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Show TVacIeljr FamilyDecember 6 -- i V ' M floor of the New York Stock Exchange is not so remote as :7 people. f-. i mm m j ' r Ti nil irllKj w M m - mm small Massachusetts The Twenty-fiv- e Club of Oakland, Calif., was 1955. formed in Its profit tops 50 percent Not everyone, it must be noted, enters the Wall Street sweepstakes with complete dedication to solidprinciples. One jovial squad of bachelors, as their-- first step toward financial independence, chose to buy a race horse. When this noble steed put them in the red, they switched to another growth proposition, a young lady of some talent who aspired to movie queendom, and sent her to Holly woocb Unfortunatelytsheran even more slowly than their thoroughbred, and they were soon reduced to the ignominy of inventing m .Miw-.,are now in the black, One Detroit club called Midas failed for a strange reason: it was too smart. Its membership included such financial eggheads as a business professor, the comptroller of a department store, and a clutch of cannv businessmen. So thev studied stocks rts, and curves.' Finally, they decided to invest only in growth stocks, but they were so intellectual about it that they argued for hours about the definition of "growth." So it went at every meeting. The result? "We got out of Parke Davis before it started to move," says George Morospn, a former member. "We sold Wrigley before it merged with ACF Industries and increased its value. We bought and sold like crazy, losing money on brokerage fees; while at the same time -- gregation was tcKrJtofrebuild, so a group of its members dedaloranmBute their own capi- 131 lo a cooperauve eiiort. Paying only $10 each per month, they began to meet regularly to study the stock market and to invest in stocks. Any day now, they are confident, their church will have its new steeple, bought with dividends and profits on their invest-ment- s, and they will have their money back. For several years now, people have been getting together to make money via investment clubs. "tstimdr investment clubs, wtimaCetrariiOp is that most of them are making money. This is no lucky accident. A part of almost every club program is an earnest study of corporations in which invest- ment is proposed, a course in the fundamentals of business economics, and the help of a skilled I cieritifically-withgraphsha- Probably the outstanding success is the Mutual Investment Club of Detroit In 1939, when its members were students at Western High School, they formed a club, got a financial advisor, and embarked, on a program. Since then, they have paid in about $35,000. If they had chosen to sell out at the end of 1958, their assets would have totaled $123,000. Younger clubs have done well on many famous stocks. The United Investment Club of South Bend, Ind., organized in J954; s composed of housewives and mothers-Thei- r best buy has been a drug manufacturer, Schering Corporation, which they bought at $27 per share. Their profit amounts to several hundred percent Red Arrow Associates of Rice Lake, Wis., is three years old and has 15 members who have contributed $4,200 for stocks that now are worth-mor- than ...,,'' - heavy wind stripped a A church of its steeple two years ago. The con- financial advisor. - anqther-clu-bf money-han- d iner over fistr -- One-g- irl .'$64,000 Question,- - like Avould We the the show, and get her club to buy Revlon stock. We felt this wasn't scientific and waited, and Revlon went up." Midas folded and Mr. Morosbn got back $95 of it, but the girls kept investing e the $120 he put into and winning. ' Luck plays a part in such profits, but a much $6,000. STOCK EXCHANGE ENDORSES CLUBS "Investment clubs are effectively putting ownership within the reach of many, and' they are doing it in a way that is practical and educational. By their size, soundness,, and, success, these clubs have earned a significant place in our arsenal of investment teciniques particularly for the apprentice investor.' -- Keith Tunsfon, Presxdmew York Stock Exchange Family Weekly, December ff. 1959 ) V TIM r Investment clubs have sparked an active interest in Wall St. The bustle of activity on the it once seemed to man Vt-- '.Ml ." Mf n v ma' lit ii i larger role is played by good judgment and training. This training comes to most clubs from the National Association of Investment Clubs, which was formed in 1951. Its advice: 1. Invest every month without fail. 2. Reinvest all dividends.. 3. Buy growth companies. George A. Nicholson, Jr., chairman of the NAIC Advisory Board and head of the investment-counselin- g department at Smith, Hague; and Co., De- troit says: "We are confident that most members can accumulate $10,000 or more in securities Fii,..ai..--...tiw.i- ui.ii.r .thi!ftugklM. useful in providing stability foMhe fami educa- tional opportunities, and a happier retirement Three years ago, the New York Stock Exchange explored the movement and discovered: Investment clubs exists ineverjrtatewim Michigan, New York, and Ohio leading. Stocks owned by clubs have a value of more than $50 million. The average club has 15 members who invest $10 per month. Church and religious groups have formed almost 100 clubs; educational institutions, more than 200; fraternal orders and social groups, 1,166; community and neighborhood groups, 1,661. le clubs keep better purchase records. clubs are better at buying good All-ma- All-fem- ale JlgcksjjlcD 'Men. am, gamblers out jto.make a quick buck, says New' York investment counselor Spencer Grean. "But the women want that old washing machine." Some Wall Streeters are afraid that a further decline in the market may stampede thousands of club members into dumping their stocks overnight "Not at all probable," says Thomas O'Hara, chairman of the trustees of the NAIC. "We've lived through several slumps, and we find that members simply turn to a study of what companies in what industries are most likely to do best in a recession." A Chicago broker complained, 4These clubs invest only a couple hundred bucks a month, but they're constantly calling for reports on companies, advice, guest speakers, and other services. The commission isn't worth it" On4he-theiwhand,a- o new customers, said, "To a fellow like me, this is I |