In Focus

Whenever there is a change in our portfolio, I simply divide it by ten and within seconds I know where I stand. Could you imagine being part of an investment club with 32 people and every time you looked at your portfolio you had to divide by 32? "Let's see... we've made $9,000 as a group, so let me figure that out. $9,000/32 = something like $300." (This is how I do math -- a lot of "somethings".) Now imagine the calculations if the group makes $13,426. Pray someone blurts out the answer before your eyes cross. Can you say "Not easily divisible by 32"?

Secondly, and more importantly, each person in your club has to be accountable. If Lisa is assigned to research a company and doesn't get the work done, who's going to notice if there are 31 other members? Matter of fact, it's possible that only one other person in the club even knows Lisa, so it might not be detected if she didn't show up for a meeting. Believe me, Lisa knows this, too... so why do the work? It's silly, but it's human nature. It's how some people operate. (Not me of course, I never skipped a class in college). But if day in and day out, one of the club members is working their butt off doing research, and Lisa consistently misses meetings,  someone's going to get peeved.

So it makes sense to have a small enough number in your club so everyone gets to know one other and is accountable to each other. An added bonus is that the better the club members know each other, the greater the chances are of you staying together. You cheer each other on, and support each other through the ups and downs. You become more than an investment club; you become friends.

But, you also need to have enough people in the club to get a decent amount of work done. A 32-person club would be great if everyone did their work, but they won't. And besides, there's all that gnarly division. A two-person club would make for a great bond but it's not enough to diversify the workload. Where's the balance? What's the perfect number of people to have in a club so you can still bond, have enough different opinions, but divide up the workload?

Need I answer that?

Articles focusing on the Steps To Starting An Investment Club

Step 1: Begin with the Right People

Step 2: Establish Your Club Size

Step 3: How Much Per Month?

Step 4: Format Schmormat

Step 5: The Teeter Totter of Timing

Step 6: Be Prepared, Partner

Step 7: To Spank or Not to Spank

Step 8: About Our Message Boards