Investment Goals and Guidelines

Goals

•	Invest in companies with at least a 5 year history of consistent earnings, revenue and growth.
•	Reinvest dividends and the proceeds from stock sales, or other transactions, back into the portfolio.
•	Develop and maintain a portfolio that will grow at an average of at least 15% a year.
•	Develop and maintain a portfolio that is diversified by industry and company size (revenues.) Limit investment in any one sector to 20% of the total portfolio. 

Guidelines

•	The Club’s assets will be invested solely in stock of individual companies and/or in index mutual funds.  While waiting to invest, the Club may keep cash in a money market fund with the Club’s broker.
•	If available at no cost, the Club shall instruct the broker to automatically reinvest dividends in the stock generating the dividends.
•	Once the Club’s assets reach $10,000, no more than 25% shall be invested in any one market sector.  Market sectors shall be defined …
•	The club will not invest in amounts of less than $1,000 at a time.  As soon as is practical after the cash balance reaches $2,000, the Club must select a specific stock in which to invest the funds.
•	The club shall not invest on margin.
•	These guidelines may be waived on individual transactions upon a vote of the Partners.