| Investment clubs have been around for centuries, | | | | split equally among members. |
| successfully making money for investors of all kinds. | | | | 2. Reduced Risk of Personal Loss. All investors |
| Obviously there are numerous benefits to investment | | | | understand that there will be times when money is |
| club association memberships, or else they simply | | | | lost and that it is important to stay the course and |
| would not exist. For people who are new to | | | | not jump ship. By pooling financial resources, an |
| investing, it is likely they have not even heard of | | | | investor takes less of a hit to their personal financial |
| these type of investing clubs, nor would they be | | | | accounts because their individual investment was not |
| aware of their many advantages. | | | | as large as the whole. This makes it much easier to |
| While there are many benefits, the following outlines | | | | wait out the down times and reap the rewards of |
| three main benefits that are worthy of consideration | | | | being patient. |
| by even the newest investor. | | | | 3. Circle of Knowledge. An investment club offers |
| 1. Larger Pool of Money. Investment clubs are able to | | | | insight from many eyes and ears. Members have |
| make more money faster because the members | | | | regular meetings, sharing their combined experience in |
| pool their resources. A good recommendation for | | | | determining what is happening in the market and just |
| clubs is to have each member invest the same | | | | where money can be made. Individual members |
| amount. This is easy to implement when just starting | | | | benefit from other members in this manner, |
| a new club, but a little more difficult when trying to | | | | increasing the group knowledge. There is also a |
| jump into the middle of an existing one. For example, | | | | national association of investment clubs available for |
| when a new club is formed, each member may only | | | | clubs to gather even more information. |
| be required to put in $150. All profits are thereafter | | | | |