Club of the Month: December 2002

Purses to Portfolios

BACK: Susan Brown, Carrie Bring, Pam Thomas, Cindy Towne, Kathy Schmidt
FRONT: Debbie Ingamells, Carla Hess, Peggy VanZutphen, Linda Souvenir

CHICKS: How and when did you start your club?

PURSES TO PORTFOLIOS: Cindy started assembling the club in January 2002. Our first on-line meeting was in February (Super Bowl Sunday). We all have various links to each other. For instance, Cindy went to college with Carrie and Sue, Pam is Carrie's neighbor, Debbie is Kathy's sister-in-law, Linda is Peggy's daughters teacher, and Carla is Cindy's "boss" and friend.

Where are you all from?

P2P: We can be found in several western states... Washington, Oregon, Utah, and Colorado.

What prompted you to start a club?

Cindy: I set a goal in January 2001 to read 20 financial/investment books. Chick Cheryl (who I use to model and perform with) told me about the Chicks' book so I read it and got inspired to start a club. I knew I would never stick to a club that met weekly face-to-face, so my only chance was to do it on-line. I didn't know of anyone else with an on-line club so, I started my own!

Debbie: I didn't start the club, but I'll tell you why I joined. I recently had separated from my husband of 25 years. I was learning to handle my own finances and wanted to do it right. I also was looking into the social aspects of the club. I needed positive people to be around, e-mail, and care about. The group has provided that kind of support for me. I feel welcomed and cared about. We share bits of our personal lives, our triumphs and our tragedies.

So, do you just meet online? Or do you meet face to face?

Cindy: We met online each Sunday evening for the 1st eight months. Now we meet every 1st and 3rd Sunday of each month. We have one face-to-face per year!

Debbie: To start with we met weekly online. It was like the old days of television. 8 pm Sunday used to be the Ed Sullivan Show Time. Now it was the Purses to Portfolios online time. Nobody in my family better be on the phone at 7:55.

How did you come up your club name?

Cindy: I asked everyone to come up with 5 or so ideas. We went through quite a few duds. Then Kathy came up with Purses to Portfolios -- it was a winner! We felt it described the transition from simply sticking your money in your purse because you didn't know what else to do with it, to wisely investing it in a diversified portfolio.

Kathy: While looking for a great name I thought an acronym would be fun and easier to type. I thought of a couple and then perused through the CLNE titles and some were already taken! P2P's having an F2F sounded like fun, so along with a few others, I submitted it for a vote. It won the majority and I even put it in my e-mail address! Then the nick names took off, like 'Coach' for the Pres., 'Douney and Bourke' for the VP, 'Purse Strings' for the Treasurer, etc.

How has your portfolio done? (as if 11/9/02)

P2P: Well, 3 months ago, with our earnings divided, we could only afford a cup of coffee each... but not at Starbucks! Now we can go to a Pixar movie and take a friend!

STARBUCKS
On Aug 12, P2P bought 75 shares at $19.72. ($1479.00). S&P on that date was 903.80.
At closing on 11/9 SBUX was 22.57 ($1692.75) S&P was 894.74.
Starbucks up 10% S&P up 1% (BIG WINNER)

PIXAR
On 9/16 P2P bought 16 shares at 46.60 ($745.60). S&P on that day was 891.10.
On 11/9 PIXR closed at 51.95. ($831.20). S&P was 894.74
Pixar up 13% S&P up .4% (REALLY BIG WINNER!!)

PFIZER
On May 8th P2P bought 35 shares at $36.49 ($1277.15).
At closing on 11/9/02 PFE was 33.87 ($1185.45). S&P was 894.74.
PFE down 7.7% S&P down 17.76

That puts our total portfolio up 5.93%. Which makes our profits at $207.65 (not including expenses). That's $23.07 each!!


What's been the greatest benefit of being together as a club?

Cindy: I am wishy washy in making decisions about money. With 8 other people the decisions become clear. It's like the Millionaire show when the audience votes and one answer shoots above the rest... no brainer!

Debbie: Knowledge is power. Power is enabling me to improve my self worth. The friendships are so important to me. Here I have a voice. The atmosphere is upbeat and positive. This can be hard to achieve in this market!

Linda: I think the greatest benefit for me is learning from such wonderfully, intelligent, fun, kind and supportive women. No question seems to be a "dumb question" and I appreciate that so much... since I come from ground zero in investment knowledge! As we teach our second graders, "Take risks, make mistakes... this is how we learn!"

Carla: An incredible opportunity to get to meet women from all over the West, with different views on careers, life, children, investing, and everything else. We are all like glue now, and really enjoy "seeing" each other on line each Sunday!


What's your club's biggest challenge and what do you do about it?

P2P: With our busy lives, it was difficult to keep us all involved in the weekly postings. Our club has sustained such strong momentum that I feel the weekly postings are the key to maintaining the bond we have. So we came up with the idea of the "Latte Tax." If you're a Rotten Egg and don't post that week (we're thinking of changing it to 2 consecutive weeks without posting) you have to send each member a certificate for a Starbucks Latte! I must say, it's very motivating. And, yes, we own Starbucks in our Portfolio!


Any good club stories to tell?

P2P: At our face-to-face meeting, we all seem to remember Carla and Zeke (Debbies dog) having a comical affair! Carla's love of dogs prompted her to call Zeke up on her lap, where he proceeded to lick her face as if were coated in Peanut Butter... and I mean Zeke was after every last drop! All of us were in tears laughing so hard for what seemed to be several minutes of "Carla and Zeke's Affair"!

Also, leave it to Pam to be the queen of comedy during our on-line meetings. At times our dialogue can lose it's "G" rating. One evening Pam told us that she had to keep minimizing her screen during our chat whenever her husband walked by. (Don't worry Ron, it's all good!)


What advice do you have for new clubs?

Linda: Have fun!!!!!!

Carla: Have fun, don't take things too seriously, and learn learn learn!

Debbie: Stick with it! We've learned to go with the ups and downs. Laugh a lot. It should be fun. Subscribe to some investment magazine or newspaper. I have learned so much by reading mine and listening to what others have read. Trust your intuition. There is a reason we Chicks are blessed with it. If it doesn't feel right don't buy it. Expand your vision. Don't buy what everyone else is buying. Remember Tech stocks? Think Long Term. This is not a get rich quick club. Buy stock to build a portfolio, not just to have an immediate return. Talk to businesses. When I shop, I talk to the store managers, clerks, and delivery people. I find out a lot about the companies, and how they treat their people. Most people are glad to share. Post some new tidbit every week on your boards. This keeps the flow of knowledge going for everyone in your club. Keep it fun. Have a glass of wine while you have your meetings on line!

Cindy: I remember Chick Karin saying in her book that the success of your club will depend on the people in it. I couldn't agree more. Our club is made up of such a variety of people yet we have so much in common, and that is what makes us so strong. Carla mentioned earlier that we're like glue; it's really true. When we skip a Sunday night meeting, we all feel like something was missing from our week. I'm not sure how to "make" this happen... I'm just glad it did!