A few years ago, Geo wanted to join an investment club. I tagged along and didn't say much for the first few meetings. Slowly I became more interested.
This local group meets 1 - 2 times per month. We learn about investing, following the principles found at betterinvesting.org. Each month we contribute $25, pool our money, and jointly purchase stock in various companies. Geo says it's like being in a mutual fund, but with more control of the portfolio.
I've not only learned how to read stock reports, SEC filings, and stock charts, I've also learned about many industry sectors and companies that drive our economy. I've learned about coffee company marketing and acquisitions, new drugs offered by pharmaceuticals, drilling in the Marcellus shale region of Pennsylvania, internet search engines and on-line gaming in China, "gorilla glass," and solar energy, just to name a few.
At our meetings we discuss various companies, their financials and future projections, and decide which companies to sell and which to buy. Our little group of nine is actually earning money.
Yesterday I presented a company that I had researched. Our group voted unanimously to buy 25 shares of stock in this company, under $40/share. We connected to the broker by internet and placed the buy order immediately, right from the living room where we were meeting. I felt I had "arrived" as a full participant. This was the first time I presented a new company, not just reported on progress of those we already held. So now I wait with bated breath to watch the stock grow! If not, well, all that we learn is so well worth it.
I recommend the betterinvesting method as a proven way to build a portfolio. It's been a great experience for an amateur like me.
