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:
· Active participation
· 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 club member 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.