Why Should New Investors try BetterInvesting?
BetterInvesting™ provides a robust investor education, structure and community for new investors. These three pillars can help new investors grow their wealth in the stock market.
Better Investing Works
Gloria Mankonen is a Director of BetterInvesting's Philadelphia area chapter. She took some time to discuss BetterInvesting with me on a conference call.
Gloria joined BetterInvesting in 2001. Back then, her all woman's club had just $15k in assets. For two years, her investment club floundered. Finally, after two years of little progress, Gloria needed to change up the club.
Back then, each member did one report per member. It was boring, and typically the reports were just a bunch of random print offs.
A New Philosophy
Gloria noted that the philosophy of BetterInvesting is to double the portfolio's value* every 5 years. To achieve this, you needed a mix of high quality stocks:
Gloria requested that the club conduct a portfolio review. They realized that they were 100% in blue chip stocks and not diversified by sector. They were in only tech stocks and oil stocks.
The club eliminated all their tech stocks except for Apple. Gloria highly recommended Apple because she used their products in her everyday life. It was an investment in her lifestyle.
This process took two years, and the club lost members during that time.
Stock Selection Guide
The group started to fill out their stock selection guides (SSG). This replaced the monotonous task of bringing online print outs. Having the SSGs filled out improved stock quality and club performance.
The group kept any individual holding to less than 20%. This allowed them to stay diversified. One issue was Apple, which kept doubling in value. They kept selling Apple, even though it kept reaching new all-time highs. As of today, the club has 2,004 shares of Apple, even though they would have had 18,000 shares if they had held.
Gloria's husband quipped that she shouldn't have sold. But that's a "woulda, coulda, shoulda" attitude. By diversifying their holdings, they protected themselves from the high volatility of Apple.
But even now as the market is falling, Gloria notes to not panic. Believe in the analysis you've done within the SSG framework and you'll make it through any turmoil.
A Community Investing Together
Gloria's club is now worth over $1 million thanks to BetterInvesting's process and the strength of her investment community. Anyone can invest in a BetterInvesting club and achieve this result. The minimum investment can be as low as $10 and their is likely a BetterInvesting chapter near you.
Gloria and other volunteers helped set up a youth model Investment Club in Philadelphia. The age of these aspiring investors range from 10 to 18 years old and are primarily from African American communities.
BetterInvesting is more than just investment education. Volunteers like Gloria look to not only build member wealth, but also member communities. So if you're new to investing, check out your own local BetterInvesting chapter.
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*Portfolio value was used for simplification. Technically, BetterInvesting wants to double portfolio net asset value (NAV), every five years