What can clubs invest in?

Based on BetterInvesting’s educational materials and methodology, investment clubs typically focus on investing in publicly traded stocks. Clubs use tools like the Stock Selection Guide (SSG) to analyze and select quality growth companies for long-term investment.  Most clubs pool their funds to purchase shares of companies listed on major stock exchanges. The goal is to build a diversified portfolio of stocks, often reinvesting dividends and earnings to take advantage of compounding returns.  Some clubs may also consider other types of investments, such as mutual funds or exchange-traded funds (ETFs), but the primary emphasis in BetterInvesting clubs is on individual stocks.  If your club is considering alternative investments (such as bonds, real estate, or private companies), it’s important to review your club’s partnership agreement and consult with a qualified professional to ensure compliance with legal and tax requirements.  For more details on club operations and investment options, you can refer to the Investment Club Operations Handbook available to BetterInvesting members.

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