Early in 2013 I, along with 8 other buddies, created an Investment Club.  The idea was simple we would each put $500 to start it up and then an ongoing $100/month contribution.  As with most things life it isn’t the idea that is difficult, it is the execution.  One month in, I had very little hope for the survival of the investment club.  Shockingly, the investment club itself turned around and by 7 months in we really hit our stride.

How the Investment Club Did in 2013

Mainly because I knew no one else would do it I took it upon myself to calculate our returns.  Each member put in their initial $500 as well as their subsequent $900 monthly contributions.  It cost us $1,642 to get the LLC up and running (now that I have done these for clients this number was a rip off, but too late now).  We also had to subtract $400 which was January’s contribution for some leaving us with a year end out of:

Investment Club Results

Investment Clubs 2013 Actual Returns:

  • Investment Gain for 2013 – 31.47%
  • Total Gain (with non-recurring start up costs) – 13.78%
  • S&P From 2/19/2013 to 12/31/2013 – 21.63% (when money was deposited)
  • S&P From 2/19/2013 to 12/31/2013 – 18.24%% (our first trade)
  • We only closed out on 3 stocks (realizing the gains) – 119.57% ($367.49), 106.17% ($213.88) and 20.16% ($51.52)
  • Received $39.53 in dividends, but these weren’t reinvested in 2013 (will be in 2014 and beyond).

The Future of the Investment Club

Last night we had a 3 hour online meeting using a simple chat service.  In it we confirmed/changed some of our processes, discussed tax ramifications and decided what to do with each of our current holdings.  The level of participation from nearly every member was a welcomed surprise.  Besides my efforts to move along the conversation not one person dominated the conversation or votes which is just fantastic.

Unlike at the beginning I am excited to see how well the investment club does in 2014!