has the least short-term volatility may actually be the most long-term risk, so you have to watch out.
9. Conventional advice: It’s risky to give you money to a star manager and safer to have it in a diversified group.
Driehaus advice: No, it’s still smarter to go with a talented individual who really knows the market.
College Welcomes New Hospitality School Director
Nicknamed “Dr. J.” by her students, Johanson is a prolific scholar and teacher who joined DePaul in 2009. She helped develop the curriculum of the hospitality school, which was founded five years ago with a $7.5 million gift from the Conrad N. Hilton Foundation.
Johanson earned her bachelor’s, master’s and doctoral degrees in hospitality business and tourism from Michigan State University. In addition to her academic knowledge, she brings experience as a management advisor and consultant for major hospitality industry companies to her new role.
Ray Whittington, dean of the Driehaus College of Business, praised Johanson as a “talented and enthusiastic academic leader whose industry experiences and connections will help us access all the opportunities that a world-class hospitality city can offer to enhance the prominence and success of the school.”
New 3D Printer Helps Students Turn Ideas Into Reality
DePaul business students have a new digital tool for visualizing their business ideas. The Center for Creativity and Innovation (CCI) has purchased a 3D printer that allows users to make three-dimensional figures from electronic files. Students can access the device to create prototypes of product ideas for business classes and pitches.
The printer was bought to support the efforts of the CCI’s new Innovation Lab. The lab is underwritten by a gift from Robert Perrelli (BUS ’04, MBA ’06), a senior manager at TCF Inventory Finance, Inc. and a member of the CCI Advisory Board. See a video of the printer in action.
Do What You Love, CEO Bob Mariano Tells Graduates
DePaul’s business alumni network grew by more than 1,200 graduates at DePaul’s commencement ceremony in June. Robert Mariano (DHL ’14), CEO of Milwaukee-based Roundy’s and founder of the fast-growing Mariano’s Fresh Market grocery chain, delivered the commencement address.
Mariano had the following advice for new alumni: “Successful business people are wildly passionate about something. If you’re serious about going into business, you must have passion. Life is short, and you don’t want to waste even one day doing something that doesn’t make you happy. Whether you make a dollar or a million, if you find what you love, you will be successful.”