| If you are someone who would like to know more | | | | investment club is the next step. Setting up a club |
| about investing, joining or starting an investment club | | | | takes some work but the National Association of |
| can be a rewarding and educational experience. Many | | | | Investors Corporation (NAIC) has all the information |
| people feel more comfortable about learning about | | | | you need to get started. |
| investing with other average folks when compared | | | | How Do They Work |
| with talking to an "expert". | | | | Successful investment clubs focus on learning as well |
| Is it a good fit for you? | | | | as investing. Guest speakers, like a local broker or |
| If you have been putting off learning about investing | | | | investment analyst, may be invited from time to time. |
| and setting any money aside, the discipline of a club | | | | Most people join a club to explore new ideas and |
| could be ideal. Many people join a club to have a group | | | | discuss investing issues. In the early sessions of a |
| that they can talk to about investing and apply what | | | | club's life, education might be very introductory, |
| they learn to their own portfolios. If you have $20-$50 | | | | covering how to read a balance sheet, an earnings |
| a month to set aside and invest through a club, you | | | | report and the club's financials. Soon the club might be |
| might find membership is for you. | | | | learning new ways to value stocks or discussing a |
| Even experienced investors use a club to gain | | | | book about Warren Buffett. |
| information about stocks that they do not have the | | | | Clubs Are Work: Why Not Try a Money-Free Club? |
| time to research. Many hands make light work. All | | | | Many clubs have fallen by the wayside when |
| members benefit from the work of other members. | | | | members realize that the time involved is significant. |
| Work? Yes you need to contribute more that cash. | | | | Often the treasurer feels this first. Because of this, |
| Don't think that you can take a free ride. The pooled | | | | groups that want to get started but are a bit |
| account may not be significant when compared to | | | | intimidated at the paperwork, try a "money-free" club. |
| your 401(k) but everyone has a stake and needs to | | | | Some money-free clubs will focus on education only. |
| commit. | | | | Others will set up fantasy portfolios on a web site and |
| How Do These Things Start? | | | | buy and sell and do all the work, but with no real |
| Groups of friends, neighbors or co-workers start | | | | money in. |
| talking about investing and find that a starting an | | | | |