But it is far from the picture of a typical investment club. PET140's success has been recognized by write-ups in Fortune, Money Magazine and USA Today. The average annual return per year since the club was founded has been about 15 percent. PET140 focuses on long-term growth stocks and uses the Stock Selection Guide to chose its investments. The club requires five years of financial statements and growth in both sales and earnings greater than 15 percent.
Members emphasize high quality blue chips.
This is a lot, even for a million dollar portfolio. A small portfolio might reasonably have 8 to 10 stocks and a large portfolio in the neighborhood of 20. With too many stocks, some receive little attention, thus part of the portfolio floats along on its own. Heilig-Meyers and Silicon Graphics are a fraction of 1 percent of the portfolio. Even if they were to grow tremendously, they would not have a significant effect on results.