Although it’s been a few years since “Investment Clubs” was published, it’s recently generated media buzz again as the definitive text for folks who want to get together with friends and/or family and learn how to make money on the stock market.
The syndicated column from Motley Fool, “Ask the Fool,” gave the nod to the book late in June in response to a reader’s comment:
The reader writes: “Decades ago, my investment club’s methods of seeking out undervalued and out-of-favor stocks led me buy shares of Gap Inc. I did very, very well with it, primarily because of two factors: (1) I didn’t sell it just because it was a winner, and (2) I benefited from the power of compounded growth over long periods. I recommend holding at least a portion of your winners as long-term investments. — M.R., Port Townsend, Wash.”
The Fool’s answer: “While shares of Gap have experienced downturns and stagnant years, they have rewarded patient investors well, averaging annual gains of 18 percent over the past 25 years, 12 percent over the past 20 years and 11 percent over the past decade. It has been paying a dividend for decades, too.
“This is true of many solid, growing companies. You don’t have to find and invest in obscure companies to succeed. Those interested in forming or joining an investment club should visit betterinvesting.org, or read Investment Clubs for Dummies by Douglas Gerlach and Angele McQuade (available new or used at Amazon.com and Half.com).”
We couldn’t have said it better ourselves.
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.