Magazine article Black Enterprise

Focused on the Fundamentals: 20/20 Investment Club Sought Information before Investing

Magazine article Black Enterprise

Focused on the Fundamentals: 20/20 Investment Club Sought Information before Investing

Article excerpt

Preparation and education are essential to 20/20 Investment Club's vision for success. For the past nine years, the Los Angeles-based, all-female group has followed a "Learn & Earn" strategy--educating themselves about the stock market before making any investments.

"The learning curve for the club's members has been pretty steep," says Sonya Weaver-Johnson, who founded 20/20 in 1997 with 13 members who each contributed a minimum of $25 per month. "From inception, we cultivated an educational environment by adopting the National Association of Investors Corp. (NAIC) education program," she explains. "Those lessons became an integral part of our monthly gatherings, in which we studied everything from investment terminology to calculating P/E ratios. By working together, we analyze and evaluate stocks that will ultimately help us create a portfolio with a return of 15% compounded annually."

A former day trader, Weaver-Johnson founded the club to share her stock market knowledge with other professional women. The goal was to help them bolster their retirement savings and achieve financial independence by 2020.

After forming the club, members visited libraries, studied books, and adopted the NAIC's Education Program and Stock Selection Guide to learn basic investment terminology. They conducted in-depth research about the stock market and individual investments, memorized formulas, and learned to calculate earnings by hand. "We wanted everyone to understand where the numbers come from," says Weaver-Johnson, who also invites financial advisers to speak to the group about industry trends, performance goal-setting, and investment strategies.

Following NAIC lesson plans, each member completed homework assignments and reported on stocks at monthly meetings until January 2000, when the club made its first purchase: 10 shares of Dell Computer. …

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