Conway First Investment Club

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Conway First Investment Club

• Carleton H. Brown, President

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About BetterInvesting

• BetterInvesting is a non-profit organization
  providing investment information, education and
  support that empowers members to become
  successful, lifetime investors. Founded in 1951,
  BetterInvesting has provided investment education
  to more than five million people and is a charter
  member of the World Federation of Investors,
  which provides investment education in over 17
  countries worldwide.
• BetterInvesting currently has 161,670 members. Of
  these, 129,081 belong to one of 16,174 local
  BetterInvesting clubs, which provide networking
  and practical investing experience for members
  nationwide.

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BetterInvesting Cont.

• Investment Clubs
• The average investment club is four years old and
  has 11 members
• The average club member invests 84 per month
  through club programs
• The average club invests 927 of member funds
  monthly
• The average investment club portfolio is worth
  86,700
• Regional Chapters
• BetterInvesting has 95 regional chapters
  supported by over 1,700 volunteers. Regional
  chapters plan, organize and present investment
  seminars, workshops, computer events and investor
  fairs throughout the year.
• BetterInvesting programs and member services are
  designed to complement the organization's four
  core investing principles.
• Invest a set amount regularly
• Reinvest earnings dividends and profits
• Invest in quality growth stocks and equity mutual
  funds
• Diversify your investments

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Conway First Investment Club Central Arkansas
Chapter

• CFIC is a community of like-minded people
  committed to becoming better, more informed
  investors. CFIC is a registered partnership that
  was officially formed by a group of professional
  individuals in Oct. of 2006.

• CFIC plans to invest its partners money in
  stocks for the education and benefit of the
  partners. The goal of the partners is to learn
  how to effectively select companies for
  investment, and to profit and learn from the
  experience.
• Proud members of the Central Arkansas Chapter of
  BetterInvesting.

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What Membership Can Mean

• When you join an investment club, plan to stay a
  member until your retirement years.
• Be aware In the first year or two, many clubs
  show losses or only small gains. However, as
  members become more knowledgeable and the amount
  of money under management grows, gains often
  begin to increase exponentially.

• Results of that knowledge Typically, when a
  club forms, only two members own personal
  portfolios. After five years, almost all do.
  Currently, nine out of ten NAIC club members buy
  securities for their own accounts in addition to
  making club investments.

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Member Expectations

• Formal Education Program
• 4-5 hours/month study time
• Attend local Chapter classes
• Members committed to long-term program
• A club is a way to invest for your
• future -by building both your
• knowledge and investment PROFITS
• with others.

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Member Expectations

• Learn to analyze stocks
• Take a turn presenting stock purchase
  consideration
• Be a willing Stock Watcher and report on
  companies
• Pay club dues promptly
• Complete homework and assignments in a timely
  manner
• Help with the annual audit
• Be willing to train for and take a turn as an
  officer

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Its A Partnership

• A Partner is a person who has signed the
  Partnership Agreement, been voted into the club,
  and signed a statement agreeing to abide by the
  Partnership Agreement and By-laws of the Club.

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Partnership Agreement

• Partnership Agreement
• ?? Broad Objectives/Club Philosophy Outlined
• ?? Legal document controlling club
• ?? Partners Capital Accounts
• ?? Management
• ?? Sharing of Profits Losses
• ?? Accounting
• ?? Withdrawing criteria -associated fees
• ?? Voting criteria -majority percentage
• ?? Modified infrequently
• ?? Signed by all members who receive copies

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Mission Statement, Objective, Key Principles

• Mission Statement Invest the partners money
  using a long-term approach in stocks with the
  goal of maximizing return while minimizing risk
  and for the education and benefit of the
  partners. It is not a get rich quick scheme in
  terms of financial awards. We are dedicated to
  helping our family, friends, and ourselves
  achieve better lives through a coming together as
  individuals to pursue financial security,
  education, and camaraderie.
• Objective To educate all partners in the areas
  of investing and the stock market, achieving at
  least an average of 14.9 compounded annual
  growth rate on all securities through long-term
  capital appreciation, with moderate to high-risk
  acceptance.
• Key Principles
• Invest Regularly, Regardless of the Market
  Outlook
• Reinvest All Earnings
• Invest in Growth Companies
• Diversify to Reduce Risks

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Officers Committees

• President
• Vice President
• Secretary
• Treasurer
• Assistant Treasurer
• General Board Member
• General Board Member

• Club Committees encourage preparation work before
  meetings allow more efficient meetings
  stimulate discussion
• Club Committees
• Education
• Verification (conduct an annual verification of
  the records ).

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Club Committees

• Stock Presentation Committee
• Presents 1-2 stocks each month
• Presents an Industry Study each month
• Food/Refreshments Committee
• Responsible for food and/or drinks
• Stock Watcher Committee
• Follow up on club holdings
• Member who recommended stock should not follow
  that company once it is bought
• Remember that investment clubs work so well
  because several people share the work

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By-Laws

• A partner should thoroughly read and be familiar
  with the CFIC By-Laws. The By-Laws include but
  not limited to
• Partner definition responsibilities
• Meetings
• Procedures for transactions (buy sell)
• Guests invite
• Contributions
• New members
• Withdrawal of a member

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How Many Members?

• Ideally, a club should be big enough for members
  to divide the work without it becoming burdensome
  for any individual, yet small enough to give
  everyone a sense of direct involvement and
  personal interest. Therefore, our club will not
  exceed twenty members.

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Next Meeting

• Time Place January 28th, 2006
• Old Business Membership
• New Business
• Speaker Mr. Tom Martinka, President of Central
  Arkansas Chapter of NAIC
• Philosophy of Long-Term Investing
• How to Analyze Stocks (SSG)

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Where Do I Sign Up?

• Q A
• Adjournment
• Enrollment Club Social Time!