Investment Club Scores Gains, Has Fun

by Mark Friedman  on Monday, Jun. 23, 2014 12:00 am  

The investment club started trading in 2011. Some of its central Arkansas members include, from left, Vernon Scott, Scott Schuldt, Daniel Robinson, Lee Welfel, Dr. Cole Brucker and Matt Black. | (Photo by Jason Burt)

The meetings, held on the first Wednesday of the month, can last up to four hours.

The group’s goal is to have 60 percent of its portfolio in long-term holdings and the remaining 40 percent in speculative investments, Welfel said.

It currently has nearly $22,000 in speculative investments, $43,000 in long-term holdings and about $12,400 in cash that is used for day trades.

Welfel said the group has done well with some of its stock options play, where some have seen more than 1,000 percent returns. Other options, though, have fizzed and the club lost its investment in the option. With stock options, the investor could buy or sell the shares at a predetermined price during a window of time or on a certain date.

“The market was up as a whole [in 2013], but we did a lot of options plays last year that worked out very well,” Welfel said.

Still, he said he’s not surprised that the club’s investments have grown so much in three years.

“We have a great group,” Welfel said. “I trust our group and some of the minds in the group more than I trust a lot of financial advisers.”

Welfel doesn’t consider the club as his main investment vehicle, but more as of a hobby that one day will pay off.

“We actually have a lot of fun with it,” Welfel said.



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