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Investment Club Overview

An investment club is a group of individuals who make a commitment to contribute a fixed sum of money each month into a common pool of funds, and then use that common pool of funds to invest.  Most commitments last for a period of 2 years, with a redemption window at the end of the second fiscal year.  Commitments range from as little as $50 dollars per month to $1000 dollars per month.

Benefits

• Group investments to lower the overhead cost.  For example if a team contains 100 members, and each trade costs 5 dollars to execute, then an equity trade of $5000 would have an overhead of 0.1% or 1/10 of a percent.  Where as if you were trying to invest $50 dollars per month on your own, that same transaction would have a 10% overhead.
• More members have more ideas!  This is the most powerful statement of all, and cannot be under valued.  The way the club works is that each month, 10 members will do research and present their proposals to the other members.  Then the entire collective club will vote on the 10 proposals.  The winning proposal will be followed. 
• Review Of Operations.  You don't have to follow the news every day.  The group will be large, and will have mechanisms to contact each other in the event of urgent market news requiring action.
• Ability to perform "Hedging" operations.  Because of the large pool of monies that will be collectively invested, the club will have the ability to use options to protect gains and minimize losses in the event of market swings.  For most small time investors, performing Delta and Gamma Neutral strategies are outside of their facility because of transaction costs.  As the club gains equity (and wealth) the members will be able to effectively hedge their bets.
• All operating costs are transparent and open.  Don't worry about some mutual fund manager getting rich on your dime.  The management cost will be almost as low as possible because, there will be no paid stock analysts.  The only costs incurred will be the legal fees to set up the club, the accounting fees, the transaction fees, and any applicable service fees.  This should keep the entire overhead below 1%.
• Tax deductions for expenses.  Because each club will be set up as a corporation or LLC, you will be entitled to use the overhead expenses as tax deductions on your personal income tax (where applicable).
• Learn the techniques of the professionals.  By joining the club and participating you will gain valuable insight and experience doing what the "big boys" of Wall Street do.
• Meet and socialize with smart like minded individuals.  These clubs are open places for you to meet socialize and talk with other like minded investors.