Redmond Asset Management, LLC Higher Education Scholarship
Overview
What: Intermediate Term Investing Contest for All Freshmen Students at Douglas S. Freeman High School (DSF)
The winner will receive $1000/year ($4000 maximum) toward tuition and/or room and board at a place of higher education. A place of higher education includes trade schools and arts schools, in addition to traditional four year colleges. A restricted gift will be made from RAM to DSF prior to matriculation of the winner at their place of higher education. DSF will hold scholarship funds and is responsible for dispersing funds to the place of higher education.
Who: Incoming Freshman in Leadership Center
a) students who are held back may continue to participate
b) students who transfer to another school may continue to participate but students who transfer to DSF after the contest has started may not
How: Submit materials directly to Redmond Asset Management, LLC (RAM)
RAM will accept written and/or electronic information from contestants per the contest rules below. RAM will perform all calculations and provide updates on the contest not more often than twice a year. Contest starts in early Spring of each freshman year (with exact dates and deadlines to be announced), with a winner announced on or before senior commencement.
Why: Provides a foundation for smart investment strategies for families and students
Financial literacy, time orientation for investing, family orientation/involvement/participation, combats the influences of media extolling speculation (for example CNBC’s Mad Money and Fast Money), see that returns from dividends can be a substantial portion of return over time, etc…
Specific Requirements
Below is a thematic and broad overview of the contest. The contest is still pending county approval, but approval is expected. Changes may be made as the contest progresses by the county, DSF, or Redmond Asset Management, LLC.
Freshman Year: The Peter Lynch Year
In early Spring, contestants pick 6 stocks, $1000 hypothetical RAM dollars will be invested in each stock. Contestants must compose a one paragraph description of the famed investor Peter Lynch. Contestants must submit a brief description of why they like each of the six companies whose stock they picked.
Sophomore Year: The Michael Porter Year
During the Fall, contestants pick 6 more stocks, $1000 RAM dollars will be invested in each. Contestants must compose a one paragraph description of Michael Porter, who wrote “Competitive Advantage” and “Competitive Strategy”. Contestants must update the description of existing holdings to include simple comments regarding the companies’ competitive position within its industry, in addition to why they like the company. In early spring, contestants may replace 2 holdings and submit rationales for the sale and for the purchase. They may also reduce holdings that have appreciated, by the amount of the appreciation, and allocate the money to other holdings.
Junior Year: The Benjamin Graham Year
During the Fall, contestants pick 6 more stocks, $1000 RAM dollars will be invested in each. Contestants must update the description of existing holdings to include the PE ratio, Price to Book Value Ratio, and Debt to Equity Ratio, in addition to why they like the company and what its competitive advantages are. Contestants must submit a paragraph description of Benjamin Graham, a tremendous influence on legendary investor Warren Buffett. Contestants may replace 2 holdings and submit rationales for the sale and for the purchase. They may also reduce holdings that have appreciated, by the amount of the appreciation and allocate the money to other holdings. In early spring, contestants may replace 2 holdings and submit rationales for the sale and for the purchase. They may also reduce holdings that have appreciated, by the amount of the appreciation, and allocate the money to other holdings.
Senior Year: The Redmond Asset Management, LLC Year
During the Fall, contestants update descriptions of existing holdings to include how they were positively or negatively surprised by the performance of the company and by the performance of the stock. They may replace 4 holdings and submit rationales for the sale and for the purchase. They may also reduce holdings that have appreciated, by the amount of the appreciation, and allocate the money to other holdings.
Closing prices on a in early spring (exact date to be announced) will be used for the final tally; mail or email the information before midnight of the announced date to:
Higher Education Scholarship
c/o Redmond Asset Management, LLC
8001 Franklin Farms Drive, Suite 208
Henrico, VA 23229
Or email to: dsf@redmondassetmanagement.com
RAM will not provide investment advice to participants but each student/family is encouraged to follow the firm’s blog http://www.redmondassetmanagement.com/blog.
