Tight budgets, wild markets hurt investment clubs

Comments (2)
bivio wrote:

As in any activity that is about learning something new, some people do better at it than others. There are certainly long term investment clubs that have done very well. I think anyone who has ever thought of an investment club as some sort of get rich scheme was deceiving themselves.

It is true that being in a club is a social activity for many, but what is wrong with that? Investing is an interesting hobby and something that is fun to share on a regular basis with a group of like minded friends.

I don’t think you should downplay the many things that are positive about being in a club and spending some time each month learning about investing. It is something that you don’t really learn unless you really try doing it. A club gives you a cost effective way to do that.

Here is a recent note we posted on Facebook summarizing some of the reasons we see to be in an investment club.

http://www.facebook.com/#!/note.php?note_id=10150409704141445

Laurie Frederisen
COO
www.bivio.com

Dec 13, 2011 10:53am EST  --  Report as abuse
Kamie wrote:

The primary benefit of belonging to a BetterInvesting club is the structure and support provided for learning. Many people find investment education overwhemling yet understand the importance of it, and participating in an investment club is a low-risk way to learn about equity investing. Club members jointly analyze stocks and make investment decisions, and they share the risk associated with the investment. Being able to intelligently discuss equities with knowledgeable, unbiased investors before purchasing shares is a tremendous advantage. This is exactly the reason BetterInvesting was founded 60 years ago in Detroit, Michigan by everyday people like you and me.

The club structure also allows experienced investors who have been through downturns and volatility to counsel newer investors who might not be as able to put these market events in context. BetterInvesting clubs also have the advantage of being able to reach out to our dedicated volunteers and other like-minded investors for support.

BetterInvesting clubs and members are not professional investors, and yet we continue to actively invest and thrive in the current market. We know that investing regularly in high-quality growth companies at reasonable prices is key to our long-term investing success. We also know that we need to reinvest dividends and earnings and diversify our portfolios. BetterInvesting clubs and members are disciplined investors. We view the current volatile market as an opportunity to find quality growth companies “on sale.”

At BetterInvesting we know that anyone can become a successful long-term investor if they have the patience and the determination to follow commonsense investing principles. And we believe that everyone owes it to themselves to find out how.

You can learn about becoming a successful long-term investor by visiting us at www.betterinvesting.org/openhouse.

Wishing you better investing,

Kamie Zaracki
CEO, BetterInvesting

Dec 13, 2011 4:19pm EST  --  Report as abuse
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