Happy Destiny Investment Club “Trudging the road of Happy Destiny”

Happy Destiny Investment Club “Trudging the road of Happy Destiny” Investment Education for an Better Investing (BI) Club www.bivio.com/hdic 1

Happy Destiny Investment Club Started in September, 2001 Centered in Silver Spring, MD Follows the Four Principles of Better Investing Investment Education is primary Enjoy each other’s company Work as a team www.bivio.com/hdic 2

Unlocking Confidence Stay “green” and teachable. An investment club is a learn-bydoing. – If you don’t do; then you won’t learn. Easy does it, but do it! HDIC uses the buddy system to learn. – present SSGs in two-person teams Don’t take yourself too seriously! www.bivio.com/hdic 3

What is HDIC? Is a partnership – Which files taxes with the IRS and the state of Maryland. – Monies are “passed-through” to partners on Dec. 31 of each year. – Your earnings are based on how long you have been a member and how much of the club you own. – Your expenses are based on your percentage of ownership. Is a business – See if we are people you would want to go into business with. www.bivio.com/hdic 4

Who is HDIC? A diverse group of people who pool their money to purchase common stocks Look at us as a very small mutual fund where the members of HDIC are the stock analysts – Goal is to make money – But it is not a 2nd job – Seek to be both educational and social – Use knowledge to build your own portfolio www.bivio.com/hdic “Trudging the road of Happy Destiny” 5

When We Meet HDIC meets on the 3rd Monday of the month Start 7:00 PM; End 9:00 PM Meet in Member’s Homes Thrice Yearly Planning Meetings (Mar, Jul, Nov) – optional Twice Yearly Socials (Jun, Dec) – optional www.bivio.com/hdic 6

HDIC’s Investment Philosophy HDIC will study, buy, hold, re-evaluate and sell common stocks listed on any US based stock exchange. Each company will be analyzed using fundamental analysis. Fundamental analysis is predicting the future based on a study of the company’s financial statements, past performance, and current strategies. HDIC looks for companies to grow and increase in value over a long period of time. -- Source: HDIC Bylaws, Section 5 www.bivio.com/hdic 7

HDIC’s Investment Goals Our financial goal is similar to other BI clubs: to attain average growth in prices and dividends income of at least ten (10) percent, compounded annually. HDIC should try to double the value of its holdings every five years. -- Source: HDIC Bylaws, Section 6 www.bivio.com/hdic 8

HDIC Financial Records Club Accounting Records – Is based on the “unit value” system of accounting developed by NAIC. Similar to Net Asset Value for Mutual Funds – Treats unequal members equally. – Use bivio.com, an on-line club accounting system Access is 24-7 Club Brokerage Statements – Are on-line – Firstrade.com Access is 24-7 Club Bank – Is local – Provident Bank www.bivio.com/hdic 9

Requirements to Join Willingness to work as a team Desire to learn about fundamental investing Become a member of Better Investing Have a software that uses the BI forms Have the same source of data (S&P Stock Data Service, SPSD) Have basic computer knowledge (Windows) Have an email address & internet access Attempt a SSG www.bivio.com/hdic 10

Costs, Part One BI membership: 25 per year S&P Data (was OPS): 25 per year Internet Service: varies Official software: 79 to 150 (1-time) Education classes: varies Reference Book: 15* Desire to learn : priceless www.bivio.com/hdic * free when part of the SSG class 11

Costs, Part Two HDIC membership: 50 (one-time “fee”) Initiation: 100 (one-time “units”) Monthly dues: 20 (min. “units”) Late fees: none Fines: none Withdrawal: whatever costs club incurs; then you pay www.bivio.com/hdic 12

Setting Expectations How much effort will this take? – Time commitment per month: 6 to 8 hours (to start) 3 to 4 hours (thereafter) – Time to achieve proficiency: 6 to 8 months (the basics) Lifetime (to be an expert) – Types of Educational Activities: Get a HDIC mentor Take local classes Practice Present with HDIC “buddy” Ongoing learning www.bivio.com/hdic 13

HDIC Meeting Principles 1. We start and end on time. 2. We respect each other; therefore, we listen as allies because we share common objectives. 3. We value each person’s contributions. 4. Each partner leads by example and partners take the initiative to make things better. www.bivio.com/hdic 14

HDIC Meeting Principles 5. Though we aim for consensus, the majority rules in voting. We make sure all viewpoints are discussed and once the vote is taken, we all support the group’s decision (ungrudgingly). 6. We mentor the newcomer so they can learn. We support each other so we can become better investors. 7. We rotate club duties and share the workload. 8. We come to meetings prepared. Adapted: SF Chap. NAIC & Hi-Rise IC, College Park, 15 www.bivio.com/hdic MD

HDIC Resources Introduction to Successful Investing Handbook: The Official Guide of Better Investing, by Angele McQuade, 2004 Good book on the basics of investment clubs and on the Better Investing approach to investing. www.bivio.com/hdic 16

HDIC Resources Stock Selection Handbook, by Bonnie Biafore for the BI Book Series, 2003. A how-to book on BI’s primary forms, the Stock Selection Guide (SSG) and Stock Comparison Guide (SCG), to analyze stocks. Easy to understand and well written. Our primary reference book. www.bivio.com/hdic 17

HDIC Resources Take Stock: A Roadmap to Profiting From Your First Walk Down Wall Street, by Ellis Traub, 2001 Simple and easy to understand book about how to use fundamental analysis to study stocks. Comes with a CD-ROM has quizzes after each chapter. Author is the creator of the Better Investing software, Toolkit. www.bivio.com/hdic 18

HDIC Resources One Up On Wall Street, by Peter Lynch with John Rothchild, 1989 Former head of Fidelity Magellan Mutual Fund. A non-Better Investing book on how to analyze stocks fundamentally. “Looks for great companies that are underappreciated and/or undervalued.” www.bivio.com/hdic 19

Welcome To learn more please contact us: Monir Lashgari, President, [email protected] Brigitta Bastek, Secretary, paul [email protected] “Trudging the road of Happy www.bivio.com/hdic Destiny” 20