33 - Sunday, February 16, 1986 - North Shore News ien cash-in on investment club TWO YEARS ago, i2 North Shore women with almost no stock market expertise decided they wanted to learn about investments and maybe make a little money. Today, they collectively own stocks and mutual funds worth thousands of dollars. Gloria Magnussen was one of the women who initiated the 12- member investment club in 1984. She had heard of other investment clubs, where members. contributed a set amount of money each month towards the purchase of stocks. Together with another woman, she recruited members, then used in- formation from the Canadian Association of Investment Clubs to draw up the bylaws for her club. - The women involved with the investment club range in age from 35 to 58. Each put up $100 in seed money, and now contribute $25 per month to the club. The women take turns at chairing the club and By LISA SMEDMAN Contributing Writer at doing its accounting and minutes, STOCKS SELECTED Stocks are selected by a commit- tee of four women. Each club member takes a turn at being on the selection committee. “That’s one way of learning,”’ says Magnussen. ‘‘This whole pro- cess is a learning process, because none of us knows enough about it.” When the club was first formed, the women turned to stock brokers and sellers-of mutual funds for in- formation. Several experts on in- vestment have spoken at the club’s monthly meetings. The club also toured the Vancouver Stack Ex- change and a stock broker’s office. Other information and “tips” . came from friends who dally in the stock market. So far, most of the club’s funds have been invested in blue chip stocks and mutual funds. But the club has recently branched out into penny stocks, after having found a broker who was willing to handle smaller transactions. PROFITS USED Club members have agreed that, for the first five years of the club’s existence, all profits will be put -back into further investments. The women go by a general! rule of thumb. “If it doubles, sell it - don’t be greedy,’’ quotes Magnussen. ‘‘And when we see something going down, we usually sell it.” Some of the penny stocks the club has purchased did lose money, and were sold at a loss. Others were sold only part way through a climb. But the blue chip stocks and mutual funds grow steadily, if slowly. It’s all part of the learning pro- cess. ‘One of the first things I do every morning is to read the business section,’’ says Magnussen, eyes scanning the stock listings. Other club members draw up charts of the progress of a particular stock, or do research in- to companies on their own. Others attend investment seminars. INFORMATION POOLED Information, like money, is pooled. Currently, the women are learning about ‘‘seed shares’’ - money invested in a company that is just starting out. Magnussen says she has learned a lot about the stock market through the investment. ciub, but says there is always something new to discover. ‘*You can never learn encugh avout it,"’ she says. The club is closed to new members, but any group can set up a similar club with help from the Canadian Association of Invest- ment Clubs. A special feature of THE VOICE OF NGCITH AND WEST VANCOUVER.” — 80- 119 Day Term Deposits on amounts over $10,000 Higher rates available on amounts over $100,000 INVESTMENT CERTIFICAT! MEASURE UP TO. ROYAL TRUST’S? -We have exactly what you want ina GIC: competitive rates, unquestionable security and a full range of term and interest options. There is no need to look any further than Royal Trust. Call us now for full details. North Vancouver 1524 Lonsdale Ave. 984-4466 * Rates subject 10 confirmation { Interest paid at maturity ; -. Member Canada Deposit Insurance Corporation West Vancouver 1760 Marine Drive Hollyburn Plaza 922-3276 What a financial. partner should be ROYAL TRUST inancial Services