share clubs

locky76

i know this is non farming but i've an inherent trust in agri peoples sound judgement of financial situations so here goes: i am thinking of starting a share club with a friend of mine. we kicked around a few ideas and came up with a ten member club at €1000 perperson entrance fee and €100 per month thereafter. invest the initial ten grand in three or four companies and meet up every three months to review our investments and decide on new ones based on the money coming in (€1000 per month). it's meant to be very popular in Australia and it allows for modest investment but with a wide portfolio. anyone with ideas on this?

masse5455

scam

bk1991

id rather use my money to light the fire than give it to ye :D

Rujib1

As you said in your post, agri people have sound business sense. You have been proven dead right by the first two people who replied to you :p. Us agri guys, can smell a scam artist a mile off :D

R1

locky76

how exactly is it a scam. it's ten people who are ordinary joes deciding they want to invest in the stock market as a mini co operative. back up your scam claims!

bk1991

locky76 wrote: »

how exactly is it a scam. it's ten people who are ordinary joes deciding they want to invest in the stock market as a mini co operative. back up your scam claims!

ok first off where do u think us farmers can come up with 1000 euro to start with let alone the 100€ every month if u looked around the farmers
cattle pricies down
milk pricies down
grain pricies down
vegtable pricies down `
farms have no ****en money for investing look at everyone that had money invested where it all go ?????????

masse5455

dead right lad cheeky yokes looking for a soft few pound go out and work and leave us farmers alone...

bk1991

masse5455 wrote: »

dead right lad cheeky yokes looking for a soft few pound go out and work and leave us farmers alone...

have u anything to ad to what i said and we loseing put anywahere else

snowman707

bk1991 wrote: »

have u anything to ad to what i said and we loseing put anywahere else

Headage down
reps down
forestry premium ... down
rain ... down
rain ... down
rain ... down


fertilizer... up
insurance .. up

bk1991

snowman707 wrote: »

Headage down
reps down
forestry premium ... down
rain ... down
rain ... down
rain ... down


fertilizer... up
insurance .. up

tanks :D

locky76

have you any plans to retire?
can you not see the merit in looking at options towards building up a retirement fund?
we have ten people gathered to have a go at this (two of them being full time farmers and another five part time farmers),
easy to sit back and pass smart ass comments but you still haven't outlined where share clubs are a bad idea.

Claasman

locky76 wrote: »

have you any plans to retire?
can you not see the merit in looking at options towards building up a retirement fund?
we have ten people gathered to have a go at this (two of them being full time farmers and another five part time farmers),
easy to sit back and pass smart ass comments but you still haven't outlined where share clubs are a bad idea.

do the members of the fund manage it, or are the pooled resources used to hire a fund manager or advisor?

Casinoking

If I had a grand to invest I'd be doing my own thing with it, the more people get involved the more differences of opinion you'll come across and we all know what happens when people disagree over money.....

locky76

Claasman wrote: »

do the members of the fund manage it, or are the pooled resources used to hire a fund manager or advisor?

the members of the fund manage it. most of us have been involved in point to point horses so we've dealt with similar amounts of money before and haven't fallen out over it. i have my own pension fund whcih is managed by "experts" but i like the idea of also having a little privately managed fund as well.

Claasman

So, who decides where to invest, is a vote taken between members? how is it run, i.e a private limited company or co-operative? sorry about all the question, it seems like a similar set up to a machinery co-op?

locky76

Claasman wrote: »

So, who decides where to invest, is a vote taken between members? how is it run, i.e a private limited company or co-operative? sorry about all the question, it seems like a similar set up to a machinery co-op?

you get general consensus on how the club is to run. you then draw up a constitution (they're available on line) and members can join then. you meet every three months to decide what to do with the money building up in the pot. you won't get rich but if it works well they're meant to be good fun and should leave you a few quid after the term is up.

Mr. Pseudonym

locky76 wrote: »

have you any plans to retire?
can you not see the merit in looking at options towards building up a retirement fund?

Hi Locky,

As a matter of interest are you using the share club as a way to build up your retirement fund? If so you might look at PRSAs as a tax efficient way of building up a pension fund whilst also getting exposure to equities.

locky76 wrote: »

i have my own pension fund which is managed by "experts" but i like the idea of also having a little privately managed fund as well.

If you are not happy by the way the "experts" are handling your pension fund, you should contact your provider as there may be an opportunity for you to take a more "hands-on" approach to your pension and more importantly where your money is being invested.

locky76 wrote: »

you get general consensus on how the club is to run. you then draw up a constitution (they're available on line) and members can join then. you meet every three months to decide what to do with the money building up in the pot. you won't get rich but if it works well they're meant to be good fun and should leave you a few quid after the term is up.

Just a few questions on the share club itself:
Will the share club be purchasing shares in various stock markets eg FTSE, Nasdaq, Dow?
How will the shares be held - Nominee A/c, Crest A/c or physical share certificates?
Will the €100 per month cover the admin costs of purchasing and selling the stock?
Will each individual be expected to do there own tax computation eg income tax on dividends and CGT on sales (if any).
When you are choosing individual shares to purchase, what criteria will used ie P/e ration, Dividend Yields, NAV of individual companies or just a few punts?

As Classman has said for the amount of money involved I would be looking to do something myself. If I were in your position I would look at low cost unit link funds. Ok maybe not exciting as the shares, but the risk can be spread and you are not waiting every few months to invest your money as it can be invested on a weekly or monthly basis.

Having said all of the above, I hope the share club goes well for you and your friends. As you say, it could be good fun but as will all financial products, tread carefully & buyer beware.

leitrim lad

locky76 wrote: »

i know this is non farming but i've an inherent trust in agri peoples sound judgement of financial situations so here goes: i am thinking of starting a share club with a friend of mine. we kicked around a few ideas and came up with a ten member club at €1000 perperson entrance fee and €100 per month thereafter. invest the initial ten grand in three or four companies and meet up every three months to review our investments and decide on new ones based on the money coming in (€1000 per month). it's meant to be very popular in Australia and it allows for modest investment but with a wide portfolio. anyone with ideas on this?

i think your one of these fellas who was talking when you should be listening,

fair play to the lads ,

scam,


now close the door on your way out ,and dont come back ,you smell of a banker

locky76

leitrim lad wrote: »

i think your one of these fellas who was talking when you should be listening,

fair play to the lads ,

scam,


now close the door on your way out ,and dont come back ,you smell of a banker

fair play you Leitrim lad for inviting me outside the door but i think i'll pass. i'm a qualified tradesman who has recently graduated with a 3rd level degree in a different field, i'm fortunate enough to still have a job. i do a bit of part time farming and i've a few spare quid every month which i'd like to invest, if you've nothing other than smart arse comments to make please don't contribute, if you feel it's a scam, can you please back up those claims, i'm not looking for anyone to join, only some advice from people with something constructive to say ie something better than "now close the door on your way out ,and dont come back ,you smell of a banker".

Claasman

My uncles(2 farmers, 1 acc) used to have a kind of a share syndicate between them alright, but it was more out of interest, than anything,id say. They were all pretty well clued in when it came to money matters and they made a few bob off it alright as a sideline.
your system prob would work, but the people invested should have an interest in it. Maybe test the waters by doing some fantasy trading, i used to do a bit on bullbearings.co.uk
see how it goes.