Group has portfolio worth $750,000 in 4 decades of contributions

By Charlie Mathews
Gannett Wisconsin Newspapers

MISHICOT — Combine patience and persistence, and the Capital Gains Investment Club, with members throwing in a minimum of 10 bucks a month, has a portfolio worth some $750,000.

Charter members Jack Spevacek, Sandy Wolfmeyer and Mary Scheuer also may have benefited from a little luck in making wise stock picks over the past 40 years.

"I knew absolutely nothing about stocks when Jack and Sandy came to me," Scheuer recalled of a conversation in 1967. "I talked it over with my husband and we decided to try it out. Initially, raising our kids, $10 a month was all I could afford."

"We've seen a number of bull and bear markets over the years," said Spevacek, of the club founded on April 17, 1967. The most common link has been employment in the Mishicot School District.

About eight years after the club's start members had invested $20,641, including re-invested dividends, and the value of their portfolio was $15,265 for a net loss of $5,385.

The trio did not stop investing. Perhaps, they were heeding advice uttered by John Quincy Adams, America's sixth U.S. President from 1825-1829. "Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish," was his counsel.

The club's portfolio has registered some $550,000 in gains. During the past four decades, an additional $189,307 has been paid to members no longer in the club.

Club's rise mirrors Dow Jones Industrial Average

Spevacek said the club doesn't invest in bonds or treasury notes but focuses on common stocks.

"There is a lot more risk ... but the return over the years has always been the greatest in common stocks, typically a little better than 10 percent per year," said the former Speech and English teacher.

The Dow Jones Industrial Average on Sept. 10, 1975 was 817.66. It is now around 13,000.

Scheuer and other members take turns researching stocks and sharing their findings, often culled from the investment research publication "Value Line."

The club, limited by charter to 15, meets at members' residences on a rotating basis seven times a year, with two additional meetings, one in summer and one in January, where spouses or significant others are invited.

"We don't always accept what our other members recommend," Scheuer said. "We might reinvest in something we believe is doing well."

State stocks must perform

Of its current 15 holdings, several are from Wisconsin including Johnson Controls, Associated Bank, and The Manitowoc Company.

"We do have a lot of stock in Wisconsin companies," Wolfmeyer said. "We're more familiar with them."

That doesn't mean companies in the Badger State don't get scrutinized. Their stock in The Manitowoc Company was sold twice during the club's history. They bought back in to "MTW" last September.

In addition to Johnson Controls and Associated Bank, other securities they've held for more than a decade include General Electric, PepsiCo, Donaldson Co., and Abbott Labs.

Wolfmeyer said he continues to favor Johnson Controls, especially as it has diversified to the automotive sector. Scheuer likes Medtronics and its entry into the market for technology related to diabetes, a disease with escalating numbers of patients.

"It is an enjoyable challenge, trying to find that stock that will be a strong performer long-term," Spevacek said.

"A primary purpose of the club is to learn about investing, and we'd be happy to help others who my want to start a club," he said.

Spevacek can be reached at (920) 684-6779.