A Look at Some of the Local Investment Clubs People Join for Camaraderie and Learning
An Appetite for Something That’s More Fulfilling
Name: Investment for Profit (Beverly Hills)
Members: Six
Meeting frequency: Every six weeks
Minimum monthly investment: None
Inception: 1994
Performance: Average annual return greater than 30%
Major holdings: McDonald’s, Southwestern Bell, General Electric, Merck, GTE, Intel
Background: The all-female club is set up as a partnership. Smith Barney broker Pat Johnson serves as an advisor and teacher. She spent a year teaching the group investment basics before it decided to invest. Now it invests “fairly reasonable” amounts whenever opportunities arise. The group does not have minimum monthly investment requirements, but all members currently have the same amount invested.
Quote: “Another woman and I felt a need to discuss some of the key issues that concern women today--issues that somehow aren’t discussed in the normal polite conversation at luncheons and parties. We wanted to zero in on subject matter that really affects our lives on a deeper level. What seemed to rise to the surface was the need to talk about economics.”
--Joan Selwyn, a Beverly Hills-based artist and graphic designer
Small Circle of Friends Provides Much-Needed Info
Name: Combined Power Investment Club (Culver City)
Members: Five
Meeting frequency: Monthly
Minimum monthly investment: $50
Inception: 1993
Performance: 15% average
Major holdings: Biomed, Kellogg’s, Gap, Lands End, Hollywood Park, Century Telephone
General: All-female group was formed by four friends who had known one another since childhood. A fifth member, graduate student Sherri Porter, was invited to join later.
Quote: “I had been looking since the late 1980s for a way to get into investing, but I was afraid of losing money. My mom had invested in a mutual fund and lost a lot in the stock crash in 1987. I didn’t want the same thing to happen. I wanted a situation where I could get as much information as possible.
“The club was the best alternative because I don’t have time to investigate everything.”
--Sherri Porter, a Los Angeles graduate student
That Knowledge Just May Rub Off on the Kids Too
Name: Earnings Per Share (Burbank)
Members: 16
Meeting frequency: Monthly
Minimum monthly investment: $30
Assets: $26,000
Inception: 1985
Performance: 28.4% average for past two years
Major holdings: Microsoft, Abbott Labs, DSC Communications, Clayton Homes
General: Only a few of this club’s original members remain. After several members left, the club advertised for new members about three years ago, building its membership to 16. Membership is diverse in every way--sex, age, investment experience and national origin.
Quote: “My husband wanted me to get involved in investing, but I was not interested. The first couple of meetings, I was dragging myself. Now I am in the club for three years. My kids are involved in investing too. My son, he used to tell his dad, ‘Let’s buy this or that.’ Now and then, he made a mistake, but that’s how you learn.”
--Pramila Shah, a Burbank investor
Seasoned Members Look at Variety of Investment Types
Name: Invanon (Glendale)
Members: Eight
Meeting frequency: monthly
Minimum investment: $100
Assets: $12,000
Inception: March 1996
Performance, Major holdings: Just starting now
General: The club was started by a group of seasoned investors who want to use computers to invest. The club considers many different types of investments, not just stocks.
Quote: “I have always been interested in investing. I’ve had a few stocks of my own since I was just a child. . . . I learn a lot by being in clubs. I like the education and the exchange of ideas.”
--Edwin Williams, president of the National Assn. of Investment Clubs, Los Angeles-area Council
Campus Colleagues Gather Mostly for Fun, Camaraderie
Name: University Park Investment Group (USC)
Members: 17
Meeting frequency: Monthly
Minimum investment: $300 annually
Assets: approximately $30,000
Inception: 1984
Performance: 40% over the past 18 months
Major holdings: Boeing, Ahold (a European supermarket chain), McDonald’s
General: All members are on the faculty or staff of USC
Quote: “None of us are in this to make a lot of money. We are in it to have fun. In addition to being able to play the market, this is an opportunity for campus colleagues to get together and talk about something other than work. The fun and camaraderie is as important as the financial rewards.”
--Dixon Johnson, director of the international services office at USC
Investing Is Like Rearing Children--It Takes Patience
Name: Women’s Investment Network (Huntington Beach)
Members: 18
Meeting frequency: Monthly
Minimum monthly investment: $25
Assets: $61,862
Inception: August 1988
Performance: 15% return
Major holdings: Sara Lee, Gillette, PepsiCo, Disney, Starbucks, Wal-Mart, Tambrands
Background: The group, formed by Girl Scout mothers, had its first meeting in August 1988; it made its first investment in January 1989.
Quote: “I’ve learned it takes a lot of patience to invest in the stock market. You can’t rush in and make a killing. It’s almost like having children. You have a baby, and then 21 years later you have an adult.”
--Pat Chick, club president
Even After 10 Years, Decisions Made Without Derision
Name: North Orange County Investment Club
Members: 46 active (17 inactive members have moved away but left money with the club)
Meeting frequency: Monthly
Minimum monthly investment: $20
Assets: $214,600
Inception: Sept. 4, 1986
Performance: 15% to 20% annual return
Major holdings: AT&T;, Colgate-Palmolive, PepsiCo, Motorola, Wal-Mart, Quaker Oats, General Electric, Home Depot, Downey Financial, 3M, Wendy’s, Kmart.
General: Formed as the result of a lunch date between Don Kimmel, now owner of Santa Ana Chrysler-Plymouth, and the late Bert Hathaway, both of whom had been Chrysler Corp. field representatives. The group expanded to 45 members as neighbors, church members and others joined; then a waiting list was started.
Quote: “One of the most amazing things about our club is we have never had an argument. Forty-plus people can sit in a meeting, decide what [stock] to buy, smile and go home.”
--Don Kimmel, founding member
Making the Money ‘Work for You’ Is What It’s All About
Name: Rusty Sam Investments (Sherman Oaks)
Members: Two
Meeting frequency: As needed
Minimum monthly investment: none
Assets: $80,000 gross (net assets of $20,000 after subtracting loans on properties)
Inception: October 1987
Performance: Average annual return between 15% and 20%
Major holdings: Coca-Cola Femsa (a Mexican soft drink distributor), Novell and real estate
General: Formed after the stock market crash of 1987 by a group of about 35 Cal State Northridge students. Original club eventually disbanded as founding member Wayne Lipschitz realized he was doing most of the research. Now Lipschitz, 31, a controller at Wolfgang Puck Food Co., invests with one partner, Guy Nadivi, 30, a computer software consultant. The two talk on the phone almost daily and schedule occasional meetings.
Quote: “I don’t think it’s going to grow into anything full time. But it’s an investment for the future. It’s making your money work for you.”
--Wayne Lipschitz, founding member
They Say Retirees Enjoy Gardening and Yacht Work
Name: Pacific Mermaid Syndicate (Oxnard)
Members: 15
Meeting frequency: Monthly
Minimum monthly investment: $50
Assets: $25,000
Inception date: May 1994
Performance: Gain of about 35% over two years
Major holdings: PepsiCo, Parametric Technology.
General: The club was founded by Marilyn Morrison, now 70, an Oxnard retiree who has been involved in investment clubs since 1979. Most of the members are retired women--a few work--and their ages range from about 50 to 70. Most are also members of the Pacific Corinthian Yacht Club, where their meetings take place.
Quote: “I have CNBC on the TV before I get out of bed in the morning. I don’t have time for the soaps or anything else.”
--Marilyn Morrison, founding member
Profiles by Kathy M. Kristof, Patrice Apodaca and Lori Haycox
