You should base all your club activities on the rules and constitution set out in the ProShare Investment Club Manual. It is the bible of the movement. But there are some Do's and Don'ts that experienced clubs have encountered that have not found their way into the Manual pages. Here are just a few:
- Don't waste time talking about things that are nothing to do with choosing winning shares. It's all too easy to get into deep discussion about what likelihood is there that the treasurer might run off with the money, or whether the club is insured if a bomb drops on the building where the meeting is being held. You are there to search out shares that will go up in value.
- Silver-tongued members will tend to dominate share discussions if you let them. Remember, empty vessels make most noise. So have a set of rules which ensure that you cannot vote on a share before you know all about the business concerned, because if you buy a share on nothing more than a nod-nod, wink-wink it will all end in tears.
- Let variety be your watchword when you come to decide who should be founder members of your investment club. The secret of success is the area of expertise that collectively you can muster. No good having a club where all the members are chemists, you will only be experts in the pharmaceutical sector.
- Take your time. When it comes to making an investment decision, if in doubt, don't. Experienced investors will tell you that if there's an element of uncertainly you should always err on the side of safety. You will win more times than you will lose.