1.0 Club Mission
The Green Mountain Dreamers Investment Club is a National Association of Investors Corporation (NAIC) sponsored stock investment club that seeks to learn about investing through the shared research and study of its members. To further education and its members wealth, the club members pool assets in order to build a balanced portfolio of stocks.
2.0 Membership
The club will have a maximum of 18 members. All members are expected to attend monthly meetings, pay club dues, and perform stock research to be shared at club meetings. Current costs include a one time fee of $50 for general club expenses and a $50 per month contribution for investments, to be collected at each months club meeting. Each individual is considered a member and is responsible for club fees. New members are accepted by simple majority vote of the current club members, after participating in at least 2 monthly meetings. Additional periodic fees or changes in the monthly investment contribution are approved with a 2/3 majority vote.
Club members wishing to withdraw the partial or total value of his/her portion of the club's portfolio must inform the club president in writing. Proceeds will be distributed within 60 days of receiving the written instructions. Periodic fees are not reimbursed.
3.0 Officers
The club will have a president, vice-president, secretary, treasurer, and broker. Each officer is elected in September for one year, for no more than two consecutive years in one position. In addition, one of the officers will act as the "contact" person to the national organization of the NAIC. The President will run club meetings. His/her signature is required on all accounts. The Vice-president will run club meetings in the absence of the club president. The Secretary will take minutes at all club meetings, for distribution at or before the next monthly meeting. The Treasurer will maintain the club's checking account and the total club and individual member valuation in the portfolio (cash and securities). The Treasurer will provide each member with an accounting of his/her portion of the club's income tax liability by February 15 of each year. The broker will maintain the club's brokerage account, placing buy and sell orders as authorized by the club.
4.0 Club meetings
The club will make all decisions by simple majority vote of the members present at the meeting. Quorum is 3/4 of the in-state membership. Meetings will contain the following elements: 1) review, correction, and acceptance of last months minutes 2) discussion and action on any new or deferred club business 3) presentation, discussion, and vote on stocks under consideration for the club's portfolio, and 4) general discussion on investing.
5.0 Stock analysis methodology
All stocks to be considered for inclusion in the club portfolio will be analyzed using the NAIC Stock Selection Guide (SSG). Each member will sponsor stocks that he/she feels is appropriate for club consideration; completing, presenting, and providing all members with the SSG for this stock. In addition to the SSG, a Value Line, Standard & Poor's, or equilvalent, and Annual Report, 10K, or 10Q will be provided and presented for analysis and discussion. Each member will have the opportunity to present new stocks before detailed club analysis and discussion. After the initial presentation, a Stock Comparison Guide (SCG) will be prepared, grouping stocks by industry if possible. A vote to buy a stock may occur at the meeting in which it was first presented, however in most cases the vote will occur at least one month later. The out-of-state members will be mailed a completed SSG for stocks under consideration. Out-of-state members will vote by US or E-mail prior to the monthly meeting in which the stock is to be voted on for inclusion in the portfolio.
When a stock is added to the club portfolio, a member is assigned to follow the stock and present a brief summary at each meeting of any new company news or changes in its fundamentals. Use of NAIC tools such as PERT are encouraged. All stocks in the club portfolio are to be review at least once a year.
6.0 Club portfolio
The club portfolio will seek a balance of small, medium, and large capitalization stocks, across multiple industry groups. Capitalization is defined as follows: small = sales<400 million, medium = sales >400 million <4000 million, large = sales>4000 million. The club seeks capital appreciation of its portfolio by using a "buy and hold" approach. Stocks are selected based on the fundamental analysis of each company.
7.0 Amendments to By-laws
The club By-laws may be amended by 2/3 majority vote. Out-of-state members will vote via Mail or E-mail.
Amendment I: Redemption of Member Shares
Amendment II: Selling of a Stock
Before a stock is sold from the club portfolio chapter 15 "Deciding When to Sell" of the book "Starting and Running a Profitable Investment Club," is considered and applied to the stock."
Revised March 13, 2000