Web wizards aim to learn from mistakes

BY BEN SHEPPARD

Originally published in the Daily Express, 1st November 2000

THE nine switched-on members in James Richardson's Bradford Grads Investment Club are scattered all over Britain and plot their strategy by e-mail and on their website. Yet for all the high-tech wizardry the club shows an £800 loss on its £2,500 outlay since it was set up about 18 months ago.

Richardson, 25, head of the clubs' operations, says: "We have recently reviewed our approach and are far from disheartened. We are in for the long term."

Perhaps two new recruits from the banking and accounting sectors will help change the fortunes of the team, whose members work mainly in IT and technical jobs.

The Grads was founded by Richardson and four pals who left Bradford University three years ago. It now has nine members.

The launch was a difficult one, with members even thrashing out a constitution before they discovered the Proshare introductory manual that makes the whole process simple.

Richardson, a computer programmer for LloydsTSB in Pontypool, said: "Running an investment club by e-mails and the website is not easy but it's the best way for us since we all went our separate ways.

"Our investment method involves whoever suggests a share becoming its champion. They must follow it closely, convince us to buy it and advise on whether to sell.

"Because of our jobs, our expertise has been confined to the IT sector and we realise we need to be more thorough in our research and to get a grip of the basic technical analysis.

"In the past our discussions were too loose and wide-ranging, so the plan is to be much more focused and selective. We hope to learn from our mistakes."

Among those are Boots, bought 14 months ago at 696p (now ???p), Cable & Wireless at 1194p (now ???p), and DAG at 214p (now ???p).

Member Alistair Lanfear, a business studies graduate, said: "In the early days we were laid back about which stocks to take a punt on.

"But now the portfolio has grown everyone is getting much more proactive and engaged.

"We are about to set up a discussion site to hold proper online conversations rather than endless e-mails, and we will be able to vote on ideas to reach a consensus, which has always been impossible.

"We might nominate one day a month when everyone will be online and decisions will have to be made by the end of the day."

Lanfear, who works for Oracle, the database company, added: "My research area is European investment trusts. I went to a seminar recently that made me very positive about them and suspicious about unit trusts. "I'm trying to persuade the club to put money towards European trusts.

Certainly we are keen to invest abroad, perhaps even in China."

Typically for the club, Alistair posted his report from the seminar on www.bradfordgrads.co.uk.

The club is researching companies that should benefit from the increasing number of retired people with money to spend, and also at the growing health industry. LA Fitness has particularly caught its eye.

After so much electronic communication, the Grads are planning a weekend away together for face-to-face socialising to reinforce the fiscal team spirit.