Investment Clubs

[Jessica08]

Hi everyone. I am looking for information on investing clubs, but I am having a hard time even finding information on existing ones. Can anyone help me with the websites of some investment clubs? Any help you can give would be greatly appreciated!

 

[maddythebeagle]

check out Better Investing/NAIC...they have been around a long time with support for investing clubs...I had been to a meeting several years ago and wasnt too impressed since I appreciate index funds and the individual stocks that I hold are more long term for dividends....

 

[retire@40]

Interesting to see an interest in investment clubs at this point in time.

Usually that happens when the stock market is at a peak and everyone wants to jump on the bandwagon.

Maybe another way to look at it is that it's a sign that the market is bottoming and there's an interest on buying on the cheap.

My only advice is to find a good treasurer who knows how to keep track of cost basis and can prepare your K-1 forms in time to file your personal tax returns.

 

[tjon72]

I would heartily recommend valueforum.com...A lot of folks there really know what they're doing.........

 

[clifp]

Check out the national association of investors corp (NAIC). You can type in your zipcode and find a club near you.

Also the Motley fool has a pretty good section on investment clubs and a discussion board.

I joined an investment club a year out of college, a very valuable experience even if it we didn't make much money. We were in a bear market .

In addition to learning about investing, I got to drink some good wine fully tax deductible

 

[HFWR]

Investment club; is that what you beat your FA with?

 

[Kathryn48]

If I were interested in an investment club, I would go to meetup.com to see if there are any local groups in your area to meet with, but I am not sure whether you're interested in something with people or just online.

 

[2B]

Why would you need to join an investment club to buy low cost, index mutual funds?

 

[Jessica08]

Thank you everyone for your suggestions. I will look into all of the websites you mentioned.

 

[Jessica08]

Investment club; is that what you beat your FA with?

Haha, I like that

 

[ERD50]

Why would you need to join an investment club to buy low cost, index mutual funds?

Many of us need to try to beat the market (only risk-adjusted counts as 'beating') for several years before buying low cost, index mutual funds. A club is one way to do it.

Then, buy low cost, index mutual funds.

-ERD50

 

[Lsbcal]

Hi everyone. I am looking for information on investing clubs, but I am having a hard time even finding information on existing ones. Can anyone help me with the websites of some investment clubs? Any help you can give would be greatly appreciated!

Why not just go with the Bogleheads site? They even have some get togethers including some regional ones if you want face to face contact. It's a good way to get a dose of investment ideas and you don't have to just be into index funds (but there are fanatics with a clear bias that way). Much better info there then investment clubs in my opinion.

 

[Spanky]

Start your own investment club
Start Investment Club - A Few Words of Caution Regarding Investment Clubs

 

[2B]

Many of us need to try to beat the market (only risk-adjusted counts as 'beating') for several years before buying low cost, index mutual funds. A club is one way to do it.

Then, buy low cost, index mutual funds.

-ERD50

I tried for many years to "beat the market" before I finally admitted that when I thought I was I was only deluding myself. If any of us can really do that, Harvard would love to hire you to manage their endowment.

Please research the available studies. 80% of all mutual funds fail to meet their market benchmark in any given year. Any that do beat their benchmark for over 5 years becomes a superstar until it doesn't.

Given that you need to "beat the market" how do you think forming a committee with equally (or more so) ignorant investors will help? I've done technical analysis, fundamental analysis, trend-following and even used "inside information." I lived on the edge, felt the wind in my hair and felt like I owned the world at times. I didn't "beat the market."

To each his own. While you are "beating the market" keep good records to either reinforce your success or give you the data to just go to asset allocated indexing.

 

[ERD50]

2B, I agree with you 100%. I should have added a few words to my post for clarity.

I really did mean 'try' to beat the market, and meant to imply (when I said 'then, buy low cost, index mutual funds.') that one is almost certain to fail (club or no club).

So I'll be clearer, an individual investor, or a club, or a professional, or a group of professionals, is very unlikely to consistently beat the market on a risk adjusted basis. Add tax implications, and it's tougher.

I think there was a thread a while back on momentum investing, and IIRC, the proponents of this method never came up with a mutual fund that used the technique and that also beat the market on a risk-adjusted basis.

It is very tempting for people to ignore the 'risk/volatility' component when they say they 'beat the market', but often, a position in a riskier index fund (or leveraging that fund) will provide superior returns, with less volatility, and less cost.

-ERD50