A typical agenda for the Golddiggers Investment Club in Gold Canyon, Ariz., looks like many others but has some interesting twists. One particularly interesting item concerns a watch list of up to eight stocks. These stocks are assigned to two study groups.
A week before the monthly meeting these groups get together with their assigned stocks, research them and pick one that group members wish to present to the club for consideration. At the meeting each group presents its one stock and a lively debate ensues as to which one is better.
After this stage the winning stock is compared with the portfolio’s existing stocks to see whether it’s an upgrade over one or more existing holdings. The club then votes to see whether it wants to make any changes.
After this vote Golddiggers does a summary of the meeting. At this point the floor is open to all members to say their peace about anything, regardless of the topic. This has given members a sense of “buy-in” because they know the entire group has heard their concerns.
Golddiggers developed this agenda over time in response to decisions it made regarding club operations and portfolio management. The club has decided to limit its portfolio size to one stock per member, as this was found to be a reasonable amount of work to be divided among the group. To avoid members falling in love with “their” stock, the club throws the names of each stock in a hat, and every Christmas members select one that they will follow for the next year.
I really like this practice. It puts a fresh set of eyes on every stock and allows the entire club as a whole to look more objectively at existing holdings.