|
The Importance of a Mission Statement
Why is a mission statement
so important for your investment club? If you are an experienced investment
clubber, you know the answer to this. If not, here are a few good reasons.
When you get your initial members
together, it is important to have the same investing goals for the club.
Some of your initial members may want to jump in and out of stocks to
make a fast buck. This is contrary to what an investment club should
be. Successful investment clubs buy and hold stocks for the long term.
This is why our club mission statement clearly states that we must perform
a thorough stock study and gain approval of a majority of partners.
By performing a stock study, or an analysis of each company we look
at, we prevent someone from coming in and wanting the club to purchase
a stock on a hot tip. Without a thorough stock study, there should be
no vote on whether to purchase the stock or not.
Also, it is important that
the club members form and agree on a Club Mission Statement. If your
club members agree on a Club Mission Statement from the outset, it will
save a lot of club conflict in the future. Make sure you put it down
on paper and vote it in as a club. You won't regret it.
Below is
a sample Investment Club Mission Statement:
- Our club is committed
to educating its members about investing in the stock market and investing
for the long term.
- Our investment objective
is to double our money every five years. To do so, our club must average
a 14.90 % compounded annual growth rate.
- In order for a company
to be considered for purchase by the club, a (Name of Club) Investment
Club partner must show:
- A completed stock
study for the company, as agreed upon by members
- Majority approval
by the partners to purchase said stock
If your club has a mission
statement like the one above, things should go much smoother down the
road.
|
