26th February 2000
We all appeared in Shares magazine at the end of February - here's the article, reproduced with permission:
Cyberspace
success
Sarah Thompson reports on one virtual club which proves that it is not even necessary for members to meet face-to-face in order to make very real profits
Less than a month ago, some members of the Bradford Graduates investment club had never even met, simply because they live hundreds of miles apart. But, undefeated by geography and with the help of cutting-edge technology, this investment club is a 'virtual' success.
Founder member James Richardson says the Bradford Graduates investment club was established in February 1999. 'I was interested in investing, but looking at my disposable income, I realised I couldn't afford it and that forming an investment club was a much quicker way of reaching the stock market,' he says.
After graduating from Bradford University, 24-year-old Richardson and his friends moved to new homes around the country. Richardson, however, was undeterred. 'I wrote to a number of friends, canvassed their opinions and from here, we thrashed out a constitution,' he says.
Richardson is a computer programmer for Lloyds TSB and although well equipped to tackle the stock market, he was not adverse to taking advantage of easily accessible information. 'The Internet is such a fantastic medium, providing access to information once only available to the City guys. I also read all the money pages,' he says. 'Virtually running the club single-handedly has also taught me a lot about management.'
Bradford Graduates members are linked by regular e-mails and a comprehensive club web site, continually updated by Richardson. 'Most of the members had never met, we'd just seen photos on the Internet. We had our first 'live' meeting a month ago, and after discussing our shares, all went to the pub. Everyone got along very well!' he says.
Richardson has taken on the lion's shares of responsibility and jokingly describes himself as a 'megalomaniac'. 'I am the chairman, web master and treasurer, but having said that, it is everybody's club. I try to encourage people to e-mail the group as a whole with suggestions and comments,' he says. 'In making most of our decisions, majority rules, and members must back their suggestions for share purchases appropriately.'
The Yahoo! web site also plays a significant role in maintaining regular contact. 'Through our membership in the Yahoo! club, we have access to a private chat room and bulletin board which is essential, especially since our next proper meeting will be in April,' says Richardson.
Members now make monthly contributions of £30, and Richardson's only regret is not having contacted ProShare earlier - the organisation promoting group shares ownership. 'This would definitely have saved us a lot of work, especially when sorting out our constitution. We also decided to join ProShare on the basis that its seminars are very enjoyable,' he says.
The Bradford Graduates purchases stocks through the Yorkshire Building Society. 'We are striving to build a portfolio of holdings across the sectors and markets, including AIM and investment trusts. This is very much a long-term venture and we will ride over any short-term losses and hopefully benefit in the future,' Richardson says.
Current shares held include Boots, BT, Vodafone and Digital Animations. 'We are thinking of getting rid of Boots as it's such a dog, but BT and Vodafone are long-term investments which we bought on weakness,' explains Richardson. 'Digital Animations was bought just before the price took a massive hike, and although people are saying we should sell, we are really not interested in short-term fluctuations.'
Richardson is enthusiastic about the future, and firmly believes the benefits far outweigh the risks. 'Although it can be a bit exasperating running the club via e-mail, by informing yourself through ProShare and the Internet, it is definitely possible - I think we have proved that,' he says. 'We have all been able to invest in the stock market earlier than originally thought possible, and everyone is a lot more enthusiastic after finally meeting each other!'
The Bradford Graduates' star is rising and this unique investment club recently entered the ProShare annual awards for Best Web Site, Best New Club and Overall Achievement. 'I'd like to think the web site is pretty good,' adds Richardson modestly.
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