LEGACY
FIRST PERSON Doug Nielsen ’09/’12 MBA
Olivet The Magazine (OTM): How do you help students comprehend the balance between risk and reward as they dive into finance? Doug Nielsen: Risk and reward are very subjective. The problem is that most people want the reward of a return analogous to investing in bitcoin but want the limited risk of a Treasury bill. That type of investment does not exist. Do research on the various types of investments available to you as a consumer and choose those that conform to your risk tolerance level. There are many free tests available — I use one in my investments class every semester — for people to understand how much risk they are willing to take. Students need to understand their comfort with risk before ever investing. OTM: What is your investment advice for how to navigate the chaotic nature of the stock markets? Doug: Just relax, take a deep breath and it will all be OK. In class, I encourage my students to adopt a long-term approach. Historically, the market goes up. Those who kept their money in the market during the 2008–09 recession and this past recession have made more money than those that pulled their money out of the market and kept it in cash. When going through turmoil, research the investments that perform the best during these times.
OTM: Why are hands-on learning opportunities like the Student Investment Club important on a college campus? Doug: First and foremost, students learn how, why and when to invest in various economic conditions. They learn what is the most appropriate asset in which we should invest, given macro- and microeconomic conditions. Further, they get real-world experience investing real money. This puts a different perspective in our students’ minds when we discuss topics like the Federal Reserve raising or lowering interest rates; President Joe Biden pushing an infrastructure bill; the delta variant affecting the global recovery; and Chinese government control over its companies. These topics have a direct impact on our investments, return and performance every quarter. On a professional side, many of our students have been offered internships and jobs because of this work within the club. The past four club presidents have been given an internship or a job because of the work they did leading the club and managing the account. Additionally, the club allows students to better understand investing as they pitch opportunities to the club and vote on how the money should be managed. This past year, we were blessed to offer two $1,000 scholarships to Olivet students based on earnings from investments. The payoffs are huge.
OTM: What are some key life lessons that you’ve learned in your career as a faculty member? Doug: First, I have learned to never hesitate to say, “I do not know” to students. We do not know everything there is about every topic we cover in class, and that is OK. If you make up an answer, the students will know, especially with their computers in front of them. Second, live your life according to the devotions you give. I encourage and pray for all of my students to follow after God and live holy lives.
Doug Nielsen is a professor in the McGraw School of Business. His area of specialty is finance — specifically, financial markets and related
research — and he serves as the faculty mentor for the Student Investment Club. Founded in 2017, the club oversees a fund of student-
managed investments that, as of August 2021, contained $931,000. Doug is married to Katherine (Benson) ’05, an adjunct faculty member in Olivet’s School of Music and a resident director. They are the parents of two children, Charlotte and Joseph.
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