There’s strength in numbers when you’re leveraging money on the stock market, according to a recent article in Black Enterprise Magazine. “Investment clubs are a great way to learn about investments and to get more knowledgeable about the stock market,” says Lanta Evans-Motte, a financial adviser at Raymond James Financial Services in Beltsville, Md.
With an emphasis on the Black Street Investment Club, a group of 16 Lumberton, N.J., boys between the ages of 10 and 16 who learn about financial literacy through their club, the article outlines how to successfully launch your own club and share in the power of numbers.
Dennis Genord, BetterInvesting’s director of education and chapter development, tells Black Enterprise Magazine that investment clubs should seek good-quality growth companies, especially:
- small companies (revenues under $500 million) with a growth rate greater than 15 percent;
- medium-sized companies (revenues between $500 million and $5 billion) with an anticipated sales and growth rate of 10 percent to 15 percent;
- and large companies (revenues greater than $5 billion) with an anticipated sales and earnings growth rate of 7 percent to 10 percent.
“These are companies that tend to grow consistently over time in terms of revenue and earnings,” the magazine quotes Genord.
While you’ve got the magazine open — and you can save it onto your desktop as a PDF — don’t forget to look at the next financial story on page 32. Mellody Hobson, president of Ariel Investments L.L.C., a Chicago-based money management, firm gives some sound advice in “Stay Cool During a Market Shutdown.” She wrote in the wake of Superstorm Sandy, when the market closed for two workdays.
Among Hobson’s suggestions, draft a stock shopping list for when the market reopens. “Great companies with little exposure to the troubles at hand may go on sale,” she writes.
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.
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