What are investment clubs?

Investment clubs are usually a group of amateur investors who learn about investing by pooling their money and investing it is a group. In the United States, there are two formal definitions of investment clubs that are complimentary. The Securities and Exchange Commission (SEC) has defined investment clubs as:

What is Group investing?

Group investing is when like-minded friends or family come together to pool capital together to purchase a wealth-building asset jointly. When we think about “group investing” or “investing clubs,” a lot of us probably picture the old “stock clubs” of the 1980s. Do a lot of people still come together to invest in stock?

What makes a good investing club?

The biggest is community and education. With an investing club, you're working with others to identify investing ideas, and you're probably going to learn a thing or two. Different clubs have different rules, but a common theme is each member identifies investments, and then shares their thoughts with the group for critique.