Happy Destiny Investment Club

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Happy Destiny Investment Club

• Trudging the road of Happy Destiny
• Investment Education for an
• Better Investing (BI) Club

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Happy Destiny Investment Club

• Started in September, 2001
• Centered in Silver Spring, MD
• Follows the Four Principles of Better Investing
• Investment Education is primary
• Enjoy each others company
• Work as a team

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Unlocking Confidence

• Stay green and teachable.
• An investment club is a learn-by-doing.
• If you dont do then you wont learn.
• Easy does it, but do it!
• HDIC uses the buddy system to learn.
• present SSGs in two-person teams
• Dont take yourself too seriously!

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What is HDIC?

• Is a partnership
• Which files taxes with the IRS and the state of
  Maryland.
• Monies are passed-through to partners on Dec.
  31 of each year.
• Your earnings are based on how long you have been
  a member and how much of the club you own.
• Your expenses are based on your percentage of
  ownership.
• Is a business
• See if we are people you would want to go into
  business with.

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Who is HDIC?

• A diverse group of people who pool their money to
  purchase common stocks
• Look at us as a very small mutual fund where the
  members of HDIC are the stock analysts
• Goal is to make money
• But it is not a 2nd job
• Seek to be both educational and social
• Use knowledge to build your own portfolio

Trudging the road of Happy Destiny
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When We Meet

• HDIC meets on the 3rd Monday of the month
• Start 700 PM End 900 PM
• Meet in Members Homes
• Thrice Yearly Planning Meetings (Mar, Jul, Nov)
• optional
• Twice Yearly Socials (Jun, Dec)
• optional

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HDICs Investment Philosophy

• HDIC will study, buy, hold, re-evaluate and sell
  common stocks listed on any US based stock
  exchange.
• Each company will be analyzed using fundamental
  analysis.
• Fundamental analysis is predicting the future
  based on a study of the companys financial
  statements, past performance, and current
  strategies.
• HDIC looks for companies to grow and increase in
  value over a long period of time.

-- Source HDIC Bylaws, Section 5
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HDICs Investment Goals

• Our financial goal is similar to other BI clubs
  to attain average growth in prices and dividends
  income of at least ten (10) percent, compounded
  annually.
• HDIC should try to double the value of its
  holdings every five years.

-- Source HDIC Bylaws, Section 6
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HDIC Financial Records

• Club Accounting Records
• Is based on the unit value system of accounting
  developed by NAIC.
• Similar to Net Asset Value for Mutual Funds
• Treats unequal members equally.
• Use bivio.com, an on-line club accounting system
• Access is 24-7
• Club Brokerage Statements
• Are on-line Firstrade.com
• Access is 24-7
• Club Bank
• Is local Provident Bank

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Requirements to Join

• Willingness to work as a team
• Desire to learn about fundamental investing
• Become a member of Better Investing
• Have a software that uses the BI forms
• Have the same source of data (SP Stock Data
  Service, SPSD)
• Have basic computer knowledge (Windows)
• Have an email address internet access
• Attempt a SSG

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Costs, Part One

• BI membership 25 per year
• SP Data (was OPS) 25 per year
• Internet Service varies
• Official software 79 to 150 (1-time)
• Education classes varies
• Reference Book 15
• Desire to learn priceless

free when part of the SSG class
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Costs, Part Two

• HDIC membership 50 (one-time fee)
• Initiation 100 (one-time units)
• Monthly dues 20 (min. units)
• Late fees none
• Fines none
• Withdrawal whatever costs club incurs then
  you pay

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Setting Expectations

• How much effort will this take?
• Time commitment per month
• 6 to 8 hours (to start)
• 3 to 4 hours (thereafter)
• Time to achieve proficiency
• 6 to 8 months (the basics)
• Lifetime (to be an expert)
• Types of Educational Activities
• Get a HDIC mentor
• Take local classes
• Practice
• Present with HDIC buddy
• Ongoing learning

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HDIC Meeting Principles

1. We start and end on time.
2. We respect each other therefore, we listen as
   allies because we share common objectives.
3. We value each persons contributions.
4. Each partner leads by example and partners take
   the initiative to make things better.

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HDIC Meeting Principles

1. Though we aim for consensus, the majority rules
   in voting. We make sure all viewpoints are
   discussed and once the vote is taken, we all
   support the groups decision (ungrudgingly).
2. We mentor the newcomer so they can learn. We
   support each other so we can become better
   investors.
3. We rotate club duties and share the workload.
4. We come to meetings prepared.

Adapted SF Chap. NAIC Hi-Rise IC, College
Park, MD
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HDIC Resources

• Introduction to Successful Investing Handbook
  The Official Guide of Better Investing, by Angele
  McQuade, 2004
• Good book on the basics of investment clubs and
  on the Better Investing approach to investing.

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HDIC Resources

• Stock Selection Handbook, by Bonnie Biafore for
  the BI Book Series, 2003.
• A how-to book on BIs primary forms, the Stock
  Selection Guide (SSG) and Stock Comparison Guide
  (SCG), to analyze stocks. Easy to understand and
  well written. Our primary reference book.

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HDIC Resources

• Take Stock A Roadmap to Profiting From Your
  First Walk Down Wall Street, by Ellis Traub, 2001
• Simple and easy to understand book about how to
  use fundamental analysis to study stocks. Comes
  with a CD-ROM has quizzes after each chapter.
  Author is the creator of the Better Investing
  software, Toolkit.

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HDIC Resources

• One Up On Wall Street, by Peter Lynch with John
  Rothchild, 1989
• Former head of Fidelity Magellan Mutual Fund. A
  non-Better Investing book on how to analyze
  stocks fundamentally. Looks for great companies
  that are underappreciated and/or undervalued.

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Welcome

• To learn more please contact us
• Monir Lashgari, President, iaca_at_starpower.net
• Brigitta Bastek, Secretary, paul_bastek_at_msn.com

Trudging the road of Happy Destiny