Forum Archive Index - January 2000

["Mike Hudson" <mikehudson@clear.net.nz>]

Re your enquiry about investments clubs. There are 10 of us in ours and we started it in 1997 to have a bit of fun and hopefully make some money. We have had both. We put in $50 per month each and the object of the club is to invest in speculative stocks.Our first two investments were disasters, Mosaic Oil (MOS) which we bought at $A38 cents which is now worh $A19 cents and Asia Gold Mining (ASG)  which we bought at $A14 cents and is now worth zero after being suspended and then delisted from the ASX (however all is not lost as it is being reinvented as an Internet company and will no doubt shortly be rising from the ashes).

After that we got cold feet and bought AIRVA and FLB as recovery type stocks and we are a bit ahead on bothe of these. Our next two punts were on the ubiqitous ITC which we bought for 20 cents and sold most of for 84 cents and AQL because it seemed somwewhat exotic.   We currently have $5000 in the bank to spend so any suggestions would be welcome.

 

The point it is important that the purpose is clear to all members, in our case to speculate; all members were aware that there was a possibility of losing their total investment. Other clubs may be more conservative. It is a must to have a clear set of rules covering such things as

• Duration of the club
• Number of members
• How members can enter and exit
• How the investment decisions are made
• Who has the signing authority on the bank account
• Whose names the shares are to be registered in (Share regsistries will only accept individuals or joint ownership)
• Who keeps the books.

If it is any help please e-mail me off list at mikehudson@clear.net.nz and I will send you a copy of our constitution which is fairly simple.

 

I also discovered by surfing around today that there is a lot of info on the net. This looks loke a good place to start, it is a list of Investment clubs on the net and you can get ideas form it. I would suggest that the UK clubs would be a better model than the US ones.

 

http://www.computerland.net/~missouri/investment_club.htm
<http://www.computerland.net/~missouri/investment_club.htm>

All you need to do is to get a like minded group of friends and/or workmates together and get going

 

Cheers

Mike H

 

 

 

 

 

-----Original Message-----
From: Stuart Allen <sj.allen@ihug.co.nz>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Friday, 14 January 2000 6:43 PM
Subject: [sharechat] Date: Fri, 14 Jan 2000 18:43:37 +1300

Mike,

 

I was very interest to see that you belong to an investment club.

If it's not to much trouble, could you sent me some information

about these clubs. I sometimes find that most of the people that

I know, care little and know less about the economy and business

in NZ and the world. (one guy I work with said print more money

to make the poor rich)   : )

 

stuart

sj.allen@ihug.co.nz

 

There maybe others in this forum that might be interested as well.