y pooling your investment The market value of the clubs'
you will have more holdings tops $160 million and
protection when your they are pouring $2 million of
investment depreciates and you new investment into the market
stand to gain more when it each month.
appreciates.
All this is the more
One of the secrets of pooled remarkable when it is considered
investment is that you will also has created these clubs. They
gain a significant amount of have sprung up spontaneously as
knowledge. This will help to the realization has spread that
steer you on your way to here is a device enabling people
success.
of modest means to educate
Most clubs are less than three themselves about investment and
years old, and that nine out of to acquire stock in an orderly,
ten have a portfolio valued at consistent, and intelligent
less than $10,000.
manner.
No concerted organizational or
In outline, a club's members
promotional effort One of the meet regularly, contribute funds
astonishing developments in stock equally, study investment
ownership in the past 10 years possibilities carefully, and
has been the wildfire spread of agree jointly on shares to be
investment clubs throughout the purchased or sold. The unique
nation.
features of this procedure are,
A New York Stock Exchange first, that by responsible group
survey indicates that there are effort the members can learn the
at least 20,000 clubs in complexities of investment and,
existence, with a total second, that by aggregating funds
membership of more than 277,000 they can acquire stock with
people—and that more are forming, individual contributions even
at a phenomenal rate, every day. smaller than the Monthly
Investment Plan minimum. 15, a few number 20. Many clubs
Most clubs are composed of start with six or eight, and grow
neighbourhood friends or business as interest is aroused.
associates. Sometimes they are Experience indicates that 12 to
employees of the same firm, 15 members are best able to
sometimes members of a fraternal conduct the business of the club.
or religious group. The majority Beyond that number, things get
of clubs have all-male somewhat bulky and
memberships, although some 3,800 unmanageable.
include women, and something over
It can be extremely helpful to
2,000 are exclusively for the have a lawyer, accountant, and/or
ladies.
banker among the members. This is
A group of policemen form the not always possible, and many
New York's Finest Investment clubs are operating successfully
Club. A group of Maine without them, but if they are not
business¬men, who have been members, they should be within
long-time hunting companions, are hailing distance to give
now stalking profits as the professional advice on legal and
Katahdin Investors Club. Some tax matters, where necessary.
avid bridge players have become
Clubs should also establish an
the Bridge Investors Club; the account with a brokerage and get
Johns-Manville Club is made up of to know the customer's
J-M employees. Essentially, these representative who is handling
alignments assure a pleasant it. He can be a source of much
social atmosphere and economic useful information on the new and
compatibility, so that everyone unfamiliar field the club is
can contribute equally to the entering.
club's program without
Many brokerage houses are
strain.
happy to have representatives
The average club membership is attend occasional club meetings
to explain brokerage and market MIP, and at $100 an investor
operations, security analysis, could deal directly with a broker
and economic trends. from time to time. In these
With membership established, latter instances, however,
the club's next step is to agree diversification would be harder
on objectives and procedures: How to achieve and, of course, the
often shall it meet? How much burden of stock selection would
shall each member contribute? How be on the individual rather than
should stocks be selected? What decided by the shared wisdom of
should be done with the group. It appears that most
dividends?
individuals find the club
Clubs ordinarily meet once a experience a good training ground
month. Meeting less frequently in investment and that, after
than that slows activity to an they learn their way around, some
unsatisfactory pace, more 40 per cent of them feel well
frequently places a greater enough oriented to open personal
demand on the members' time than accounts.
the funds involved warrant.
Investments of $10 to $20 a
The usual investment is $10 month for groups of 10 to 15
per person per month, although people mean a fund of from $100
this depends entirely on the to $300, not an overwhelming
group's level of income. Some amount, but enough to buy
clubs set the ante as high as 10-share blocks at 30 or 5-share
$100 per month. Less than $10, of units at 60. The average club
course, does not give the club investment is about $260 a
much capital to work with, and month.
will probably make progress seem
Whatever the amount, most
discouragingly slow. More than clubs feel that it is absolutely
$40 makes it possible for a essential that all members invest
member to set up an individual equally. If individuals are
allowed to have two or more or branches, in their vicinity.
memberships, or to invest twice They inspect oil fields, mines,
or three times as much as the mills, and manufacturing
others, it will also be necessary facilities. All of this, of
to give them two or three votes course, is rudimentary, but it is
in club affairs, thus unbalancing the beginning of understanding
the share-and-share-alike and evaluation.
mutuality which is basic to
For the rest, it depends on
successful operation of this kind the club's objectives. Like you,
of organization. Twice as much it must decide whether to try for
money is not automatically a growth, dividends, or stability,
guarantee of twice as much good whether it is in for a quick
sense when the votes on profit or for long term
investment are cast.
appreciation.
In selecting stocks for
There are some Forex
investment, procedures are as investment clubs that you can
various as the ingenuity of the join by searching the internet
club permits. Some clubs start by that help to pool investors
accumulating shares of the money.
company the members work for, or
It is well worth using Forex
a company active in the area software to help you perform well
whose personnel and operations when you trade on the Forex.
are known to the club.
Other clubs undertake a study
of a different industry each month and then, perhaps, appoint type="text/javascript">
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