Club of the Month: January 2003

Phat Chix Investments

STANDING left to right: Rebecca Sacra-President, Lara Weatherholtz, Ginger Arnold, Carol Mikhail, Stephanie Daugherty-Treasurer. SITTING left to right: Barbara Chisholm-Vice President, Diana Wiger-Treasurer, Michelle Mathews, Susan Ware (Not pictured: Agnes Bloodsworth)

CHICKS: Tell us how you met and how long you've been together as a club.

PHAT CHIX: Our president, Rebecca, became interested in starting an investment club after reading Chicks Laying Nest Eggs. She asked a group of women ranging in age from late 20's to 50's (some stay at home Moms, some empty nesters, some career women) to join her. We've been together a year now.

Where are you located?

PC: Outside of Washington, D.C. in Ashburn, VA.

Do you meet online, or face-to-face?

PC: We tried meeting online but after two meetings found that even though we were pretty computer savvy, it was difficult to have meaningful discussions. We all had too much to say! Now we meet once every two months at someone's house. Each member volunteers to host and provide treats.

How did you come up with your club name?

PC: Our "young" crowd led the move for our name Phat Chix Investments (PCI). Our "older" members had to be instructed in the younger set's jargon. "Phat" to us was "fat" definitely not a good thing to be labeled but the "youngsters" convinced us that "phat" was hip and positive.

How has your portfolio done during this tough market cycle?

PC: We started investing just as the market tanked so overall our portfolio has suffered. One exception is a mid-cap pharmaceutical company that continues to do well and is up 19%.

We are continuing to buy well-researched companies in diverse fields and of different capitalization so we think we are positioned to do well when the market rebounds. At least, our dollar is buying more shares right now!

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

Getting to research several companies and have more information to make wise investment decisions. Meeting new people and learning from each other.

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

PC: Research has been a bit of a struggle. Everyone was at different levels of understanding about investing and how to research companies. Our greatest challenge was trying to get everyone doing the same type of research. We started out with the "Chick's Dozen" but decided we needed more depth so we created our own parameters and our member, Agnes, designed an Excel spreadsheet for our use. That has made comparing companies using the same criteria so much easier.

How did your club react to being chosen as Club of the Month?

PC: We spent many emails and discussions on what to wear for our "club of the month" picture. It was harder for us to agree on colors than it has been to choose a stock in which to invest our hard earned money!

Any advice for new clubs?

PC: Be patient with one another, not everyone can grasp it all right away. Don't be afraid to get your feet wet, experience and challenge are the best learning tools.