Why You Should Join An Investment Club

investment club cheesecake

The reason for investment club meetings

A few months ago, I wrote a post about How To Start An Investment Club. I listed 10 steps that you can follow to start your own investment club. I am a big fan of investment clubs and am a member of a couple myself. Here are a few of the advantages that investment clubs offer.

Advantages Of Starting An Investment Club

You Can Pool Your Resources

Investment clubs give you the ability to invest in stocks and mutual funds that you would not be able to invest in as an individual investor. For example, 1 share of Berkshire Hathaway alone would cost you over $130,000. That’s a hefty sum for just about any investor. In an investment club, you can divide the stock price amongst all of the investors. You would only have to come up with $13,000 a piece in an investment club of 10 people. That’s still a large sum but much more manageable.

You can invest in mutual funds with higher minimums and get access to bond funds that require larger minimum investment amounts.

You Can All Learn About Stock Investing Together

One of the most enjoyable experiences that you can have an investing club is watching other investors increase their investing knowledge as the club grows. I always like to have the investing clubs that I join read a book together. This is a way of bringing beginners investing on the same page as those that have been investing for awhile. In every meeting, we will discuss a few chapters of the book and apply that knowledge to our investment selections. This helps each investor form a fundamental understanding of the investing process.

You Will Learn Something New

The great thing about investment clubs is that you can learn some investing knowledge that you can apply to your own personal portfolio. I have always learned something new in every investment club that I have joined. I have often come across different stocks that weren’t even on my radar at the time. One thing that I have learned over my years of investing is that no one person knows everything about stock investing. You may learn a new approach or get a fresh outlook on a security in an investment club. As long as you keep an open mind, you can always learn something.

You Get To Network With Like Minded Individuals

Don’t discount the socialization aspect of investment clubs. There are a lot of personal conversations that take place before and after investment club meetings (sometimes during!). These conversations are great for catching up and networking with other people. Investment clubs are great for making connections and building long lasting relationships.

Don’t forget the cheesecake and other food items that are eaten at meetings!

Have you joined any investment clubs? If so, what was your experience?


  1. Mark,
    I guess I have lived my life in la-la land. I don’t know anyone who is in an investment club, so it has never occurred to me to join one. Hmmm. Maybe I should follow your suggestion and start one. Thanks for making the challenge.

  2. I started an investment club many years ago and we practiced the NAIC principles. I learned so much and had a lot of fun. I highly recommend the experience, for both education and profit!

  3. A buddy of mine and I tried to start one, and it fizzled right out of the gate because we had different investment objectives. Combine that with FINRA regs for both of us it just wasn’t worth the headache.

    • I am assuming that you were the more aggressive party (growth stocks).

      • Actually No.

        I thought it would be cool to create an investment club that provided an income stream in a couple years (Boring Blue Chip Dividend Payers). When the club didn’t work out is when I started my small perpetual income machine (buying slightly undervalued dividend aristocrats).

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