Links

  • Club Documents


  • Investment Education


  • Research Links


  • Club Members Only


  • HOME



    •



    Seriously Hip Investment Club


    Welcome to the Seriously Hip Investment Club web site! We established the Club to help members learn to become successful, lifetime investors. The primary objective of the Club was to provide a program of sound investment information, education and support.

    Purpose: To help members learn how to invest profitably in the stock market.

    Benefits: Members of this seriously hip investment club learned:

  • How to analyze industries
  • How to analyze a company's stock performance
  • How to determine when to buy and sell stocks
  • Investment research methods
  • Investment terminology
  • Fundamental principles of asset allocation and portfolio management.

    • Background Information: Based in Houston, Texas, we officially formed our club with 7 members in February 2000 and disbanded the club in May 2003. The club normally invested $500-$700 in common stocks each month. Our final cost basis was $16,500.

    One high point in our club's existence was being featured in the January 2002 issue of Better Investing magazine.

    Investment Results: So, how well did the Seriously Hip Investment Club's portfolio perform? The club made its first purchase of stock on May 25, 2000. The NASDAQ and S&P 500 indexes closed that day at 3205 and 1381, respectively. Three years later, on May 23, 2003, the club liquidated the portfolio. During those three years, the NASDAQ index dropped 53% to 1510 and the S&P 500 index dropped 32% to 933. After three years, our portfolio was worth $12,911. Identical investments in the NASDAQ and S&P 500 indexed would have been worth $11,724 and $13,104, respectively.

    At its peak, the value of the SHIC portfolio exceeded the comparable NASDAQ portfolio by 94.9% and exceeded the comparable S&P 500 portfolio by 47.3%. At its low, the SHIC portfolio trailed the comparable NASDAQ and S&P 500 portfolios by 14.8% and 9.6%, respectively. Between May 2000 and May 2003, the value of the SHIC portfolio exceed the NASDAQ portfolio 92% of the weeks, and exceeded the S&P 500 portfolio 82% of the weeks.

    Below are links to graphs that compare our portfolio performance to that of the NASDAQ and S&P 500 indexes.

  • Lifetime Portfolio Value Comparison
  • 2002
  • 2001
  • 2000

    • First 12 Months Results: On May 25, 2001, one year after our first stock purchase, we had a portfolio of 12 stocks whose value had gained 32%. During the same period, comparable investments in the S&P 500 and NASDAQ would have lost 5.1% and 21.8%, respectively.

    Second 12 Months Results: On May 24, 2002, two years after our first stock purchase, we had a portfolio of 16 stocks whose value had gained 13.7% since inception. During the same period, comparable investments in the S&P 500 and NASDAQ would have lost 10.3% and 24.9%, respectively.

    Third 12 Months Results: On May 23, 2003, we had a portfolio of 11 stocks. During the three period starting in May 2000, the SHIC portfolio lost 21.76%, while comparable investments in the S&P 500 and NASDAQ would have lost 20.6% and 28.9%, respectively.

    Four Investment Principles: We fully support the four principles for investing promoted by the National Association of Investors Corporation (NAIC):

    1. Invest regular sums of money once a month in common stock. This helps you obtain a lower average cost on your investments.
    2. Reinvest all earnings, dividends and capital gains. Your money grows faster if earnings are reinvested. This way, compounding of your money is at work for you.
    3. Buy growth stocks -- companies whose sales and earnings are increasing at a rate faster than the industry in general. They should have good prospects for continued growth, or in other words, they should be stronger, larger companies five years from now.
    4. Invest in different industries. Diversification helps spread both risk and opportunity.

    NAIC Membership Information:

  • Individual Membership cost and benefits.
  • Investment Club Membership cost and benefits.



    • Club Documents . Investment Education . Research Links . Club Members Only . HOME

    Maintained by Tim Smith at [email protected].


    This site was created with the assistance of S. & S. Barrows.
    Free JavaScripts provided by The JavaScript Source

    Hosted by www.Geocities.ws

    1