Investing clubs are becoming trendy again, writes John Wasik in a column for Forbes.
John, who was a keynote speaker at BetterInvesting’s National Conference (BINC) in Chicago May 15-18, recently reports: “Investment clubs make more sense than ever and are coming back. They are not only great ways to invest, you can do it in a social setting and have fun.” “It’s a perfect activity for anyone from a pre-teen to a retiree,” he adds.
“The social aspect balances out the casino mentality of some investors and tempers it with the discipline of running the numbers on a company’s balance sheet and projecting future growth.”
As an example, John points to the granddaddy of BetterInvesting clubs, the Mutual Investment Club of Detroit, which launched in 1940 and grew to more than $6 million in assets. Many members drew on their holdings to help finance anything from their retirement to a college education, collectively withdrawing about $4 million.
“It’s hard to invest profitably by yourself. Doing it in a group will give you a sense of camaraderie and focus that you can’t find on your own,” John says, suggesting that support for those who want to start an investment club can be found through BetterInvesting.
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 borne 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, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit www.betterinvesting.org/openhouse or call toll free (877) 275-6242.