Investment clubs are not static organizations. For a variety of reasons – death, apathy, house move, whatever - the membership changes and unless it is to wither away the club must attract new blood. It is best to put in place a system for recruiting new members so that a haphazard and random decision does not upset the smooth running of the club.
A club meeting where the potential member is not present should discuss the application and the decision to admit should be unanimous.
- Pick people who will add an extra dimension to the club – additional experience, specialist knowledge, or even a different generation.
- Each potential new recruit should have a sponsor who knows them.
- The novitiate should attend at least three ordinary club meetings and be encouraged to express opinions (but not, of course, to vote).
- The club chairman and the sponsor should have a private meeting with the newcomer to make sure he or she understands the investment approach of the club and is completely happy with the subscription rate.