Starting an Investment Club

So we have news.

I’ve been investing in stocks and options over the years, since 2011 actually. I’ve learned a lot in that time, and even more so ever since I began to write about business and investing for the benefit of readers. There is a lot of truth to the statement that if you want to get better at something, teach it. Over time, I have gotten into commodities and now real estate and will continue to learn and improve as an investor over time.

Of course I have not stayed alone in this. I’ve met a group of like minded individuals who have become friends and an informal brain trust. We discuss the investment landscape, stock ideas, the challenge of sticking to a disciplined investment plan and more. And in that time as well, I’ve had many people reach out to me who want to learn how to invest, buy stocks or participate in IPOs, develop a habit of savings and investment or just discuss with like minded people. I’ve had people hit me up from Nigeria asking about how they could buy shares on NASDAQ or NYSE, because Nigerian stock exchange was not cutting it, because they wanted to insulate themselves from naira depreciation or because their favorite companies were not listed in Lagos.

As these two currents kept colliding, I got tired of telling most of them who are in Ghana, Nigeria, Kenya, UAE or Malaysia that unless they had a brokerage connect in the US, they couldn’t get the access they needed. I also got tired of telling people: invest in small amounts every month and let it accumulate over time. I realized that there had to be a way to not just tell them about it, but help them achieve what they wanted and actually do what they needed to do with their investments. Why should your access to investments be limited by the amount of money you have or the country you’re in, in 2018? The internet has made it possible to connect to people from anywhere and we need to translate that into our investing.

So my friends and I talked it over, and we decided to start an investment club. Members contribute a fixed amount every month, from $55 up. The money is placed in a business account owned by the club and every month the club hosts a conference call, discusses the investments to make, and buy into the stocks. As a group. You want to buy Amazon for it’s incredible performance and growth, but you don’t have $1,500 to put into one stock? No problem. Let all ten of us split that amount. We all get the performance of Amazon without having to fork over that amount individually. You want to buy into Spotify’s IPO but you’re all the way in Liberia? No problem. The club buys into it, with your contribution. Each member’s contributions are tracked, and every month our performance is discussed. You can join in from ANYWHERE. All you need is to understand the rules, make your contribution on time, and join in on the call to share your ideas. If you are a PhD in biology, you’re in a better position to evaluate that biotech company than I am. So you do it and we invest together. Or you’re that engineer who understands how an innovation can transform a company over night? You tell us about it, and we invest. We all win because everyone chips in.

And if you want to walk away at any time? We liquidate your share and cash you out.

We are opening up the club to anyone who wants to join in. The monthly contribution is $55 (20,000 naira, 245 Ghanaian cedis, 5,560 Kenyan shillings, you get the idea). The catch is, there is a cap. Only 100 people. So it literally is first come, first serve.

Also, this is not a profit making venture for me or any other member. We will all be contributing alongside everyone else and the contributions will go into our holdings/portfolio. So the $450 set up costs for all of this (setting up a company, bank account, legal documents etc) will not come from me. We’ll have to raise it all together, $5 each. Potentially, we might need to spend money to hire someone to handle administrative duties. That will be the only expense the club will pay for. And if enough people join in, we might build an app for it. We will all know that when the time comes.

If you’re interested in joining, send an email to rumexxcapital at gmail dot com, and put INVESTMENT CLUB in your caption. Any email that does not have that as the subject will be auto deleted.

The first 100 people to reach out will receive the details of how we will proceed.

The reason I named this blog “Rebel Money” is that the only reason I want to make money is for the freedom to do the things I really want to do, not the things I have to for social approval or paycheck reasons. That is a goal I want for all of us. Investing is a team sport, and it’s time we all got in on it.

I’ll be expecting your email.

Yours,

E.

 

Advertisements

What do you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s