investment club

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How are you!

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Got a great idea to share with you today πŸ™‚

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It comes from Ugo Chiulli, who entered our T-shirt giveaway the other week and said he wanted to rock the “index and chill” shirt at his investment club, and as soon as I heard those two words together, I immediately begged him to write something. For us!

And he complied! thank you brother!

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Here they sent me down… Such a great idea – we need one of ours!!


J. money,

I am writing to tell you how a group of people who wanted to buy some property as an investment started an investment group.

A friend of mine (whose name is actually J – yes, just the letter J) is part of a group of people who went on “annual people trips”. During these visits they discussed buying property as an investment. He soon learned that he would need more money than “extra money” to actually be able to purchase the property.

Not losing focus, he decided to start an investment club, where he would continuously deposit and invest his money monthly. They use the online platform Bivio to track it all, and they got a lot of help from the book “The Millionaires Club: How to Start and Run Your Own Investment Club and Make Your Money Grow.”

Two members had some experience in stock trading and hence decided to invest their money in the stock market. The goal is always to buy a property. They met for a few months and came up with an operating agreement and bylaws.

Monthly purchases were (and still are) $150/month per member. There have been 12-14 consecutive members. Additionally, the mindset was that the monthly purchase was extra money that would not be remembered in the extreme case where they “lost everything”. Money where they can experiment with investing, take risks and don’t worry.

This is how the Investment Club started.

The goal of monthly meetings is to present one or two stocks to consider investing in. Members present alternatively. Investments are voted on. Votes to invest IF and how much to invest. Various investment strategies are also reviewed and tested. Additionally, all investments are reviewed on the anniversary of their acquisition to determine whether the investment still meets the needs of our portfolio. Votes are made to sell or keep investments on review dates. All decisions are made through votes.

A funny story is that at their first meeting, the first presentation was for a stock (DEK) that was “vetoed” for purchase, but turned out to be a big winner over time. The group constantly references that missed opportunity.

For the first few years they were not fully invested. Often up to 50 percent is cash. They also bought and sold based on unrealistic goals and emotions. Reflective reporting showed that “tons” of money were lost by selling too soon (often when the market was down but then went back up, and higher than the original). Overall, he did fine though.

I joined the group 3 years after they started (about 10 years ago). I was recruited by J. We work together. I was no investment pro, but I had about 20 years of varied investing experience. He thought I might be a good addition to the group. I think I like it too πŸ™‚

We’ve got all the money we’ve invested since joining. I have gained a lot of exposure to the stocks offered by members that I have added to my portfolio. I have contributed to the betterment of the club by helping to make changes to the Bye-laws and Operating Agreement.

Stock selection is up to individual members. Various sources are used:

“A Random Walk Down Wall Street” by Burton Malkiel – A great read for providing a proven and consistent way to set investment expectations and achieve stable returns that match market performance. The Motley Fool’s Investment Services – Provides suggested stocks and a steady stream of content that shows why recommendations are made. TREFIS – A great tool that shows the relative stock price and price makeup of a stock which provides a great comparison to current prices. “The Only Investment Guide You Will Ever Need” by Andrew Tobias – provides a terrific A to Z explanation of what you need to know about investing (from the piggy bank to the stock markets).

The group began to flourish (thanks to a great investment climate over the past 10 years). We actually reached about $500,000 in value about 5-6 years ago. Now we have finally started looking for real estate opportunities. We primarily looked at private REITs (Real Estate Investment Trusts). No one fulfills our needs… till the last.

I introduced the group to a real estate investment opportunity that we felt met our needs. Buy for $100K with an investment time frame of 4-5 years. It provides for 6% distribution which is paid monthly. Investment goal is to get 2 times on the original funds at the time of investment sale.

Additionally we have invested (through FundRise) in a small business as well as a very small commercial REIT.

At the height of the market nearly a year ago, the group’s valuation reached $1 million! not bad!

We have gone through some changes since then. Two of our members have resigned (friendly resignations), and one member has sadly passed away. The market has also come to a standstill. We are a small group but still very viable!

The best is yet to come!

– yugo

PS: Below is a rough outline of the agenda for our meeting. While the group has grown as investments, the monthly meeting remains the same:

Check-in and Approval Minutes – 5 minutes Treasurer’s Report – 15 minutes Review “Moves” in the prior month Review all account balances and purchasing power Review all past accounts payable (late payments) Our stock / Review Holdings – 15 mins Review Stock Old Business for Annual Review – 15 mins New Business – 30 mins Due Submissions Announcements Postpone Meeting Make Money!


How great, isn’t it? Not just for the potential income, but for all the camaraderie and learning experiences and the ability to really only hang out with people who “get it” and are actively working to better themselves! Such a rarity seems offline to me, and how fortunate it is that so many people around you have invested in this sort of thing. (not a joke)

Also – love that all club contributions should also be “extra” money so you’re not playing with the original savings and regretting nothing. I would 100% join a club like this if I had a set up in my hood…$hit, I’m half tempted to start myself right now after reading about this! This is the perfect social club!!

And I think that for people like me who are so caught up in their indexing methods that it will help me to be more open to other strategies and opportunities as well… but really I find that together every month. It will be fun to meet and talk Shopping with friends!

So thanks yugo! Appreciate you all for taking the time to write this and answer my 101 follow-up questions πŸ™‚

If anyone else has any, or wants to share their experiences of being part of a club like this, comment below so we can all learn from it! Happy investment!

PS: I’ll also make my investing club a “drinking” club where you have to bring a 6 pack of beer or a bottle of whiskey to each meeting so other people can enjoy πŸ˜‰ But you can’t start drinking until after the presentations/ debate- Nothing is blurred in the dispute, it is worth…

*Links to the above books are Amazon Affiliate Links

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Best apps and resources I recommend:

Best Budget Templates & Spreadsheets (Free) – The Best Free Budget Templates from Around the Community! Personal Capital I use* (free) – A great app for tracking your investments and net worth. You can check out an in-depth review here from a millionaire who checks it daily! You Need to Budget (YNAB)* (free trial, then $14.99/month or $98.99/year) β€” one of the best budgeting methods in the space, with new users saving $600 on average points (free 6-month trial, then $5/mo) – This is one of my favorite apps for automatically saving money, so much so that I came on board as a consultant when it launched! Acorn* ($3-$5/month) – Another great app. It automatically completes your daily transactions and invests the difference in a portfolio for you. Honey (free) – By far my favorite coupon service. Click the honey button whenever you’re about to buy something online, and boom – it finds and applies discounts. My favorite $$$ article! – A roundup of the best articles I read each week from around the community. (My personal newsletter that comes out every Friday) My Favorite Blogs + Books *Some of these are affiliate links that help keep the lights on here

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