Time sells out of book clubs originally appeared on BloggingStocks on Tue, 10 Apr 2007 08:32:00 EST. Please see our terms for use of feeds.

When it comes to getting started in stock investing, many of us (myself included) look at the volume of information that's available and instantly become nearly overwhelmed with the sheer magnitude of it all. There's so much to learn about the markets. There are so many directions one could go. How does a person who just received a $2000 windfall take that money and invest it for himself or herself? How to find a broker? How to create and diversify a reasonably safe portfolio? There are a million questions that can be asked. Where are the answers and how much information is actually necessary to learn to make a safe start? I don't have that $2000 windfall to invest but I have that desire so I had a look around and I found out about investment clubs.

Investment clubs are kind of like mini mutual funds. They can be a very small coalition of amateur investors who have pooled resources to buy stocks and create a portfolio, or they can actually be groups that become large enough to form their own limited liability corporations. The magic lies in the fact that they don't have to bear the management fees associated with true mutual funds and the members most often vote on the choices of stocks their money will be invested in. This significantly reduces operating costs and helps small investors realize better returns from their invested funds.

Members of investment clubs have some serious advantages over the small investors who try to do it alone. They get input and support from the other club members. They get the benefit of a wide range of investment viewpoints. They get purchasing discounts through the increased volume of each stock purchase they're involved in and they get the comfort of knowing that there are other investors who are willing to take the same risks they are. It's a team concept and some people have gotten very wealthy utilizing it.

Continue reading Investment clubs: Getting started can be easier than you thought

Investment clubs: Getting started can be easier than you thought originally appeared on BloggingStocks on Mon, 18 Dec 2006 14:22:00 EST. Please see our terms for use of feeds.