I was just curious to where most clubs stand on buying in
this bear market. Most of our 11 members still want to buy,
but we do have a couple members that REALLY want to hold our
money until the market turns around. I personally believe,
with the long term in mind, it's not a bad idea to continue
making our monthly purchases in solid companies (or as solid
as they let us believe they are). Any opinions here?

Thanks for your input,

Jim

Its really a personal club decision. There is still a good
amount of downside to the market if fears continue and at
the same time there is certainly an oversold component to
the market as well. Our club is continuing to invest our
monthly contributions following a dollar cost averaging
scheme. However, if we had a lot of extra cash I wouldn't
throw it all at the market right now.

Just my 2 cents.

James J. Fiscus, Jr. wrote:
> I was just curious to where most clubs stand on buying in
> this bear market. Most of our 11 members still want to buy,
> but we do have a couple members that REALLY want to hold our
> money until the market turns around. I personally believe,
> with the long term in mind, it's not a bad idea to continue
> making our monthly purchases in solid companies (or as solid
> as they let us believe they are). Any opinions here?
>
> Thanks for your input,
>
> Jim

Jim - Our club is still investing monthly. We have tried to buy companies
with sound financial fundamentals and low price-to-earnings ratios. Still,
there is some merit to having some amount of cash on-hand to purchase
execptional bargains in the future.

Kevin Smith
Ohio Investment Klub

-----Original Message-----
From: club_cafe-owner@bivio.com [mailto:club_cafe-owner@bivio.com]On
Behalf Of James J. Fiscus, Jr.
Sent: Wednesday, July 24, 2002 7:10 PM
To: club_cafe@bivio.com
Subject: club_cafe: Still buying?


I was just curious to where most clubs stand on buying in
this bear market. Most of our 11 members still want to buy,
but we do have a couple members that REALLY want to hold our
money until the market turns around. I personally believe,
with the long term in mind, it's not a bad idea to continue
making our monthly purchases in solid companies (or as solid
as they let us believe they are). Any opinions here?

Thanks for your input,

Jim

We are still investing. There are currently 30 members in
our club. On average 5 members attend the monthly meetings.

Our partnership agreement states that we will continue to invest regulary, regardless of the market outlook. What we have done frequently is vote on proposals to buy certain stocks at a certain price, usually 5-10% lower than the time of our meeting (these are called LIMIT orders). A MARKET order is when you buy a number of shares REGARDLESS of the current price. Sometimes, our order doesn't go through, but often, we pick up stocks we like on the dips.
 
For example, we considered buying more Citigroup at our last meeting. The stock was a bit over $36 per share. We voted to buy 18 more shares (we already had 67 shares) IF IT DROPPED to $32 per share. It did (thanks to the Enron stuff!), and even got lower. It has since returned to above $30. We feel pretty good that we didn't pay $36 for it! If the stock had not dropped, our attitude would be, "No big deal. We have that much more money to invest THIS month."
 
This approach has worked for us during this down market.
 
---William Katona
Ed Traders Investment Club
 
James J. Fiscus, Jr. wrote:
> I was just curious to where most clubs stand on buying in
> this bear market. Most of our 11 members still want to buy,
> but we do have a couple members that REALLY want to hold our
> money until the market turns around. I personally believe,
> with the long term in mind, it's not a bad idea to continue
> making our monthly purchases in solid companies (or as solid
> as they let us believe they are). Any opinions here?
>
> Thanks for your input,
>
> Jim

William D. Katona wrote:
> Our partnership agreement states that we will continue to
 invest regulary, regardless of the market outlook. What we
 have done frequently is vote on proposals to buy certain
 stocks at a certain price, usually 5-10% lower than the time
 of our meeting (these are called LIMIT orders). A MARKET
order is when you buy a number of shares REGARDLESS of
the current price. Sometimes, our order doesn't go through,
but often, we pick up stocks we like on the dips.
 
>
> For example, we considered buying more Citigroup at our
 last meeting. The stock was a bit over $36 per share. We
voted to buy 18 more shares (we already had 67 shares) IF IT
DROPPED to $32 per share. It did (thanks to the Enron
 stuff!), and even got lower. It has since returned to above
$30. We feel pretty good that we didn't pay $36 for it! If the
stock had not dropped, our attitude would be, "No big deal.
 We have that much more money to invest THIS month."
 
>
> This approach has worked for us during this down market.
>
> ---William Katona
> Ed Traders Investment Club
>
> James J. Fiscus, Jr. wrote:
> > I was just curious to where most clubs stand on buying in
> > this bear market. Most of our 11 members still want to buy,
> > but we do have a couple members that REALLY want to hold our
> > money until the market turns around. I personally believe,
> > with the long term in mind, it's not a bad idea to continue
> > making our monthly purchases in solid companies (or as solid
> > as they let us believe they are). Any opinions here?
> >
> > Thanks for your input,
> >
> > Jim

James J. Fiscus, Jr. wrote:
> I was just curious to where most clubs stand on buying in
> this bear market. Most of our 11 members still want to buy,
> but we do have a couple members that REALLY want to hold our
> money until the market turns around. I personally believe,
> with the long term in mind, it's not a bad idea to continue
> making our monthly purchases in solid companies (or as solid
> as they let us believe they are). Any opinions here?
>
> Thanks for your input,
>
> Jim

Jim , our club so far has been comfortable with the NAIC
principles. We invest regularly , no matter what the market
is doing overall we always seem to find a worthy investment
canidate to throw our monthly dues at. I still get confused
when I hear people want to hold there funds until the market
turns around. That translates into club members wanting to
buy high and sell low.
The same members who want to hold when the market is down
are usually the same members who want to buy when the market
is up. This may be a good spot for your education partner
to assighn some reading homework.

Jim, in our club I get to pick out the articles from
sources like BI. I copy the articles and write the name of
the member I want to read each paragraph(s) aloud as part of
our education segment. This has been a great way to keep
everybody involved in learning and it gets everybody
talking. I love this part because it lets me know what they
are learning and reading. My partners range in age from
72years young to 22yrs young. There is always somebody who
missed somthing or did not see somthing or can not remember
somthing, however now there is always sombody else who does
and can remind them. I no longer have to be the heavy. I
hope this helps. Remember we want to invest in stocks not
markets.
Ron Hoskin / V.P. Cheaper Buy The Dozen / Chgo,Il
cbtd@bivio.com