The 2nd National Investment Club Conference took place on Saturday 15th November 2008 at the World Money Show.
The event was a great success, bringing together clubs from all over the UK and as far a field as the Czech Republic!
Subscription to Investors Chronicle & IC Advantage
Mourad Kara of the Mobius Investment Club was the Master of Ceremonies throughout the day, which started with a presentation from Ian Head of the PIP Investment Club on “Making Profits & Taking Profits”. Ian is a great fan of technical analysis and his talk was packed full of information on strategies, asset allocation and investment techniques. It goes without saying that “Making Profits” is a topic of great interest to many investors!
The second session, entitled “One Year On: Top Tips for Starting and Sustaining an Investment Club” drew upon the experiences of Peter Salenieks' award winning Dynamic Investment Club and Bela Tiwari’s recently established Ab Initio Investment Club. Their presentations addressed the challenge of keeping clubs alive and vibrant and a place for continuous learning, emphasising that "everyone is special and has something different to contribute". The talk was very well received and gave the audience lots of ideas to "try at home".
No meeting of investment clubs would be complete without a nod to the hell that can be investment club accounting. Dave Gaskell of the Rolling Stocks Investment Club managed to amusingly explain the intricacies of the unit valuation system and measuring performance, without requiring the audience to have degrees in maths! Dary McGovern of TimeToTrade followed this with an extremely informative talk about managing investment club accounts, “Tax Doesn’t Have to be Taxing”. That the audience were able not only get through those two sessions without falling asleep but also contribute lots of questions and interaction was no mean feat and certainly a compliment to the speakers!
Chris Rose urged the audience to "use your imagination to find different opportunities" in his “Alternative Investments” presentation. The key message being that Investment Clubs should not necessarily limit themselves to dealing in shares. Indeed, Chris’s club, the Crown Cycling Circle, have spiced up their investment portfolio with properties in Egypt and Bulgaria , fine wine and gold.
Paul Dolman-Darrall of Fairer Shares Investment Club kept the audience entertained with his very informative, energetically presented and intriguingly entitled session “Why We Are All Just Headless Chickens... And How To Profit From That Knowledge”. He provided a fascinating insight into the psychological and neurological processes at play when investing and how they influence your investment decisions.
This year we were delighted to be joined by Nick Louth, who launched his latest book in the Bernards Jones Investing Diaries series, "Dunces with Wolves" at the conference. The author chaired the Investment Club Clinic, opening with a very amusing tale about the recent antics of the “Wizards” Mervyn, Darling and Brown. The speakers were put through their paces, answering a variety of questions from the audience on everything from keeping club members interested to stop loss strategies.
All the speakers did a fantastic job through out the day, impressing everyone with the breadth and depth of their knowledge and the quality of their presentations and delivery. Each is an investment club member who volunteered to take part in the day and we thank them for generously giving up their time to share their experiences and lessons learned over the years.
QUIZ & PRIZE DRAW
Nick Louth presented the awards for the 2008 Quiz & Prize Draw.
The winners are as follows:
1st Prize: Bela Tiwari - Ab Initio Investment Club
Technical Analysis Training Course with Michael Hewson
2nd Prize: Tehzeeb Guna - Phoenix Investment Club
Subscription to timetotrade's Investment Club Accounting Software
1st Prize: Kwame Adjei
Subscription to MarketStars, the stock screening tool from Digital Look
2nd Prize: Peter Salenieks - Dynamic Investment Club
NICK LOUTH PRIZE:
Richard Ford -
Signed copy of Nick Louth's latest book in the Bernard Jones series: "Dunces with Wolves"
"I found the whole program very interesting and already looking forward to next year."
Michael Kelley – ALPS Investment Club
|TO DOWNLOAD COPIES OF THIS YEAR'S PRESENTATIONS, CLICK ON THE PRESENTATION TITLES BELOW: |
Mobius Investment Club
10.00 am – 10.20 am
PIP Investment Club
10.20am - 11.00am
Making Profits and Taking Profits
A look at value investing and the tools needed to make money from unloved stocks. This session will also look at asset classes, profit taking and value investing strategies to limit the downsides, while giving over-market returns.
Ab Initio Investment Club
11.00am - 11.20am
One Year On: Top Tips for Starting an Investment Club
Tips on how to set up a new club: from administration and setting up broker and bank accounts to agreeing aims and goals and investment strategy.
Dynamic Investment Club
11.20am - 11.40am
One Year On: Top Tips for Sustaining an Investment Club
Tips for club members on how to maintain interest and enthusiasm beyond the early days of their club. Hear practical ideas, including a selection of ideas adopted by clubs as a result of attending this conference last year.
Rolling Stocks Investment Club
12.00pm - 12.40pm
Is Equal Share Really Fair?
This session will take you through the basics of club accounting and will teach you how to correctly value your club and measure your investment performance. Ideal for existing club members, as well as anyone interested in starting or joining an Investment Club.
Managing Director timetotrade
12.40pm - 1.20pm
Tax Doesn't Have to be Taxing
Confused about the latest Capital Gains Tax rules? Have you claimed your losses this year to offset them against future gains? Are you taking full advantage of available tax relief? What are the tax implications of corporate actions? What tax returns need to be completed if you are part of an Investment Club or as an individual investor? All of this and more will be explained!
2.40pm - 3.20pm
The Forces That Influence the Global Economy
An analysis of the macroeconomic situation and current market turmoil with a look at investment strategies you can employ in these volatile times.
Crown Cycling Circle Investment Club
3.20pm - 4.00pm
More Wine Sir?
A look at alternative investment vehicles and how they have faired against traditional investments through a difficult 12 months and introducing new opportunities that the market has developed to respond to these challenges.
Fairer Shares Investment Club
4.00pm - 4.40pm
Why We Are All Just Headless Chickens... And How To Profit From That Knowledge
This session will look at why it’s so hard to be different, why rationality controls investment decisions and how you can use this knowledge to pick stocks.
4.40pm - 5.30pm
Investment Club Clinic - Chaired by Nick Louth (Author of the Bernard Jones Diaries for Investors Chronicle)
Q&A Session where our experts will discuss their experiences over the last year: what went wrong, what went right, what we would have done differently with hindsight and what we can learn going forward.
If you would like to be kept informed about future events, please contact us HERE
We look forward to seeing you again soon!
the timetotrade team
INVESTORS FLOCK TO INVESTMENT CLUB DAY
Written by Peter Salenieks
Private investors from all over the United Kingdom and even as far afield as the Czech Republic gathered in London for the 2nd National Investment Club Conference on Saturday 15th November 2008 at the World Money Show. The event was hailed as a great success, with speakers from leading Investment Clubs offering tips on how to profit in uncertain times.
Mourad Kara of the Mobius Investment Club was the Master of Ceremonies throughout the day; which started with a presentation from Ian Head of the PIP Investment Club, on “Making Profits & Taking Profits”. Arguing that “fundamental analysis is less important that technical analysis in a market that is driven by sentiment,” Ian’s talk packed with information on strategies, asset allocation and investment techniques. “This is the time to be brave – but not with all your cash,” he told the audience. Making profits is a topic of great interest to many investors!
The second session, entitled “One Year On: Top Tips for Starting and Sustaining Investment Clubs” saw Peter Salenieks from the multiple-award winning Dynamic Investment Club build upon his talk at the inaugural conference, joined by Bela Tiwari of the newly established Ab Initio Investment Club. Their presentations addressed the challenge of keeping clubs alive and vibrant and a place for continuous learning, emphasising that "everyone is special and has something different to contribute". The talk was very well received and gave the audience lots of ideas to "try at home".
No meeting of investment clubs would be complete without practical advice on mastering the intricacies of investment club accounting. Dave Gaskell of the Rolling Stocks Investment Club explained how why the unit valuation system should be at the heart of fairly distributing the investment club assets. He presented different ways to measure performance, without requiring the audience to have degrees in maths! Dary McGovern of timetotrade followed this with an extremely informative talk about managing investment club accounts called “Tax Doesn’t Have to be Taxing”. Bringing dry subjects to life is a challenge and the level of questions and interaction with the audience showed how well both speakers succeeded.
The keynote speaker was David Stevenson of Investors Chronicle. In an impassioned talk to a packed room, he highlighted five trends that will shape the investment landscape: deflation, inflation, emerging markets, alternative assets and bonds.
Dividends are increasingly at risk and “income investing is going to be hugely difficult,” he argued, adding that volatility will increase as markets deleverage. David highlighted circumstances that could trigger further falls across a range of asset classes, identifying potential buying opportunities as value re-emerges.
Chris Rose urged the audience to "use your imagination to find different opportunities" in his “Alternative Investments” presentation. His key message is that Investment Clubs should not necessarily limit themselves to dealing in shares; instead they ought to “keep an open mind – be willing to consider new ideas”. Indeed, his club, the Crown Cycling Circle Investment Club, have spiced up their investment portfolio with properties in Egypt and Bulgaria, fine wine and gold.
Paul Dolman-Darrall of Fairer Shares Investment Club kept the audience entertained with a very informative and energetic presentation entitled: “Why We Are All Just Headless Chickens … And How To Profit From That Knowledge”. “We crave reward but try to minimise risk,” said Paul before he went on to provide fascinating insights into the psychological and neurological processes at play when people invest and described how they influence investment decisions.
This year the organisers were delighted to be joined by Nick Louth, author of Bernard Jones’ Diaries. He chaired the Investment Club Clinic, opening with an allegorical tale about three wizards: Mervyn, Darling and Brown. All the panel members were put through their paces, answering a variety of questions from the audience on everything from how clubs could sustain the interest and enthusiasm of their members interested to stop loss strategies and what lessons panel members had learnt from the mistakes of others.
Nick Louth brought the conference to a successful close by presenting awards for the Quiz and Prize Draw. The winners are as follows:
1st Prize: Bela Tiwari (Ab Initio Investment Club).
Bela wins a Technical Analysis training course with Michael Hewson.
2nd Prize: Tehzeeb Gunja (Phoenix Investment Club).
A subscription to TimeToTrade’s premium investment club accounting software
1st Prize: Kwame Adjei.
A subscription to MarketStars, the stock screener from Digital Look
2nd Prize: Peter Salenieks (Dynamic Investment Club).
A subscription to Investors Chronicle magazine and IC Advantage online
Nick Louth Prize
Richard Ford – wins a signed copy of Nick Louth’s latest book in the Bernard Jones series: Dunces with Wolves.
All the speakers did a fantastic job throughout the day, impressing everyone with the breadth and depth of their knowledge and the quality of their presentations and delivery. As enthusiastic investment club members, they were readily able to establish a rapport with the audience. Each one generously donated, typifying the spirit and collective strength of the British investment club movement. The organisers gratefully acknowledge the generosity of their sponsors and the support provided by Digitallook.
You can download copies of the presentations at:
Question: What good investment books can the panel recommend?
Peter Salenieks: Read the best sellers because they’re best sellers for a reason. Martin J. Pring writes clearly on technical analysis and for something unusual, Pablo Triana questions whether financial theories can destroy the financial markets in a book entitled Lecturing Birds on Flying.
Mike Evans: The Next Big Investment Boom by Mark Shipman – an easy read
Chris Rose: Zulu Principle by Jim Slater. Plethora of web sites eg Motley Fool, and relevant online Telegraph / FT pages
Paul Dolman-Darrall: All the classics: Intelligent Investor, The Essays of Warren Buffett,One Up On Wall Street, A Random Walk Down Wall Street, Zulu Principle. Then move on from there.
Question: How do you keep your club members motivated?
Mike Evans: Involve them: Allocate a share from the portfolio for them to monitor and report on at each meeting. Organise an internal competition using notional money, eg Purchase 3-4 shares with a notional £5000 with ability to buy and sell shares during the year and a small prize at end of the year. Competition creates rivalry (friendly) and interest. Improve knowledge. Examine new areas of investment. Eg small caps, emerging markets, commodities etc. If members are not interested then let them drift away as they will be a drag on progress.
Chris Rose: Engagement of all either as champion of shares held or organisation of social events, as well as regular external speakers, fun activities etc.
Paul Dolman-Darrall: We don't, it is up to them to find their own motivation. After all it's a group of people who choose to come together, not a managed club.
Question: What ideas would you suggest for a club stuck in a rut, where activity / interest is limited to 2/3 members?
Peter Salenieks: Investment clubs are about having fun whilst learning about investing, so encourage the social dimension and look to involve members in different ways that suit the contributions they are willing to make. It can help to pair new members with more experienced ones to give them confidence and share knowledge (e.g. when researching new investments). Listen to passive members and understand what would persuade them to become more active. It could be something as simple as meeting on a different day.
Mike Evans: The club is not doing the above or it needs new blood.
Chris Rose: Maybe 2 0r 3 memebers is OK, do you want more ? Merge with another club, recruitment campaign for new members.
Paul Dolman-Darrall: Buy some winners! Always spurs some interest.
Question: If you started your club again today, what would you do differently than you did?
Chris Rose: Agree an investment strategy before buying our first shares. Look at sectors, stop loss, monitoring and trading strategy.
Paul Dolman-Darrall: Change the voting system to pick the ones we keep rejecting.
Question: How do you manage one member’s large loss, when he/she trades for all?
Peter Salenieks: Members share collective responsibility for profits and losses. If the loss happened because one member made a mistake or did not carry out their instructions correctly, then it is important to understand the reasons and put measures in place that prevent it happening again. It is important to do this in a rational way, whilst remembering that to err is human and every club officer is an unpaid volunteer
Question: How would you stimulate creative trading strategies within a club and monitor results / learn from them?
Peter Salenieks: It’s important to review previous trades from time to time, so that you can benefit from hindsight, identify patterns and revise your trading strategies accordingly. Fantasy competitions and watch lists are good ways to experiment with new approaches before taking the plunge. Take the opportunity to meet other clubs and compare notes.
Chris Rose: Don’t be afraid to try things out, perhaps run a paper portfolio before committing real money. Maintain past holdings portfolio in Digital Look to monitor performance of shares held and sold
Paul Dolman-Darrall: Rather than results, we look at why it might work.
Question: What is the best method of holding currencies as investments for long term (not trading)?
Question: Where do you see the market heading in the next couple of months and what are your predications for 2010?
Mike Evans: Markets taking a pause at the moment. Re-examine asset allocation. Have a look at emerging markets, industrial commodities and miners which are all linked to a common theme of continued world growth helped by low indebtedness in China, India, Brazil etc although their export markets to the West may be limited for some time.
Chris Rose: I think UK based stocks are in for a tough time, in line with the UK economy over the next 12 months.
Paul Dolman-Darrall: As my speech mentioned, it will be another bad year for speculators.
Question: Is it possible to bequeath club membership on death?
Peter Salenieks: Assets can be bequeathed when a member dies, either in accordance with their will or under the laws of intestacy. An arrangement whereby someone else automatically assumes the place of a deceased member should be discussed and agreed by the club in advance. It must be in accordance with your constitution and rules.
Chris Rose: Not membership, but the value of the holdings will form part of the estate of the deceased and can therefore be bequeathed as can any other personal asset. The membership agreement will require liquidation of the deceased holding to be paid out in accordance with the execuitors instructions.
Paul Dolman-Darrall: No, presuming you have a standard constitution.
Question: How do you merge investment clubs?
Peter Salenieks: Should not be a problem if using the unit value method of valuation. Check with the broker of the surviving club re what can be done re transfer of members and assets. Need for member details and signatures. Check club rules and need for signatures etc. Or set up an entirely new club. You are governed by the constitution and rules of both clubs. It may be more straightforward to wind them up and transfer the assets in a new club, which will crystallise capital gains & losses, than to merge the clubs, which may entail amendments to the constitution and rules.
Chris Rose: Close both down and reform a new one, or close one down and by units in the remaining one on a prorate basis. Requires both clubs to use a nuit based valuation system.
Paul Dolman-Darrall: Just close one, presuming you are using unit accounting, bring them together.
Question: What laws prevent investment clubs from making certain types of investments?
Paul Dolman-Darrall: Not aware of any.
Chris Rose: Certain products are restricted to personal investors eg ISA and NSC.
Question: What about Northern Rock and Bradford & Bingley PIBS giving interest payment?