PDF The How to Edition: Special Issue 2015 "How to BEAT THE ...

Benjamin Graham's 10 Rules of Investing see page 6

Georgia Chapter BI Newsletter

The How to Edition:

Newsletter

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"How to BEAT THE MARKET" How To Win in

Benjamin Graham's advice was "Buy LOW sell HIGH".

2016

Do you have a plan?

First make a plan then second work your plan. We'll show you how, just Featured Clubs

consider the following and get on the winning track.

How to Get into the market Locate Good Companies Determine reasonable price ranges How many stocks should you own How should you diversify Portfolio maintenance a must When should you sell

Mutual Investors Investors

Christmas Party

Blue Willow Inn

Social Circle, Georgia See page 4

See page 2 for your outline to get on a winning track and maintain it.

Inside this issue:

Presidents Corner by Howard Johnson

Happy Holiday's to everyone!

My name is Howard Johnson and I will have the pleasure of serving as your chapter President for the next year. First, I would like to thank Ann Newman for the excellent leadership she has provided for the past three years. Ann has guided us as we have re-established our charter as the Georgia Chapter and tried to reconnect to the investment clubs in the state.

"Beat the Market"

1

Make your PLAN

2

Good Companies

5

Prices to pay

7

How many to own

8

Ways to Diversify

9

Maintenance &

When to Sell

10

Chapter Info page 11

Please make sure all your Club Members get a copy of this Newsletter

Page 2

Georgia Chapter BI Newsletter

Set your plan to get on the winning track. How do you stand for the year? "Buy Low sell High".

The How to Edition of 2016, "BEATING THE MARKET"

Whether you are a seasoned investor or trying to get started how do you stand for the year? With proper planning you can do a better job, do you have a plan and are you working the plan? Whether you are starting or restarting? Right here right now. We show you how.

Year to date 2015 the market has fluctuated but with little gain if any. What does this mean to us? Simply that the gainers and losers are fairly equal. Prepare yourself to buy the companies with long term potential skipping over the potential losers.

Benjamin Graham's advice was "Buy LOW sell HIGH" but it's not that easy. Do you have a plan? First make a plan then second work your plan, consider the following and be on the winning track.

1> Get into the market properly and you can expect better results. "page 3"

2> Locate Good Companies with long term potential ignoring the losers and

wait for the Good company to get in your price range.

"page 5"

3> Determine reasonable price ranges then proceed, paying too much for a

good company can develop into unnecessary short term paper losses.

"page 7"

4> How many stocks should you own? Not enough you can't watch prop-

erly but enough to spread your risks.

"page 8"

5> How should you diversify? Industry, company size & international but re-

maining with companies you understand can give you an advantage.

"page 9"

6> Maintain your Portfolio by reviewing insuring the price and the company

maintains the growth you expect.

"page 10"

7> You sell when your company losses its potential to meet your expecta-

tions.

"page 10"

These seven items become simpler if you are a Better Investing member and in a Club where you can discuss and share your due diligence.

The Editor .



Volume 15, Issue 4

Page 3

Getting into the market

Nothing ventured nothing gained

How To Get Into The Market Properly

There are several ways to get into the articles that compare the fees and services

market. If you have a job related 401K plan, provided by the different brokerage compa-

you are already in the market. If you are a nies. member of an investment club, you are al-

ready in the market. What we will discuss in this article is getting into the market with your personal portfolio and as an individual

Our Model Club Plans to Beat the Market

investor. This means you will shy away from mutual funds. Your portfolio will become a "mini mutual" as it grows and becomes di-

Once you have opened your brokerage account, you are ready to purchase shares. You should be prepared to invest a set

versified. You will be the fund manager.

amount on a regular basis. This will result

in "dollar cost averaging". Because of price

fluctuations the same amount of money will

buy more shares when the price is low and

fewer shares when the price is higher. The

average cost will be between the two. You

should also reinvest any dividends received.

Last, but probably one of the most im-

portant of the BetterInvesting principles,

comes into play. And that is to buy quality

companies at a reasonable price. It is very

Howard Johnson President of the Georgia Chapter gets the most out of his meetings

important that both of these conditions are met at every purchase. Buying a quality company at inflated prices does not help your portfolio. The potential for the price to

Unless you are going to attempt to rise has been lessened. When you buy at a

purchase all of your shares directly from the reasonable price, the upside-downside potencompanies (which is not universally avail- tial of the company is retained.

able) you will have to open a brokerage ac-

count. There are full service and discount

Adhering to the BetterInvesting prin-

brokers.

There

are

also

services

that

allow

ciples has proven over and over again to be a successful plan to constructing a profitable

the purchase of partial shares for a mini- portfolio. I wish you Happy Holidays and

mum monthly deposit. Choose the brokerage BetterInvesting in the New Year.

that best fits your needs. There are online

Howard Johnson, President

You will be the FUND MANAGER

Page 4

Georgia Chapter BI Newsletter

Mutual Investors of Atlanta

ACME the Model Club of Georgia, an Asset for all BI Members

celebrated Christmas at the

Blue Willow Inn at Social Circle, GA. month, we reinvest all dividends, we do our

research in purchasing growth companies and

diversifying our portfolio.

If you are interested in visiting us, the ACME Investment Club meets the second Saturday of the month from 12:00 pm ? 2:00 pm at Piccadilly Cafeteria located at 2226 North Druid Hills, Atlanta, GA. For more information, please call or email Lindy Smith at 404-934-6135 sfundraiser@ or Larry Reno at 770-461-4096 TLReno@.

From left to right are Larry and Cindy Reno, Gregg and Ferris Bell, Jim and Linda Kelly with there son Steve and Robert and Elizabeth Floyd. Not pictured are Stuart Lang and Paul Thomas.

We look forward to hearing from you! Melinda (Lindy) Smith,

President of ACME Larry Reno : 770-461-4096

TLReno@

The ACME Investment Club is the Georgia Chapter Model club for individuals wishing to learn more about investing in stock. The club currently consists of 12 members and averages two new prospective members at each monthly meeting. At our November meeting we were delighted to host six gentlemen (see picture) of various professions who are interested in starting their own investment club. Their club will eventually consist of over 20 members when established. Lots of great operational and legal questions were asked of ACME Club members that will hopefully assist them in their endeavor to establish their new investment club. Understanding the Better Investing way of investing was critical to the goals they are trying to achieve.

For the past eight years, the ACME Investment Club has outperformed the market when compared to the Van- "Standing from left to right are Ken Tice, Larry Reno (Treasure and Ga. guard 500 Index Fund (VFINX). Since January Board), Lindy Smith (President), Fatema Shirian and Sharon Stone. 1, 2007 to December 4, 2015, ACME's total Seated are Justin Norman (guest), K. B. Yobuka (guest), Garett Montgomreturn has been 8.8% compared to VFINX total ery (guest), Delano Massey (guest), Aaron Holt (guest). Members not return of 6.5%. That is because our members pictured are Bert Gonzalez-Rubio, Lewis Kropp, Calvin O'Rear regularly invest between $25 to $100 every (Secretary), Roddell Pleasant (VP), Dan Schwartz and Cheryl Sullivan."

Page 5

Newsletter Title

Locating Good companies with POTENTIAL

Now get out there, do your due diligence and salt your portfolios with good companies

If you are a BetterInvesting member Companies Held Buy Our Members. Now

you have a plethora of sources to find good that should keep you busy for a while but

stocks to study. Let's start with the obvious the list does not stop there.

and that is the BetterInvesting magazine.

Then there is the BI website

First there is a section called "Performance . One of my

Prospective" where they show how the BI favorite sections is on the front page and

Indexes (BIXX) and (BIXR) are performing that is First Cut. Every week, members

with other well known Indexes. On this from across the country contribute new

page club accounting shows stock studies. Visit the First Cut collection

for the trailing eight weeks the top 40 of completed Stock Selection Guides (SSG)

stocks that were bought or sold. These are to look for new investment ideas. These

the most active stocks that other BI stocks are broken out in eleven industry

members have already screened as stocks worth investigating.

Other sources in the magazine are

types which helps you diversify your club's as well as your personal portfolios.

Now get out there, do your due diligence and salt your portfolios with good

Investment Club Repair Shop, Stock To

companies.

Study-Featured Company, and Stock tp

Study Undervalued Company. Then in the April edition each year they list the Top 200

Larry Reno

Atlanta BetterInvesting

Newsletter 2016

Bringing Good News to you

Reading this Newsletter is like Beautiful weather for Christmas.

Our circulation goes to the North Pole and is read by all.

Lets read make a plan then work the plan for a winning:

2016 Happy New Year

Lets Get it started right

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