Aug 2008Updated 1/2011

Goal:

Maximize gains while minimizing risk

How: DIVERSIFICATION!!

Utilize the 80/20 rule for the club’s portfolio

80% - Blue Chip * 20% - Others

Purpose:Provides steady growth in our portfolio

* Well established financially sound companies

No more than 25% ownership in any one industry

Purpose: Protects from meltdowns in a particular industry

When Market Prices fall 20% below or increase 50% above the Purchase Price, we will vote to sell

Purpose:Provides automatic triggers to sell stocks and allows efficiency in monitoring them

*** Each Member is responsible for watching stocks but specifically the Financial Partner

Purchase stock shares in multiples of 5 (5, 10, 15 etc)*

Spread out large purchases over time

Purpose:Reap the benefits of “dollar cost averaging”

* Other amounts will be considered on a case by case basis.