Long before the saying, “Think Outside the Box,” became popular, long-term investor Susan Maciolek was doing just that. “It was way back when the Internet was new to me,” recalls Susan, one of the founding members of the 14-year-old, all-women Bower City Investors club of Janesville, Wisc. A long-time BetterInvesting member and a Director of the South Central Wisconsin BI Chapter, Susan “met” fellow investor Lynn Ostrem online through a mutual friend. “Lynn had questions about BI’s Pert A form, and we were able to conduct an online class via emails,” Susan says.
That was just the beginning. “It wasn’t long after that that (BI writer) Amy Crane asked the question: What makes a good club?” she recalls. “That really got me thinking about how well our club runs and how we might share some of our ideas with other clubs.”
Sharing the Wealth…of Knowledge
When you’re on to something – like investment club tips that work – there’s no sense in keeping it a secret. When another club found itself in dire straits, Susan invited its members to visit and observe the Bower City Investors’ operations. Her idea was an instant success and Susan realized that reaching out to other clubs was just as important a calling as mentoring fellow club members. “These clubs just need a little direction to get back on track,” she says.
Over the years, members from many different clubs have attended regular meetings of the Bower City Investors. “Usually, two or three members will come as representatives of their own investment club,” Susan explains. “They observe our club’s dynamics and note a variety of items, from the way we run our meetings to our agenda and the organization of our monthly reports. Then, they bring these ideas back to their own club.”
As part of her duties as a Chapter Director, Susan travels to other investment clubs to conduct mini-classes on everything from the beginning and advanced Stock Selection Guide to adding judgment, when to sell, return on equity, and balance sheets. She also lends a hand when an established club gets “stuck.” Susan, who also served as the Chapter’s Director of Education from 1996-2007, identified the following common problems among investment clubs, along with the mentorship solutions she and her club members have offered:
- Meetings That Have No Formal Structure
“This is one of the most common problems among the investment clubs that I visit – both new and established,” Susan says. “They become disorganized because they don’t have a plan – there’s no agenda, no committees. I’ve walked into meetings where you can’t even tell who the president is, because no one is leading the discussion – everyone is talking at once.
The solution? “Investment clubs need to be run like a business,” Susan says. And that means a formal agenda that the club sticks to at each and every meeting. Some clubs even take it a step further – by allotting a specific amount of time not just for the club’s meeting, but for each item on the agenda.
- Meetings That Are Too Social
“Some clubs operate as if they’re a social club with a few stocks thrown in, rather than the other way around,” Susan says. “But even if you are friends, when the meeting is called to order, it’s time to get down to business. Otherwise, your club’s investing focus is really going to suffer.”
Susan knows it’s easier said than done, which is why her club begins its meetings with what they call a ‘Sunshine Moment.’ “At the beginning of our meetings, we make announcements, introduce any guests, then allow five minutes – the Sunshine Moment – for members to share anything non-club related before the business portion of the meeting gets underway,” she says. “This helps to keep the meeting on track, as members have already had a brief opportunity to socialize and catch up.”
- Lack of Delegation
One of the most common problems that investment clubs share is a tendency over time for a few members to end up doing the vast majority of the club’s work. That leads to overload – and often, feelings of resentment.
The solution is quite simple – everyone takes a turn. “Everyone in the club needs to have a job, no matter how small that job is,” Susan says. To make it official, Susan’s club included this requirement as part of its by-laws. “Every member must serve as an officer at some point,” she says. “That doesn’t necessarily mean that everyone has to take a turn as president or as treasurer. Some people aren’t comfortable standing up in front of a group of people and others would lose their mind at the thought of taking on the job of treasurer. But there are a lot of positions in an investment club – such as Education Committee Chair or Social Chair. There’s definitely a job for everyone.”
In addition, the Bower City Investors by-laws also require all members to complete a class on the Stock Selection Guide, own or have access to a computer, and purchase the Toolkit software in order to become a member of the club. After all, Susan notes, it’s difficult to do your job if you don’t have the proper equipment.
- Lack of Continuing Education
When the twenty members of the Bower City Investors first organized in 1994, only two members of the group had previous experience as members of an investment club. “The other 18 of us knew there was a stock market – but that was all we knew,” Susan says.
Education, Susan is quick to point out to other clubs, is not exclusive to new clubs or new club members. “We have had an educational sidebar at every investment club meeting since the club’s inception – and we still do.”
Financial education is a much a part of a club’s lifeline as is its monthly dues and portfolio. Brand-new clubs and club members can start out slowly with the basics, as Susan’s club did. “At our first meeting, we discussed a list of financial terms,” she says. “Other educational segments have included everything from how to read the Wall Street Journal to going over the Stock Selection Guide step by step – even having a member give a synopsis of an article from BetterInvesting magazine.”
For Here and To Go…
Whether Susan makes a club visit or her club invites guests to observe a regular monthly meeting, investors seldom go home empty-handed. “We usually send them back to their clubs with copies of the tools our club uses – from our agenda to our annual report forms, our education calendar and our stock guidelines. That way, they have a prototype – something to go by – and they can use it as-is or customize it in a way that works better for their club.”
As for her relationship with Lynn Ostrem that got all of this started? “We’ve stayed in contact with each other, but we’ve still never met. I do hope we have the opportunity to meet face-to-face one day,” Susan says.
|