BI > MARCH 2004

Rituals Matter

Grounded by Hog Humility

Dear Mr. Senior Contributing Editor:

"Tragic mistake?" I read your March 2003 Better Investing column with a heavy heart. I count myself among the masses who are undoubtedly grateful that your "Rediscovering Hibernation" letter to the stock market bear has seemed to work. We all know that a good nap is a wonderful thing. Thanks for reminding the bear to experience the joys of slumber. Look what a couple of years of rest has done for the stock market bull. He's back and charging just as hard as ever. I do hope that you'll recognize that you may correspond with "his bullishness" without taking unnecessary and unwarranted shots at me. You suggested in last year's column that your acknowledgement of me (from Better Investing, March 2001) was a "tragic mistake."

You were right the first time. Rituals do occupy an important place in our lives. As you have written, we achieve sleep-at-night investing because regular club meetings encourage a discipline of regular investing. Investment clubs are a formidable resource for selecting better companies at better prices. I'm a member of two investment clubs and eagerly await the meetings. It's a chance to catch up on what's going on with Katie Couric. Al Roker invited her to the club meeting after last February's media coverage. There's room under the NAIC Big Tent for the likes of tortoises, hares, bulls, bears, and yes -- an uncommonly habitual and visionary groundhog. I'll call you from the road. John Madden is picking me up in a few minutes. I want to see how much better it is to attend the Super Bowl, rather than watching from Gobbler's Knob.

Punxsy Phil

Seer of Seers

Peerless Prognosticating Phenomenon

Dear Punxsy,

What can I say? I'm sorry and you're absolutely right. Thanks for taking the time to phone in from Branson last week during your Super Bowl voyage. Yes, I think John Madden will make a great club partner, too. And yes, it's a shame that Jen and Ben didn't work out. I had no idea that the two of them met at one of your investment club meetings. Thanks again for setting the record straight.

A Return to Saturday Morning

This past weekend I had the privilege of attending an organizational meeting of a new model investment club to be sponsored by the Southeastern Michigan Chapter of NAIC. Thirty-five brave souls conquered a cold and snowy Saturday morning to explore and form this collaboration.

The experience rekindled memories from 10 years ago when our club formed from a group of friends and family. Although the administrative aspects can begin to resemble the making of sausage, there's a foundation of expectations and joint effort that takes shape.

Ralph Congdon, a SE Michigan Director, explained: "This will be similar to operating our own mutual fund. It's a business with responsibilities and a serious undertaking. But mutual funds are passive, and the similarities actually don't extend much beyond the record keeping. Unlike investing in mutual funds, all club members will participate in the decisions made. Think about the difference between watching a sporting event on television and actually being there (or playing) in the event. Your teammates have a vested interest in helping to make each and every partner a better investor. It's something we take quite seriously -- and it's about as far from passive as you can get. You might be able to see better on the TV at home, but being there is a whole lot more fun." You can't be an NAIC investor alone.

Super Models

The intent of these model clubs is to incubate and demonstrate the power of strategic long-term investing. This new club is promising. Our chapter model club in that suburb of Punxsutawney (Pittsburgh) is among our long-time leading clubs. Phil will enjoy the Super Bowl and discover new magnitudes of media coverage. But how are John and Punxsy going to drive back to Pennsylvania in time to cast a shadow?

Mark Robertson is director of online resources and senior contributing editor for BetterInvesting. He serves as a member of BetterInvesting Magazine's Editorial Advisory & Securities Review Committee. Mark can be reached at Robertson_Mark@comcast.net.