August 21, 1998
Back to School, Fool

Learning About Investing:
Investment Clubs

Q:I really want to learn about investing while I'm in college, but the only investing class listed in the course choices is offered at 9:30 in the morning. Obviously, there's no way that I can be expected to actually attend that. Should I pressure the administration to schedule a class at a realistic hour? Should I take the course figuring that I can blow off all the classes and learn the whole thing from my girlfriend's notes the night before the exam? Or should I just put off learning about investing until I get into the real world?

A:For late risers and others who feel they don't need a formal class to start learning about investing, an excellent way to begin learning without signing up for Professor Predawn's class is to start your own investment club.

Investment clubs have been around for decades, and tens of thousands exist in America today. They've been growing in popularity in recent years, partly due to the best-selling books by the Beardstown Ladies.

Members of investment clubs, often groups of friends or co-workers, typically meet once a month to discuss companies and make decisions about which stocks to buy and sell. At meetings they each contribute a small sum of money that is deposited into a joint account. Members take turns researching and reporting on promising companies in which they might invest or companies in which the club is already invested.

Investment clubs are particularly easy for college students to organize. A typical membership number of 12 to 20 people can be found just by opening up your door and screaming into the hall, "Pizza's on the way."

Although funds for just about everyone are a lot tighter while in college than later in life, with 20 people contributing even $10 a month, that's enough to get started. Really.

Mostly though, like the rest of life at college, investment clubs are a fun way to learn. And, also like college (and the rest of life) free food plays a big role.

For more information on investing clubs, check out the Fool's Investment Club area.