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Meeting: |
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Held at: |
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Time: |
16:40 - 18:20 |
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Prepared by: |
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Chairperson: |
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Present: |
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Adrian B |
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Dave G |
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Geoff O’F |
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Kit P |
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Richard W |
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Apologies : |
None |
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Distribution: |
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Ref |
Description & Progress |
Target Date |
|
AB/0512/01 |
Send bitmap of Llama to DG for inclusion into future club documents |
CLOSED |
|
DG/0512/02 |
Update constitution to include club name and logo |
CLOSED |
|
DG/0512/03 |
Update rules as per agreed amendments |
CLOSED |
|
ALL/0512/05 |
Send a cheque for £100 made out to “Rolling Stocks Investment Club” to Chris B |
CLOSED |
|
DG/0512/07 |
Register with ProShare before 25th May |
CLOSED |
|
ALL/0512/08 |
Send DG home addresses to assist with registration to ProShare |
CLOSED |
|
KP/0512/11 |
Check availability of all members so as to arrange a meeting in mid-June to discuss what should be in the Investment Strategy |
CLOSED |
|
AB/0512/12 |
Bring McCourt Methodology to facilitate discussions at the meeting on Investment Strategy |
CLOSED |
See end of these minutes
AB brought McCourt Methodology sheets and described how they could be used to help solve problems. All agreed to work through the approach in order to help formulate an investment plan.
Purpose : To establish an investment plan.
End-Product : A plan that will set out the framework and guidelines for how we will invest and manage our investments. The plan itself must be evolving and be sufficiently flexible to allow change but not be such that we change it every month. It should be strategic - monthly meetings agreeing tactical implementations/interpretations of the strategy.
Success Criteria : That we produce a plan that we all sign up to.
Known/Needed : CB had sent an email that provided a list of points for consideration which included :-
· Level of risk - e.g. have a bedrock of stable investments with some high-risk, “fun” investments on the edge
· Sectors
· Financial Instruments - agreed that we should start with just Shares as there was plenty to learn in this area alone
· Geography - e.g. UK only?
· Income v Capital - shares purchased for income are generally lower risk than capital growth investments
· Type of Companies
· Short Term v Long Term - shares are generally long-term investments but short-term games are still possible
· Diversification - e.g. spreading risk across companies and/or sectors
· Statistics - e.g. how do we identify good or bad prospects
· Ethical Issues
KP stated that he was in possession of a book called “How to Read the Financial Pages” and that it gives a good description of the mechanics behind the quoted share prices and may give some clues on how to identify well performing companies in particular sectors.
It was clear that before we could invest, we needed to learn a lot more. We will only know how much we need to know when we carry out some research. Some form of ‘fantasy investments’ could help make this learning fun. We could also select a few (3-6) companies and investigate these in more depth (possibly by pairing up). The investment plan would need to cover ongoing research activity.
It was agreed that before we could draw up an investment plan, we would have to make some decisions (e.g. Geography, Level of Risk, etc. from above list) and we would have to do some initial information gathering. The information needed is covered in the list in the following section.
Some actions were identified to help gather necessary information.
What are all the
sectors ?
CB to provide a list (from the FT?)
What is the
general risk in each sector ?
RW to try to find out how we can find this out!
Personal
Interests ?
All to notify CB of any particular objections (and, to a lesser extent, preferences) on sectors
What other
sector characteristics are there ?
RW to try to find this out
What benchmarks
are available ?
KP to explain at next meeting
What different
types of companies are there ? (listings?)
RW to find this out
What are the
different levels of risk for these company types?
RW to try to find this out
Are there
differing abilities to trade in the various companies?
RW to try to find this out
What other
company characteristics are there?
RW to try to find this out
Personal
Interests?
All to notify CB of any particular objections (and, to a lesser extent, preferences) on companies
What types of
research sources are available and what are their uses ?
All to find out some research sources
KP to ask if Ian N has ‘the £5 book’ and, if so, to ask whether it is worth having
Ethical
Dilemmas?
All to notify CB of any ethical issues that would have a bearing on the club’s investment strategy.
The next meeting will be the first of the regular monthly meetings of the club. It will take place on 24 June 1998 although AB will be unable to attend.
Actions
carried forward to next meeting
|
Ref |
Description & Progress |
Target Date |
|
CB/0512/04 |
Open a bank account with Co-Operative bank and allow 2 signatories on cheques (hopefully any two of the members) 0506: More signatures needed - obtained at meeting. |
24/6/98 |
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ALL/0512/06 |
Set up Standing Orders from 15th June to transfer monthly fees into club account 0506: Not progressed due to dependence on CB/0512/04. All to provide cheques for £25 in time for 1st July and to set up monthly standing order in time for the August subscriptions taken on 15th July. |
1/7/98 |
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CB/0512/09 |
Photocopy bank mandate for attaching to minutes |
24/6/98 |
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KP/0512/10 |
Sign hardcopy of minutes and arrange for them to be filed in a ‘minutes book’ |
24/6/98 |
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CB/0605/01 |
Provide a list of all sectors |
24/6/98 |
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RW/0605/02 |
Try to find out how to determine the general risk in each of the possible sectors |
24/6/98 |
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ALL/0605/03 |
Send objections and/or preferences on sectors to CB |
24/6/98 |
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RW/0605/04 |
Try to find out what the characteristics of a sector are |
24/6/98 |
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KP/0605/05 |
Provide an explanation of the various benchmarks available |
24/6/98 |
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RW/0605/06 |
Find out what types of companies there are |
24/6/98 |
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RW/0605/07 |
Try to find out what the different levels of risk there are for the different company types |
24/6/98 |
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RW/0605/08 |
Determine how easy/difficult it is to trade in each of the different company types |
24/6/98 |
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RW/0605/09 |
Try to find out what the characteristics of a company are |
24/6/98 |
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ALL/0605/10 |
Find out some research sources and what they are useful for |
24/6/98 |
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KP/0605/11 |
Ask Ian N whether he has ‘the £5 book’ and whether it is worth having |
24/6/98 |
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ALL/0605/12 |
Notify CB of any ethical issues that would have a bearing on the club’s investment strategy. |
24/6/98 |