Kitchen-Table Investor Review

Feb
20th
2008

Filed Under Books, Investing, Investment Club
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kitchen-table-investor-book.jpgThere’s a good summary of a book called The Kitchen-Table Investor: Wealth Building Strategies for Working Families over at Get Rich Slowly.

The part that caught my eye the most, perhaps because it’s not mentioned enough, was the second “step” entitled “Join an Investment Club”. I’m actually in the process of organizing a club with some of my co-workers. We haven’t bought any equities yet, but that is coming next month

I see the Investment Club organization as an opportunity to learn more than an investment vehicle. As JD writes, he has most of his money tied to index funds, but holds a little aside to play with on individual stocks. My investment club money will be my “play money”, but it won’t have as much exposure/risk as it would if I were investing on my own. With investment clubs, the entire club votes on which stocks to purchase, so it takes more research in a stock to convince the club members that a stock is a smart buy. The club atmosphere also removes some of the emotion associated with a stock purchase since transactions usually only occur on a monthly basis. Your in it for the long haul…it’s definitely not a day-trader’s environment. And hopefully the knowledge the group provides will make my main investment vehicle decisions that much smarter.

More posts to follow regarding my own investment club experience. Once I have an actual financial stake in the group, I’ll integrate it into my Quicken program and will hopefully watch it grow!

DK