What is BetterInvesting™?
BetterInvesting is a non-profit organization that helps people create investment clubs, promotes financial education, and provides powerful online stock analysis tools. Also known as the National Association of Investors (NAIC), there are BetterInvesting chapters all across the country and if you want to learn how to invest for the long term, they are a great organization to join.
But wait! What’s an Investment Club?
Great question. An investment club is a group that pools their money to buy and sell investments together. These investments are typically stocks. The group votes on which stocks to trade and each portfolio decision is (and under law must be) jointly managed by all members of the club. By having a larger pool, an investment club’s flat-fee commissions are much less as a percentage of their overall assets. Also, with multiple members incentivized to profit on the joint holdings, you have many committed members working together to invest in winning stocks while learning about investing together.
Now that you know what BetterInvesting is, here are 5 reasons you should joining a Chapter of BetterInvesting.
5. Experienced Investors
New to Investing? You know what helps? Associating with experienced investors.
Typically, I found that BetterInvesting clubs have more experienced investors. They have a wealth of knowledge, have made investing mistakes, and have learned from those errors. The culture at a BetterInvesting club is to learn from these mistakes so that the club can profit, and this is tremendously helpful for new investors. Also, some club members have specialized in certain sectors, strategies, or even particular assets, developing a strong expertise. Club members want to share this knowledge and help guide the club and new members.
BetterInvesting Clubs are very encouraging. They want to share in your success and are welcoming to new members. Clubs encourage learning and provide a lot of learning material. They immediately like to share responsibilities with new members like creating new Stock Selection Guides and presenting new investment ideas. I don’t think I can stress enough how positive an experience you can have at a BetterInvesting Club so read these stories here to learn more.
3. Stock Selection Guides
The stock selection guide (SSG) helps an investor analyze an investment objectively. This is a proprietary tool of BetterInvesting and it’s great for investors to help structure the process of analyzing a stock’s financials to determine its value. I like the SSG because they take into consideration your expectations of company growth and are a useful tool without being too rigid. I love this focus on growth! The SSG doesn’t just look for defensive positions, we can take the offensive to find a company with future opportunity. You can learn more about stock selection guides here.
2. Responsibility Made Easy that Could Help Your Career!
BetterInvesting makes accounting easy for investment clubs. The BetterInvesting accounting tools, myICLUB.com, make it easy to manage the club’s money, and because members are encouraged to be Treasurer at least once, you will get a chance to manage the money of others. I’ve noticed in my previous careers that people who manage money at their jobs typically (and anecdotally) make 20% to 40% more than their counterparts who don’t manage money but otherwise have the same role. Having the discipline to manage other peoples’ money is a highly sought-after credential in your career and it’s great to get this kind of experience at an Investment Club.
1. Discover New Investments
I cannot even begin to describe the number of winning stocks I’ve discovered at BetterInvesting Clubs. Many ideas I’ve received became 2 baggers (200% return, imagine investing $1000 and getting back $3000). When you have multiple fellow investors on your team scouring the markets for great stock picks, you start to find all-star stocks. To go through all the stocks I’ve found thanks to BetterInvesting would take another article, but suffice to say I’ve done very well in Semi-Conductors, Renewable Energy, and Aviation stocks thanks to BetterInvesting chapters. Not every stock will be a winner, but thanks to SSGs each stock pick is backed by a logical argument behind why the stock should be bought or sold. Check out some ideas from BetterInvesting here to see for yourself.
Did I Convince You?
I want all of us to start building wealth. A lot of investing tools have a lot of hype but no substance. My personal opinion is that if you’re a new investor, BetterInvesting has the tools and culture to start you on your wealth building journey. Questions, answers, objections? Feel free to leave a comment.