In Peter Lynch's book Learn To Earn he mentions something about investment clubs. A investment club is simply a group of people who meet regularly in one of the member's houses to discuss stock picks, and vote on which stocks to invest in. Votation is by fhe rule of majority. The members also contribute a specified amount of money each time to the pot, to which they invest. According to Peter Lynch, members of investment clubs do better than if they invested individually because of the added benefit of discipline when it comes to major corrections. The cooler headed members of the group will vote out the ones who do panic.
I think it's interesting idea to form this investment club.
Nowadays most people simply join online groups in social networking sites, but investment clubs add variety and a more personal and formal structure to the organization.
If you'd like to form an investment group, kindly comment below.
Here's the direct quote from page 138 of Peter Lynch's Learn to Earn Book:
In thr Philippines, it is similar to the cooperatives that we see cropping up in many corners of towns, and villages.
No comments:
Post a Comment