“Across the country, investment clubs are making a slow and steady comeback,” gaining steam again after the banking fiasco and market nose dive a few years ago, according to a recent CNBC report.
A CNBC article and two videos profile a pair of clubs: The women-only 2000ic of Ojai, Calif., and the Chicago-NW Burbs Trading Club in Illinois. The California women have a portfolio, now worth about $120,000, that includes Apple, Alaska Air, Visa and TripAdvisor.
The Chicago group doesn’t share a portfolio: “Nick Fosco saw most of his 401(k) decimated in 2008, and he decided to take investing matters into his own hands. … Fosco’s group does not pool its money to invest. Instead, members meet and discuss their own research and trade suggestions for their individual portfolios,” CNBC says.
“My 401(k) has basically recovered everything that I lost in 2008,” Fosco tells the network.
CNBC’s findings echo what six investment clubs report in the upcoming May issue of BetterInvesting Magazine:
Charter member Shelly Shuman says that the Wise Investment Club of Forsyth, Ga., “kept our belief in the markets and a long-term view. If you look at it (the market) over time, you will see that it rises, it dips and it corrects, and it goes back up again. We want to be on that high ground.”
Larry Reno, treasurer of Mutual Investors of Atlanta, says his club stuck to its standards. Reno tells BetterInvesting that Mutual Investor’s portfolio lost 20 percent to 25 percent of its value during the down period, “but we’ve made it all back and more. You have to hang in there like a rusty nail.”
Tough times do call for smarter investing, however, Reno tells writer Garrison Wells. “We took out stock in our portfolio that was not worthy of holding and found stocks that were still growing and bought those.” he says. “We kept ourselves fully invested, and yes, we had losses, but now our portfolio is well past where it was before we took the dive.”
BetterInvesting Magazine will be published in digital form April 18 and begin appearing in homes the week of April 22.
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was born out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at http://www.betterinvesting.org/investing/landing/openhouse/blog/index.html or call toll free (877) 275-6242.