The Inner Workings Of Investment Clubs

by David Jenyns on September 14, 2009

Like other clubs, investment clubs ordinarily meet once a month. Meeting less frequently than that slows activity to an unsatisfactory pace, more frequently places a greater demand on the members’ time than most are willing to sacrifice. Some clubs set the ante as high as $100 per month. The average club investment is about $260 a month.

Whatever the amount, most investment clubs feel that it is absolutely essential that all members invest equally. If individuals are allowed to have two or more memberships, or to invest twice or three times as much as the others, it will also be necessary to give them two or three votes in club affairs, thus unbalancing the share-and-share-alike mutuality which is basic to successful operation of this kind of organization. Twice as much money is not automatically a guarantee of twice as much good sense when the votes on investment are cast.

Voting rules are, again, a matter of group decision. Investment clubs can be a good way to decide where and how to invest your extra money, particularly if you feel that collaboration is beneficial.

Discover The Secrets To Stock Trading Online And Start Making Your Investments Pay


Previous post:

Next post: