Pennsylvania resident Dan Nestlerode says he’s been associated with investment clubs as a member, broker and investment adviser for the past 48 years and he’s “seen the best and the worst of what investment clubs have to offer.”
Some of the clubs he’s joined have been mostly social, Nestlerode writes in an article for the website StateCollege.com, noting that in one club “we drank as much beer as we invested. Nevertheless, it was an enjoyable experience as we were all affable and none too serious about our investment opinions.”
Today, he’s in a club that washes down more investing education than suds — though the members are far from adverse to a good time.
“My current investment club started in 1994 and has grown from a few thousand dollars to over $300,000 in assets with ten members. The club has grown from a share price of $10 to the current price in excess of $70 per share.
“Compounded over the nineteen years, that equates to an annual growth rate between 10 and 11%. While the club is populated with conservatives and liberals politically (which makes for interesting conversations), the focus of the club is on making money in the markets.”
He points others interested in launching investment clubs in the direction of BetterInvesting, formerly known as the National Association of Investment Clubs, a national nonprofit educational association.
“The National Association of Investment Clubs (NAIC) can help those struggling or starting a new club with accounting software and extensive educational materials as well as a periodic magazine called BetterInvesting. They even have an annual conference,” Nestlerode notes.
Members of his club meet monthly and “thrash out” their buys and sells over breakfast. While the club’s done well, he confesses that on occasion they’ve purchased some stocks that were “real turkeys.” But they’ve more than made up for it.
“While our club has some social aspects, it is really focused on investments as its primary concern, with a commitment to making our money grow faster than the overall market. We use NAIC’s (BetterInvesting’s) accounting software, a local tax accountant and run the operation like a business,” Nestlerode sums up.
“… Our success seems to be related to a clear business purpose and a commitment to invest enough money to make the club demand our continued attention.”
The Keystone State is a great place to pick up some investment education.
BetterInvesting chose Pittsburgh as the place to hold the 62nd Annual BetterInvesting National Convention 2013, popularly known as BINC, which runs from Sept. 19-22 at the Sheraton Station Square Hotel.
Our keynote speaker is Ron Muhlenkamp, CFA, the founder and president of the Wexford, Pa., based Muhlenkamp and Company, Inc., an investment management firm that also offers the Muhlenkamp Fund (ticker: MUHLX), a no-load mutual fund. He’s the author of Ron’s Road to Wealth: Insights for the Curious Investor. His speech will be “Natural Gas: An Energy Game Changer” on Saturday, Sept. 21, from 9:40 a.m. to 10:30 a.m.
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.