Investing through Investment Clubs Mahogany Money Machine Investment

Investing through Investment Clubs Mahogany Money Machine Investment Club

What is an Investment Club? l. A group of individuals interested in learning how to invest in companies, make money and have fun!

Why Invest Now? l Know money before you get it l Learn how companies & economy work l Head start gives big returns!

Head Start Gives Big Returns! Assumes: $1000 per year 8. 5% return

Clubs Invest In. . . Stocks (fraction of ownership in a corporation) l Bonds (debt issued by companies or governments) l Mutual Funds (collection of stocks and/or bonds, managed by professionals) l Real Estate (residential, commercial) l Total Return on Investments (1926 -1994) Common Stock Total Return 10. 2% High Grade Corporate Bonds 5. 4% Treasury Bills 3. 7% Inflation Rate 3. 1% Source: “Starting and Operating a Profitable Investment Club”, p. 4, by T. O’Hara, K. S. Janke, and K. Janke

Mahogany Money Machine (m 3) Investment Club l Conceptualized and organized in 1999 after BGESS Financial Seminar by Al Crawford l General partnership since January 2000 l Over $15, 000 in assets with 7 stocks l $30/month contribution l Belong to National Association of Investors Corporation (NAIC)

Mahogany Money Machine (m 3) Investment Club Mission Statement l The Mahogany Money Machine (m 3) is a stock investment club organized to promote investment education and profit through the shared research and study of companies by its members.

m 3 Investment Objectives/ NAIC Goals l Education – Stock Search – Stock Analysis l Profit – Growth (growth companies: 14. 5% per year) – Buy and Hold (reduce commission costs and taxes) – Diversification (size and industry) – Regular Investing (dollar cost averaging) – Earnings Reinvestment (compounded interest)

m 3 Investing Process l Stock search method (entire market or industry) – Narrowing 10, 000 to 5 stocks l Individual stock analysis – Stock Selection Guide l Additional research – Value Line, Standard & Poor's – Annual Report (or 10 K) l Presentation, discussion and vote

Is An Investment Club Right For Me? l Responsibilities – Regular Meetings – Monthly Tasks – Monthly Contribution l Benefits – Less Cash to Start – Diversify Quicker Than If Alone – Study Group for Motivation

Contact Us l If you have questions or want to give us feedback: Gregory Lawrence, President: gregorylawrence@gmail. com l Kenya Wheeler, Treasurer: kenyaw@gmail. com l

Stock Selection Guide (SSG): An Analysis Worksheet l Company Strength (sales and earnings growth) l Management l P/E Strength (profitability) ratios (under/overvalued? ) l Upside l Buy, vs. Downside Potential Hold and Sell Ranges

Steps Toward Investing l Pay down your credit cards l Emergency l Participate l Start/Join savings in retirement plans an Investment Club!!