Investment clubs

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16. Running the first meeting

The club exists! The time has come to hold the first meeting and choose the first investment. Without being excessively formal, the meeting should have a clear structure, incorporating the following:

1. Minutes of the inaugural meeting and matters arising

   The Secretary will hand out minutes of the Inaugural meeting.

2. Report from the treasurer

   The Treasurer's report at this stage will be something of a formality, as the Club hasn't got any investments yet. All it will disclose is how much cash the Club has. This is important, though, as members need to know how much is available for investment when they come to discuss which companies to invest in, and how much to put into each.

3. Discussion and decision on first investment(s)

   At this stage, the Club needs to build the backbone of its portfolio, so start with investments in your low risk section.

   • Ideally, each member will chip in with suggestions, and back up the choices with reasons why the share is worth buying, and why it represents good value at its current price.
   • It can be useful to jointly decide what industry sector the first investment should be in, as this narrows down the field of possible companies.
   • Make sure you have access to the business pages of a newspaper at the meeting, and other sources of information. Access to the internet can be useful for checking fundamental data.
   • Use the price/earnings figure and yield figures as part of your deliberations.
   • Remember that in the long term, dividend income reinvested helps to build a portfolio.

4. Allocation of tasks

   The meeting may ask one or more members to research a sector or a company before the next meeting, so that they can make an informed recommendation to the other members.

5. Date, time and location of next meeting

6. Any other business

   For example - during AOB a member may come up with a suggestion for a new member or a change to the strategy or rules.

1. What is an investment club? 2. A simple explanation of how it works 3. Why join an investment club? 4. Deciding on your aims 5. Joining an existing club 6. Preparing to launch a new investment club 7. The draft constitution and rules 8. Drafting the investment strategy 9. Example of an investment strategy 10. Attracting members to your club 11. Preparing for the inaugural meeting 12. The inaugural meeting - appointment of officers 13. The inaugural meeting - key decisions 14. Things to do after the inaugural meeting 15. Starting the processes 16. Running the first meeting 17. Regular meetings - the key to success 18. The cash account 19. The capital account 20. The asset register 21. The annual general meeting 22. Tax 23. Performance measurement 24. Dealing with a member leaving 25. Conclusion

• ProShare Investment Clubs Looseleaf Manual
• The Motley Fool Guide to Investment Clubs
• The Company of Successful Investors