The 18-member all-women investment club was founded 30 years ago, the Omaha World-Herald reports recently. Through the years, members have taken out money for other life goals, including down payments on new homes.
“You know, wouldn’t this be great to think I’ve invested in this club for 30 years, and I use it to pay for my trip to Africa, my lifelong dream? It kind of gives you a good feeling to have gotten something out of it,” says Lucy, who was joined by her husband, Bob, on the adventure.
Other members have never touched their stash, the article notes, including one whose holdings are at $86,000.
The BetterInvesting member club owns shares in 15 companies: Apple, Berkshire Hathaway, Cisco, Coca-Cola, F5 Networks, Fiserv, General Mills, Johnson & Johnson, National Oilwell Varco, Pfizer, Sysco, Target, UnitedHealth, United Technologies and Walgreen.
Notable successes mentioned in the story include the club’s purchase of Berkshire Hathaway Inc. stock for $39,500 in 1987 and 2002 that’s now worth $237,000. The women may get some good karma by sharing the same hometown with Warren Buffett, the “Oracle of Omaha” and CEO of Berkshire Hathaway.
Members find that it’s not just money that keeps their club going. They enjoy the friendship. The women come from all walks of life and include a judge, a doctor, a former candidate for the U.S. Senate, an artist and a CPA.
“The group is very, very amicable,” Gail Yanney, a retired physician, tells the newspaper. “We enjoy each other and we enjoy what we’re doing. We’re not there to one-up each other. Every one of us has a very nice portfolio of accomplishments.”
Tips for Starting an Investment Club
- Assemble 12 to 15 people who want to learn how to invest their money.
- Set goals, such as learning about investments and making a reasonable rate of return over the long term.
- Choose members who trust each other and are compatible during meetings, typically each month, and who will make a long-term commitment.
- Set up a legal partnerships for tax purposes and have officers and a designated person to exercise buy and sell orders through a broker. Write bylaws to govern issues such as monthly contributions and voting on sales or buys.
- Expect members to attend monthly meetings, make monthly contributions of $20 to $50, research stocks or families of stocks and participate in monthly decisions on buying and selling. Make sure members participate equally rather than one or two members dominating.
- A treasurer records the value of each member’s share, the club’s stock holdings, the amount of gains or losses for members’ individual tax returns and the history of buying and selling stocks.
- Consider joining an association that supplies software support and tips on organizing and running a club.
Sources: BetterInvesting, ICLUBcentral.
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.