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Article: Investment clubs outperform the experts.
- Article from:
- Black Enterprise
- Article date:
- June 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Earl G. Graves Publishing Co., Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Federick C. Russell gave birth to the modern investment club movement in Detroit in 1940. Unable to find a job and desiring to buy a small business, the recent college graduate formed the Mutual Investment Club as the vehicle for accumlating capital. The club had three objectives" invest every month, reinvest all dividends and buy growth companies.
More than fifty years later, the Mutual Investment Club is still active. Membership has grwon from six people to 22 (although only 15 continue to invest regularly). The group has invested a total of $220,000, from monthly contributions of $20 to $25 during the lifetime of the club. The value of the club's ...