Steps to Take If You Want to Start an Investment Club
The path toward a successful investment group begins with the first meeting. Gathering members and finding a place to congregate are the first steps.
WHO: Clubs can be started among friends, co-workers, residents of a condominium complex, members of a church or of a club. Sometimes finding members is as simple as inviting a few friends and asking them to bring other participants as well.
WHERE: Community centers, club rooms, libraries, homes, churches or even restaurants can be used as a meeting place. Often brokerage houses will allow clubs to have their organizational meeting at their offices.
Once potential members are gathered, they should get acquainted. There is a lot to discuss at the first meeting.
WHY: The National Assn. of Investors Corp. cautions new members to keep three things in mind. Because this is a long-term undertaking, members should get along well, agree on an investment philosophy and be prepared to share the work.
WHAT NEXT: Members must select officers, set a regular meeting date and decide upon how much money will be contributed initially and on a monthly basis. Monthly contributions can be as little or as much as the members decide.
WHEN TO START: Investors often are inspired to launch a club when market indicators are high and stocks have had a long upward run. When the market has crashed or is declining, people get scared off. Actually, an investment club can be started anytime, regardless of the state of the market. An overheated market may mean that stock prices are too high, but beginners can accumulate cash and prepare for the time they can buy good stocks at low prices. When the market is in the doldrums, good students of the stock market can dig up many bargains.
FINDING HELP: Investment clubs and individual investors can seek assistance from the National Assn. of Investors Corp. For guidelines and literature on starting a club, write to NAIC at 1515 E. Eleven Mile Road, Royal Oak MI 48067, or telephone (313) 543-0612.
LOCAL CONNECTIONS: Russ Novak serves on the local board of directors of NAIC and will help organize new clubs. He can help gather material and will attend the first meeting as an adviser. Novak’s telephone number is 273-5778.
NAIC will hold an Investor’s Fair at the Rancho Bernardo Inn on June 13. Prospective members are welcome. For more information, contact Novak.
