Investment club

An investment club is a group of less than 100 individuals who meet for the purpose of pooling money and investing; members typically meet on a periodic basis to make investment decisions as a group through a voting process and recording of minutes, or gather information and perform investment transactions outside the group. The upper limit for an investment club is 25M on the sum of funds invested as individuals or as a group. There is no lower limit. Investment clubs provide members a means to learn about markets, while meeting and working with people who have similar interests.

History

Although people have been investing in groups for thousands of years, the world's first investment club was allegedly established in Texas in 1898 back in the days of the Wild West when few investments could be considered safe. Investment clubs were seen as an ideal way of spreading the risk – away from just cattle.

While the first investment club on record dates back to the 1800s in Western America, Various online communities devoted to this type of investing have recently emerged and have contributed to the personal investing boom in the United States. One of the reasons that people come together in investment clubs is to learn how to invest.