The name of an investment club can speak volumes about its members. When first confronted by the Best Investment club, you might therefore be tempted to ask, ‘What are they best at?’

However, as club chairman Peter Holeman points out, the name is neither a reflection of their performance nor an effort to tempt fate: ‘I have heard all sorts of explanations for the name. However, the name Best Investment Club in fact stands for the Buckingham Elite Savings Team.’

A mature approach
The club started in 2001 at the University of the Third Age – a self-help organisation that provides educational, creative and leisure opportunities for those no longer in full-time employment. Holeman says, ‘The university ran various clubs but could not support us because it was a charity, so the original members set the club
up outside the university.’

Now comprising a team of nine, including two founding members, the club has almost reached maximum capacity.

‘We believe eight to 12 members is the right amount, mainly because we hold our meetings in our houses and I doubt there would be room for more than that,’ Holeman admits.

Having joined the club four years ago, and chaired for the last two, Holeman has made some very important alterations. ‘Shortly after I started, I went on an investment course that instilled in me the importance of having a stop-loss limit. When I reported back to the club, we decided to put this advice into practice.’

All members are retired, live in and around Buckingham, and have a variety of backgrounds. For example, Peter Holeman was an RAF aircraft engineer.

He adds, ‘I have also tightened the club’s regulations – this is possibly due to my military background. Previously, they were a bit loose and woolly. If you have rules, they need to be specific, but they also need to work for the group of people they apply to. For example, we have now sorted out what happens to the money if members want to resign their share from the club.’

Enjoying the moment
Despite Holeman’s introduction of stricter rules, he insists that the focus of the club should be on having fun. He argues that ‘It is much more of a social activity than a big finance venture. Even today we want members who will fit in socially with the group.’
The Best Investment Club has an annual get-together – usually around Christmas – but, as Holeman points out, they are not averse to the odd tipple or two at other times. ‘Some of us will occasionally go to the pub after our monthly meetings, and we always meet up for a Christmas party.’

The club’s investment strategy is determined by a simple voting process. Each member starts by researching the market, using newspapers, the internet and any other tips they come across. They then email suggestions to the other members and the club votes in the monthly meeting. For a buy or sell decision to be made, two-thirds of the group have to agree.

Holeman says, ‘We don’t have a particular investment strategy. Our investments range from large gambles to steadier options that we hope will make us a profit in the future.’
He adds, ‘We have done well with Petrofac in oils and hold investments in the retail and banking sectors. We had Lloyds TSB previously, but were able to sell it a while ago for a good profit. AIM has been good for us and we have bought Pipex quite heavily in the past.’

Not always successful
However, things have not always been smooth sailing for the Best Investment Club – they have had their fair share of losers. Holeman reveals that ‘In January we stopped using our automated stop-loss limit due to the market fluctuations, and this allowed us to make decisions on share prices as and when we chose. In some instances, this has saved us money, but we have also lost a bit by doing this.

‘We’ve also caught a cold in the property sector. We have been buying and selling shares in Telford Homes quite a lot, but we are suffering now and have made the decision to withdraw from property altogether for the time being. Barclays is another stock that we have held onto for too long. We bought at £5.80 and now it is around £4.00. We are also looking to rationalise our insurance stocks.’

Online access
Each member of the Best Investment Club can access the portfolio online, which makes it much easier for everyone to keep up-to-date with how their shares are performing. This does not mean, however, that rash decisions are made on
the spur of the moment, as Holeman explains: ‘With sudden drops in the market, it is those who are in it for the long term that are best equipped to survive. We have invested in Morrisons and Tesco because, whatever happens, people will always need food.’

Looking to the future, Holeman believes there are a lot of fantastic opportunities
for the Best Investment Club. He asserts, ‘We are looking at Friends Provident because they are subject to a takeover bid. The retail sector is one I think will stay strong and we should be buying Barclays again, as I think it has gone as low as it will go.’