All it takes is some curiosity and energy on the part of the investor to uncover and interpret these facts. Members report that another problem they face is not knowing what to buy. At times they avoid a purchase decision and hold on to cash. Holding cash is more desirable than buying a stock without adequate study and valuation. However, the well-run investment club will have an officer who will do some preliminary screening to assign stocks for study that appear to be attractive.
Some clubs have small study groups, usually around three people, who do the same thing.
Don't worry about making some mistakes. An error in judgment by an investment club that results in a 30 percent loss in a stock is not a disaster for the club as it could be for an individual. If a club has a diversified portfolio of at least ten stocks, a 30 percent loss in one is only a 3 percent loss for the portfolio as a whole. The club members ask about the balance of the industries represented in their portfolio. Certainly, fifteen stocks in fourteen industries is adequate diversification.