Do you use investment clubs?

Magick1 · #1 07-20-2002, 03:41 PM

Share your thoughts about investments clubs! Thanks

**Joubert**[$] · #2 07-20-2002, 03:47 PM

I don't think they are for sissies, but I do think that they can prove troublesome unless the members' goals are in sync.

With dollar cost averaging available from Sharebuilder.com and BuyandHold.com, their primary function of allowing you to purchase fractional shares seems to be rendered moot. If you know what you want to buy (even an index), but don't have a lot to spend, either of those sites will do right by you. And if you take advantage of Sharebuilder's $12 monthly fee, you can buy an awful lot of stuff at a cut-rate fee.

brian_igo · #3 07-20-2002, 04:01 PM

Ditto what George said.

quasar · #4 07-20-2002, 04:34 PM

I must admit to not knowing how investment clubs work. I've always gone solo. Can someone fill me in?

Janice

Magick1 · #5 07-20-2002, 04:39 PM

Well, my understanding, and mind you, I haven't been in one, or done much research, is as follows:

You pay a certain set amount, whter it's monthly fee or part of your paycheck, to be in the group.

You have meetings with the group, everyone does research on stocks that fit the groups ideal P/E ratio, or what ever criteria they have set up, and then as a group you invest.

You keep track of the investments, make suggestions for buy/sell, and work together to make your money grow.

I have heard that some pool the money and other that do not pool, but you invest your money with the groups assistance.

(Others, correct me if I am wrong anywhere, as I haven't dealt with an investment group)

magenta321 · #6 07-20-2002, 04:45 PM

My mom started a stock club and it was difficult. They've since disbanded. She did it with people she worked with, and it was difficult to get everyone to show up for meetins. A lot of times there was no way to hold a meeting without members of the E board missing.

The biggest problem was attendance (but it could have been because it was a group of hospital employees, so no one had set shifts... there was no way to predict when you were working a day or a night), and getting members to pay their dues. In fact, their dues were rather low, but whenever they would get paid, it was usually by members who owed hundreds of dollars.

They started off well, but then my mom wanted to take a less activve roll in the club. Once she wasn't the president anymore, everything went downhill. You need really dedicated leadership, and their group didn't have it any more.

If you can find a dedicated group, I think it's a great idea. But, like all other groups, it's difficult to find really dedicated people. Good luck.

**mjfrombuffalo**[$] · #7 07-20-2002, 10:44 PM

my option wasn't there

I haven't joined an investment club because I don't know of any, my friends aren't doing any, and I don't want to join an investment group with people I don't know.

Anyone up for one here?

frazzledspice · #8 07-21-2002, 01:26 AM

I belonged to an investment club when I first moved to St. Louis. Most of the ladies were more seasoned investors (most were at least ten years older than I was at the time.)

I learned quite a bit. At that time, we didn't have online tools at our disposal. We had to look up Value Line and S & P and hand computer stats on long, laborious charts when it was our turn to be on the "investigative committee."

I left when I moved, and joined another in South Dakota that was just forming (it's much better, I think, to join an established club than to try to get one going.)

I think that the primary benefit of joining an investment club is educational. We didn't invest enough in either of the clubs I was in ($20 a month) to make a huge difference in our net worth, no matter how well the investment club's portfolio did.

I'd be happy to join an established club here if I could find one. I know there are several that meet in our local library, but I don't know if they have openings or if the meeting times are compatible with my schedule.