Joining an Investment Club
December 17, 2009
Yesterday we looked at some investment club tips that were personal considerations to think about before joining an investment club. Today my former co-worker looks at the importance of evaluating the investment club itself and a few things to look for.
Defined Investment Goals
Each member of the group needs to have the same goal in mind and the same methods of achieving that goal. If some members of the group are only interested in making a profit, instead of learning more about investing and the details involved, there will be a divided set of goals. All members of the club should have the same philosophy about investing.
Long Term Goals
Members of the club should be clear on what the long term goals of the club are all about. There should be an understanding established of what amount of the profits that are realized from investments are going to be held and which amount is going to be reinvested immediately back into the stock market. There should be an equal amount of growth and stability that is agreed upon.
Investment Club Meetings
It’s important that members of the group are able to attend all meetings. When there are decisions that need to be made about ongoing investments and future investments it’s important that all members are part of the decision process. If the group decision is held up because some members don’t attend regularly the endeavors of the investment group are jeopardized.
Investing Accountability Checkpoints
It will be very important that the investment club have checkpoints in place that account for all investments, profits, losses, and other money issues. These checkpoints should be readily available for all members of the club to read at point in time. For example decisions on buying and selling stock. Before any stock is purchased or sold it will be required that all members of the investment club are part of the study of these stocks and part of the final decision.


All posts by Ben Edwards
Comments
3 Responses to Joining an Investment Club
Trackbacks/Pingbacks