Setting Initial Goals for Your Club
Congratulations! You've just started your new investment club. The members have
all signed the paperwork, you've set a regular meeting schedule and elected officers,
and -- now what? Obviously, you want to get started building a portfolio, but where
exactly do you begin?
Most new clubs focus on three main goals:
Making that first stock purchase
Every member should be encouraged to actively participate in one way or another.
The basic essence of investment clubs is that they are a group activity, so if a
few members don't get involved, the entire club can suffer. Perhaps a less-experienced
could be responsible for making copies of StockCentral Data reports
of the stocks the club is considering for purchase, for instance.
The second goal is education.
Many clubs form an Education Committee within the
club, and members rotate serving on the committee. The committee often chooses topics
based on questions that have come up at recent club meetings. Committee members
might, for example, make a short presentation on a financial topic like Annual Reports
or on tips for knowing when to buy or sell a stock.
Finally, clubs should get their feet wet by purchasing that first share of stock
as soon as possible. Don’t be one of those clubs that sits around for a year or
longer and never makes any investments. Buying a few shares of stock gives the club
something to begin focusing on. As you follow your initial purchases, you'll surely
learn a thing or too, even if some of your early purchases turn out to be mistakes.