September 24, 2001 -
Summary
Condolences in the wake of tragedy
We at ICLUBcentral are deeply saddened by the recent tragic
terrorist attacks and wish to extend our deepest condolences to
everyone affected. We sincerely hope that you, your families, and
your friends are safe and secure. Our prayers are with all of
those whose lives have been altered by this monstrous act.
We encourage those who wish to assist in the relief effort to
contact the American Red Cross. Call 1-800 GIVE LIFE for
information on donating blood or 1-800 HELP NOW to make a
financial contribution. You can also visit the Federal Emergency
Management Agency for information on other ways to help.
Progress: A few things you may not know
by Rich Beaubien, VP Marketing
Normally, this area of our newsletter would be devoted to telling
you about how great our products are--you know, a marketing blurb
kind of thing. Most of you probably tend to just skim this area
in case we've hidden some gems in here. Well, pay attention--this
newsletter is a bit different.
I want you to know that we are not just sitting here answering
the phones and collecting your money. We are listening to your
feedback and continually improving our software.
As loyal customers, let me give you a hint: Soon you'll see an
update to your NAIC Club Accounting--yes, that "Update" button on
your screen in NCA 2 really does something. We'll let you
know when to start clicking it for an improved version of NCA 2.
You won't even need to click, however, to enjoy an updated web
product. We usually add new features to NAIC Online Club
Accounting without much fanfare. Unless we brag about them, the
subtle changes tend to pass unnoticed. Well, let me just say
that a major revision is in the offing: we have completely
overhauled the site, inside and out. We'll keep you informed as
we implement this improvement.
Many other changes are in the works. You'll find, for example,
that our desktop and online programs are becoming ever more
tightly integrated. These changes are often a result of NAIC
members letting us know what they want. Or how we may be in
error. And we've got ideas for you too: some new tools, some
better service.
We monitor several forums on the net and elsewhere for your
feedback. We poke through NAIC's Compuserve forum and the Motley
Fool while religiously following NAIC's Club Treasurers List and
I-Club List.
We feel the criticism, revel in the praise, and hear your
suggestions. What we receive from these channels are an important
part of the process. Some of it "stings" but hey, we all learn.
We want to make sure these products continue to be the best
available.
Our response to your input may not always be immediately
apparent, but we are listening and we are responding. We are
listening, so share your thoughts with us. Remember that--we
will listen. Write to us at ideas@iclub.com or pester me
directly at rich@iclub.com. I look forward to hearing from you.
Special offer from ICLUBcentral and TD Waterhouse
Want $100?
We are offering special rebates and cash incentives to any
customer who opens a
new account at TD Waterhouse.*
Over the coming weeks, receive $100 in cash when you open an
individual account with a minimum balance of $1000 through the
following link:
http://www.tdwaterhouse.com/cgi-bin/rbox/welcome.cgi?adcode=000092
Soon, we'll let you know about a special offer for new TD
Waterhouse club accounts as well. Stay tuned!
* Accounts must be opened in accordance with terms described on the
promotional page. This offer is for a limited time.
ICLUBtherapist Answers Clubs' Questions
Dear Doug:
I am a member of the Classic Ladies Investment Klub in Santa
Barbara, CA. We have 9 members and 11 stocks in our current
portfolio with a total value of $17,000. Approximately how many
different stocks should an investment club of our size be capable
of managing in our portfolio?
- RgrRisdall
Dear RgrRisdall:
One of the golden rules of investment club portfolio management
is diversification. A portfolio that includes stocks of multiple
personalities and demeanors is not in need of clinical
treatment-- it's actually a good thing. The stocks in your club
portfolio should represent a variety of industry groups and
should vary in size, and no single stock or sector should be
over-represented.
NAIC recommends that you aim for your portfolio to be made up
one-quarter large companies, one-quarter small companies, and the
rest in between. This diversification strategy will help you
reduce some of the risk in your portfolio, particularly if one of
your holdings falls flat or if a specific industry experiences
problems. In addition, throughout the history of the market,
small and large companies have tended to perform well at opposite
times. Having a good mix of stocks can help smooth out the
returns your portfolio will generate when compared to a portfolio
made up of only a few non-diverse stocks. Of course, an
all-equity portfolio will not be immune from a correction or
crash in the stock market, but that's where your long-term
approach will help you see through the short- term gyrations of
the market.
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