Written By Lisa Breslin
When Westminster resident JoAnne Borrelli first joined a women’s investment group in 1999, she said she “didn’t know the difference between an IPO and the A&P.” Like many of the other women in the group, she left navigating the ins and outs of long-term financial planning up to her husband.
Now JoAnne talks about IPOs, the IBD, P/E ratios and earnings per share with aplomb. Once a month, she meets with a vivacious group of 11 sharp, strong-willed women who form the Naked Ladies Investment Club (NLIC).
Each month, the Naked Ladies, whose ages range from 46 to 70 (ish), enjoy dinner together while they talk about stocks, investments, trends and potential investment troubles. They are savvy about business news, global issues and technological trends.
Most weeks, these women move in different circles; NLIC members are teachers, nurses, business women, lawyers, entrepreneurs, and retirees.
Many of the group’s members belong to garden clubs, hence the name The Naked Ladies, in honor of the tall, bare-stemmed lily that yields large clusters of white, pink or maroon trumpet-shaped flowers in the fall or spring.
“When my tax man first entered ÔNaked Ladies’ on the form, I told him ÔPlease, just put NLIC next time,’” said group member Mary Louis Hoban.
“The Harris Direct representative said, ÔNaked Ladies? Well, be sure to tell me when you are having your next meeting,’” joked Mary Rebecca Kroe.
In addition to Mary Rebecca, Mary Louis and JoAnne, Naked Ladies Investment Club members include Mary Bollinger, Pat Fisher, Chris Hogue, Sara Lowe, Robin Kable, Joan McInerny, Anne Norris and Beth Sergott.
Once a month, discussions about the hassles of internet trading, as well as when to buy and when to sell stocks, brings this diverse group of women together. Conversations about work, retirement, travel, collectibles, children, grandchildren, birthdays, anniversaries, loves lost and fame gained are also mixed into the roots of this club, which has lasted for ten years.
For some women’s investment groups, membership is coveted, sacred, and secret. Rules can be rigid. For other groups, like The Naked Ladies, membership means a relaxed atmosphere to learn about a daunting topic.
“I love this group,” said Sara, NLIC treasurer. “We usually spend about half of our time together talking about stocks and the other half talking about life in general. We are a mixed group age wise, but that doesn’t seem to bother anyone. It’s great to get ideas from everyone.”
A growing number of women’s investment groups have cropped up all over the region. During the ten years between 1988 and 1998, the number of regional investment clubs jumped from 37.5 percent to 50.2 percent of the total, according to the National Association of Investors Corporation (NAIC), or BetterInvesting. Now, women’s investment clubs make up more than 60 percent of the 16,000 clubs that belong to BetterInvesting, which is one of 18 independent, nonprofit, member-driven organizations that offer resources to long-term investors.
“Investment groups tend to lure more women than men,” said David R. Peloquin, a certified financial planner and president of Main Street Advisors, LLC. “Women are more consensus builders, so the attraction to them makes sense. And, if it’s done right, women can get a lot out of investment groups. They certainly learn the difficulty of consistently selecting good stocks.”
“The great thing about all these new women’s investment clubs is that when they start there are usually 12 to 15 members, and only one person has significant investing experience,” explained Ken Janke, chairman of BetterInvesting. “After about five years, all but one member is investing on her own. Members are not scared to ask questions or to learn as much as they can because they are learning together.”
With firm investments in such stocks as General Electric, Johnson & Johnson and Citigroup, the Naked Ladies Investment Club recently moved shares from Altria Group and Constellation Energy to Motorola and United Health Care, Inc. The vote came after a hard sell by group member Joan McInerney, who had researched, watched and personally invested in the stocks.
“One of the goals of the group is to gather and utilize the best information possible when choosing to buy or sell a stock,” Joan said. “The profit is a byproduct of sound research buy and sell principles.”
As of February 2006, NLIC’s investments have yielded approximately a 10.73 percent return since September 1999, according to Sara.
In turn, NLIC members are not strangers to loss.
“When the stock market when went down in 2000, we were really down,” Sara said. “We lost big on some stocks that tanked, but now we are slowly coming back up.”
“During the year 2000 and the broad sell-off in the market that followed, I was amazed at the cool and calm demeanor of the group as a whole,” Joan added. “Where panic selling is a common result of such a sell-off, I was in awe of the calm and prudent voices, as we
weathered the storm, moving forward with reflective and cautious decision making. “
“The stock market is a gamble, but the better informed you are about a company, the better your odds are of making money,” explained Rebecca. “You learn more from mistakes than successes. And, you can and will lose money.”
Before women join investment groups and ride out the highs and lows of the stock market, David urges them to remember that “a rounded portfolio is the key to financial success. Investment groups tend to focus solely on stocks.”
“If someone wants to join a group, great. But go in lightly. Clubs are a great way to familiarize yourself with strategies for stock investment, the terms, the trends,” he said.
It is also wise to select a group of compatible people and to know the group’s long-term goal.
“If there is any one reason a club goes out of business early, it’s because they have different philosophies about investing,” Janke explained. “Some members want to buy and sell every month they meet.”
“If you can’t afford to lose your money, don’t join. It’s like going to the craps table expecting to win a fortune,” said JoAnne. “Some days we win, some days we lose. But unlike the craps table, you do have the opportunity to express your views on where the money should be invested. If you like a challenge, you’ll like investing.”
