BLURT TALK: Are Investment Clubs Still Worth Considering?

in blurt •  2 months ago 

I remember back in the day when both of my parents were involved with some kind of investment club where members invested a certain amount of money either weekly or monthly ans then the money is used to invest in assets or buy stocks and then the profits from the investments are later shared among every member of the club equally based on initial agreement before joining the club. My parents relocated and were no longer members of their respective investment clubs but while they members, I felt this club was one of the best things in adult life and was a great way to improve both financial and social lives.

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But lately, I haven't hear much about these sort of invest clubs. They definitely still exist, but perhaps not as popular as it used it back in the day for some reasons like for instance, people prefer to take on the risk of their investments alone and live with the consequences as opposed to investment clubs, where the risks is share and the decision to invest in anything is by a vote where the decision of the majority rules. Also, I believe people no longer find these investment clubs attractive because there have been reports of people not always agreeing to a particular investment option. There are always long debates and arguments and some people feel its a waste of time.

But here are the great things about investment club which I didn't know about until later. Firstly, these clubs provide an avenue for people of like minds to invest while sharing the risk. Whatever they plan to invest is well criticised and debated hence no stone is left unturned as they take into consideration which investment option is most profitable for the club.

Secondly, these clubs kinda build a social network or connection for everyone involved. People get to create relationships that last a lifetime and can help them on the future. This is how "someone knows someone" and that is truly helpful in the world we live in.

Finally, these clubs are strict with their rules of investment and membership. There are no rooms for mistakes, errors and incompetence so everyone takes the club affairs seriously and that is benefial to every member in the long run. Some members/ family of late members of investment clubs established decades ago now earn monthly or yearly dividend from their investments even when they've retired which is brilliant and helpful when considering the fact that no one really knows their situation in the future.

As much as I prefer investing on my own, I'm seriously considering one of these investment clubs just as another platform for investing. What are your thoughts on investment clubs and would you consider them?

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