Gatekeeping Stocks
| HelpRegister |
Gatekeeping Stocks Hello, On another subject, besides taxes, I have a question about how Clubs decide to hold/sell/buy more of a holding. Our club assigns a “Gatekeeper” or a member who watches the stock for 12 months. Per our current by-laws, the Gatekeeper is the only member who can make a recommendation to buy more or sell some or all. In such cases, the Gatekeeper prepares a brief report outlining their rationale for action and presents it at a meeting. As our members have become more experienced and comfortable transacting, we are seeing incidents where members of the club disagree with the Gatekeeper’s recommendation to hold (for good reasons) and want a vote to buy more of a hot stock such as NVDIA. Since the Gatekeeper’s recommendation was to hold, purchasing more of a stock is not on the pre-distributed agenda so members not in attendance would be unaware of the vote to buy more OR would not be able to advise their proxy on how to vote. Has another Club identified a way to fairly handle votes to buy or sell a stock given feedback "in the moment" during a meeting that may be contrary to the Gatekeeper’s recommendation? Many thanks, Dorinda The 28 Club First, look to your Partnership Agreement/Bylaws for guidance. In my club, as long as we have a legal quorum, those in attendance generally can vote to take any action they deem appropriate. We assign members to monitor each holding, but we don't give them absolute power over that investment. They make a recommendation at each meeting based on their current analysis, but we are free to overrule that recommendation if the majority thinks a different action is warranted. Those who are not in attendance and haven't given a proxy, don't have a say in the decision. Ira Smilovitz On Mon, Mar 4, 2024 at 5:20 PM Dorinda Marticorena via bivio.com <user*37592200001@bivio.com> wrote: Hello, Our Partnership LLC and Operations Procedures work exactly the same as Ira describes. Our members would find your by-laws far to restrictive.
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of ira smilovitz via bivio.com
First, look to your Partnership Agreement/Bylaws for guidance. In my club, as long as we have a legal quorum, those in attendance generally can vote to take any action they deem appropriate. We assign members to monitor each holding, but we don't give them absolute power over that investment. They make a recommendation at each meeting based on their current analysis, but we are free to overrule that recommendation if the majority thinks a different action is warranted. Those who are not in attendance and haven't given a proxy, don't have a say in the decision.
Ira Smilovitz
On Mon, Mar 4, 2024 at 5:20 PM Dorinda Marticorena via bivio.com <user*37592200001@bivio.com> wrote:
Our club use a stockwatcher to report on the stock(s) assigned. We rotate assignments once every two years. The SW makes a report to the club with regard to the companies projection going forward and presents, with substantiation, their idea of what the SSG should look like. And we have a very specific method for presenting this information. Club members can, and often do, question the SW report and judgments. The stock is owned by the club not the stock watcher. And the club has the final say as to the SSG judgments. And the club has the final say as to whether to stock is to be bought or sold. One thing we try to avoid is close votes such as 5-4. We prefer having at least a 2 point spread in the vote totals. Bob Shaw Classic Strategy Investment Club > On Mar 4, 2024, at 5:13 PM, Dorinda Marticorena via bivio.com <user*37592200001@bivio.com> wrote: > > Hello, > > On another subject, besides taxes, I have a question about how Clubs decide to hold/sell/buy more of a holding. Our club assigns a “Gatekeeper” or a member who watches the stock for 12 months. Per our current by-laws, the Gatekeeper is the only member who can make a recommendation to buy more or sell some or all. In such cases, the Gatekeeper prepares a brief report outlining their rationale for action and presents it at a meeting. > > As our members have become more experienced and comfortable transacting, we are seeing incidents where members of the club disagree with the Gatekeeper’s recommendation to hold (for good reasons) and want a vote to buy more of a hot stock such as NVDIA. Since the Gatekeeper’s recommendation was to hold, purchasing more of a stock is not on the pre-distributed agenda so members not in attendance would be unaware of the vote to buy more OR would not be able to advise their proxy on how to vote. > > Has another Club identified a way to fairly handle votes to buy or sell a stock given feedback "in the moment" during a meeting that may be contrary to the Gatekeeper’s recommendation? > > Many thanks, > > Dorinda > The 28 Club Our club doesn't allow purchases of a stock where an SSG hasn't been completed and reviewed by the club. Thus, no on-the-spot purchases can be done unless we do a group SSG. Bob Mann Lunch Money Investment Club > On 03/04/2024 8:04 PM EST Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote: > > > Our club use a stockwatcher to report on the stock(s) assigned. > We rotate assignments once every two years. > The SW makes a report to the club with regard to the companies projection going forward and presents, with substantiation, their idea of what the SSG should look like. > And we have a very specific method for presenting this information. > > Club members can, and often do, question the SW report and judgments. > The stock is owned by the club not the stock watcher. > And the club has the final say as to the SSG judgments. > And the club has the final say as to whether to stock is to be bought or sold. > > One thing we try to avoid is close votes such as 5-4. > We prefer having at least a 2 point spread in the vote totals. > > Bob Shaw > Classic Strategy Investment Club > > > On Mar 4, 2024, at 5:13 PM, Dorinda Marticorena via bivio.com <user*37592200001@bivio.com> wrote: > > > > Hello, > > > > On another subject, besides taxes, I have a question about how Clubs decide to hold/sell/buy more of a holding. Our club assigns a “Gatekeeper” or a member who watches the stock for 12 months. Per our current by-laws, the Gatekeeper is the only member who can make a recommendation to buy more or sell some or all. In such cases, the Gatekeeper prepares a brief report outlining their rationale for action and presents it at a meeting. > > > > As our members have become more experienced and comfortable transacting, we are seeing incidents where members of the club disagree with the Gatekeeper’s recommendation to hold (for good reasons) and want a vote to buy more of a hot stock such as NVDIA. Since the Gatekeeper’s recommendation was to hold, purchasing more of a stock is not on the pre-distributed agenda so members not in attendance would be unaware of the vote to buy more OR would not be able to advise their proxy on how to vote. > > > > Has another Club identified a way to fairly handle votes to buy or sell a stock given feedback "in the moment" during a meeting that may be contrary to the Gatekeeper’s recommendation? > > > > Many thanks, > > > > Dorinda > > The 28 Club Exactly. > On Mar 4, 2024, at 8:17 PM, Bob Mann via bivio.com <user*12614800001@bivio.com> wrote: > > Our club doesn't allow purchases of a stock where an SSG hasn't been completed and reviewed by the club. Thus, no on-the-spot purchases can be done unless we do a group SSG. > > Bob Mann > Lunch Money Investment Club >> On 03/04/2024 8:04 PM EST Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote: >> >> >> Our club use a stockwatcher to report on the stock(s) assigned. >> We rotate assignments once every two years. >> The SW makes a report to the club with regard to the companies projection going forward and presents, with substantiation, their idea of what the SSG should look like. >> And we have a very specific method for presenting this information. >> >> Club members can, and often do, question the SW report and judgments. >> The stock is owned by the club not the stock watcher. >> And the club has the final say as to the SSG judgments. >> And the club has the final say as to whether to stock is to be bought or sold. >> >> One thing we try to avoid is close votes such as 5-4. >> We prefer having at least a 2 point spread in the vote totals. >> >> Bob Shaw >> Classic Strategy Investment Club >> >>> On Mar 4, 2024, at 5:13 PM, Dorinda Marticorena via bivio.com <user*37592200001@bivio.com> wrote: >>> >>> Hello, >>> >>> On another subject, besides taxes, I have a question about how Clubs decide to hold/sell/buy more of a holding. Our club assigns a “Gatekeeper” or a member who watches the stock for 12 months. Per our current by-laws, the Gatekeeper is the only member who can make a recommendation to buy more or sell some or all. In such cases, the Gatekeeper prepares a brief report outlining their rationale for action and presents it at a meeting. >>> >>> As our members have become more experienced and comfortable transacting, we are seeing incidents where members of the club disagree with the Gatekeeper’s recommendation to hold (for good reasons) and want a vote to buy more of a hot stock such as NVDIA. Since the Gatekeeper’s recommendation was to hold, purchasing more of a stock is not on the pre-distributed agenda so members not in attendance would be unaware of the vote to buy more OR would not be able to advise their proxy on how to vote. >>> >>> Has another Club identified a way to fairly handle votes to buy or sell a stock given feedback "in the moment" during a meeting that may be contrary to the Gatekeeper’s recommendation? >>> >>> Many thanks, >>> >>> Dorinda >>> The 28 Club Over the years I have belonged to four different investment clubs. None have done it quite that way. In all cases we assigned a stock watcher to each holding, but there was no way they had that degree of control. It was their job to track the news and give us a summary report each quarter, and report on any unusual developments if necessary. And, yes, they would advise to Buy, Sell or Hold. But, and I think this is important in a partnership, the majority decided what to do. Yes, the stock watcher's opinion carries a lot of weight. But, we ask them to share their judgments on the SSG, especially if they are new to this. The point of an investment club is education. That happens through sharing of information and discussion. Linda On Mon, Mar 4, 2024 at 2:20 PM Dorinda Marticorena via bivio.com <user*37592200001@bivio.com> wrote: Hello, |
|
||||||