Investment clubs have existed for decades. In recent years they have increased in popularity due to surges in the market, mutual funds, expendable income and a general fear or going it alone when making investment decisions in a mystifying environment.
Investment clubs are often comprised of friends or co-workers who usually meet monthly to discuss companies, market trends and decisions about which stocks to buy and sell and when to do so. They pool the information for private use or contribute a small sum of money that is deposited in a joint account for the common investment of the collective group.
Other clubs operate purely as social groups by making faux investments. These clubs can meet regularly and members can focus solely on learning about investing without risk while having a good time. They can learn about investing while voting together on stocks they would invest in and tracking the results. They can also establish separate faux portfolios in competition with each other for faux results. These faux clubs have advantages and disadvantages. Advantages include no real risk, no monthly investment contributions, no treasurer or investment officer responsibilities, no income tax reporting, and no pressure for contributions during economic downturns. Disadvantages include missed opportunities, lack of sustained interest other than the social aspects of the meetings, and lack of discipline toward meaningful meetings when no financial impact results from either positive market insights or eroding discipline toward diligent investing education.
Business Connection USA LLC offers a new twist on faux investment
clubs….the Energy Investment Club. It offers sustained interest in regular
meetings by adding another common component of members of the club as well as a means of funding the monthly contributions to a real investment club once the club believes it is ready for real investments. By using a simple energy deregulation affinity plan to aggregate members with a common initial bond and a second reason for regular attendance at club meetings, the group builds familiarity with one another in a social setting and a low-energy business opportunity. The savings on energy costs and earnings from the affinity program fuel the social cost of participation and allow members to afford to make monthly contributions toward the common goal of forming a true investment club with real investments, and this expectation of future real investments provides the incentive for sustained attention to the education aspects of the club.
The result is an investment club with all the advantages of a serious club and a faux club. Risk-free, no investment, real earnings from the affinity program, sustainability, and a real opportunity for investments and investment earnings achieved through common investment education in an atmosphere promoting discipline to achieve success while having a good time with friends.
For more details on our version of a faux investment club, the Energy Investment Club, contact us at Business Connection USA LLC.