Traditionally, investment clubs were used as a way to learn about the seemingly complex and complicated world of investing.  Though the internet and other educational resources have grown to fill this role, you may still find considerable value in joining an investment club.

Investment clubs are groups that meet regularly to discuss investment opportunities.  Members contribute money to the club so that investments can be made.  At each meeting, members may report on a company, review an investment book, host a guest speaker, or simply discuss different strategies.  In the beginning, basic investment concepts may be covered as well.  Particularly in the early stages, many investment clubs focus on member education.  For more information on investment clubs and general investing events in your area, visit the National Association of Investors Corp. (NAIC).

Investment clubs do much more than simply improve your financial literacy.  They allow you to bounce ideas off of other investors, pool your money to reduce the impact of commissions, research more companies than you could on your own, and bring together investors who have found success in many different niche markets.  As with any club, investment clubs also provide a social outlet to meet new people and build friendships.

Depending on your investment knowledge, interest of friends, and availability or clubs seeking new members in your area, you may choose to join an existing club or start a new one of your own.  A new club offers maximum flexibility while an existing one may have the structure and resources it would take years to generate on your own.

If you want some of the benefits of an investment club without as many formalities or putting any real money at risk, you could even form a club that doesn’t make actual investments.  Without actual money in the game, the club might not be taken as seriously and you may have deep regrets when your hard work is not accompanied by actual monetary gains, but if your main goal is education, an investment club with a virtual portfolio could be a nice place to start.

Have you ever belonged to an investment club?