Date: Fri 27-Mar-1998

Publication: Bee

Author: SHANNO

Quick Words:

Money-Madness-Madames-stock

Full Text:

Money Madness Madames Invest In Togetherness

(with cuts)

By Joanne Greco Rochman

They call themselves "Money Madness Madames," a name that makes most new

members blush, but this Newtown-based women's investment group is not shy

about its ultimate goal. Members of Money Madness Madames (MMM) intend to

double their money in five years by putting their heads together, studying the

stock market carefully and investing their money collectively. With three full

years into the project, they are right on target and expect to reach their

goal easily.

Following the guidelines of the National Association of Investors Corporation

(NAIC), the group's program includes investing a set sum of money regularly

over a long period of time, diversifying those investments, and selecting

companies that have a strong prospect of being worth substantially more in

five years.

Founded in 1994 by 14 women, the organization has grown to 20 members, a

number which MMM feels should remain the maximum number of active members.

There are many other investment groups in the area. MMM often has guests from

other groups attending its meetings in order to compare and contrast meeting

procedures. Several MMM members are also members of other investment groups.

These members find it exciting and challenging to work with two different

groups at the same time. Women who want to start their own investment groups

also find their way to the MMM guest table.

The collective investing concept is not new. According to NAIC, it has been an

operating presence in the United States since 1900. Some clubs are on record

for accumulating more than $1 million. While experienced investors find

investment clubs a good source of information for broadening their personal

profiles, MMM members, for the most part novice investors, earn while they

learn. Their philosophy incorporates education and promotes individual growth

and decision making, while stressing how to make money by investing in growth

stocks and how to have fun at the same time.

In MMM majority rules. Meetings are held on the first Wednesday of the month

and follow a traditional format, "Robert's Rules." The meetings focus on

reviews of the group's portfolio, stock studies and the collection of monthly

dues of at least $25 per person, earmarked for the purpose of joint

investment.

MMM stocks must meet club criteria prior to purchase and have a projected

earning potential of 12 to 25 percent annually within five years. The club has

an Investment Club Account and places orders through a club broker.

The reasons the women joined this group are as varied as their diversified

stock holdings. They are registered nurses, realtors, editors, artists, and

homemakers. They are women of all ages, from different backgrounds, with a

common goal.

"It's a challenging new learning experience that introduced me to some very

intelligent, sociable women. It empowers me," said MMM Vice President, Barbara

Jung.

"I joined the club originally to meet other investment-minded women and to

socialize while learning about the stock market. Since I first joined, I find

that as a group we socialize less and study and invest more. We seem to excel

at this. We only party two times a year, once during the Christmas holidays

and once during the summer. We're a no-nonsense, business-oriented group. I

love the club and the gals," said Helen Smith.

"I joined the investment club, so that I could educate myself in financial

matters and take financial responsibility. I enjoy the group immensely," said

the group's current president, Marilyn Alexander.

"I joined because like the famously successful Beardstown Ladies who took Wall

Street by surprise, I want my own private jet," said former MMM treasurer

Isabelle Murray with a laugh, adding that all joking aside, being a member of

this club has been a wonderful learning experience.

"You learn without realizing it," she explained. "It's not like sitting in a

classroom. You're with a group of smart, friendly women and find yourself

learning about the market while earning money and having a good time."

Nancy Larin, one of the original founding members, said she knew absolutely

nothing about the stock market before she became a member. Through the NAIC

membership guides, seminars, study groups and monthly meetings, she now has a

firm handle on the stock market, belongs to two investment groups and

maintains a personal portfolio.

Elizabeth Tishion, who just took an early retirement from Danbury Hospital as

RN Administrator in the Cardiology Department, described the investment club

as a new endeavor.

"It's proving to be one of my most interesting learning experiences," she

wrote in her personal profile sheet. (Every member provides a personal profile

for the membership orientation packet, which is distributed to all new

members.) "It is great to understand more about the financial world and to

take a more knowledgeable approach to my own personal finances. My intent is

to start a family investment club and introduce them to `Owning A Share of

America.'"

Ms Tishion, an enthusiastic and energetic member of the group, took it upon

herself to put together an information packet for new members. The orientation

folder includes a partnership agreement, a club description and history, a

membership list, member profiles, meeting format and sample agenda, club

valuation summary, individual valuation summary, original stock study guides,

a copy of Better Investing Magazine , and informative articles. Knowing that

inexperienced members often have a hard time computing stock desirability

formulas, she heads a subcommittee that meets an additional day during the

month in order to catch up to the more experienced members.

A long time member, former president and current treasurer of MMM, Patricia

Denlinger helped formulate the partnership agreement.

"I'm learning a lot," she said. "I couldn't wait to do this. For years I

wanted to form a group to learn about the stock market, but I never had the

time. When I heard about this group and learned that there was an opening, I

joined immediately. I only wish I had joined a group ten years ago," said Ms

Denlinger who described MMM as different from many other clubs because the

emphasis is not on the social aspect and involves a serious commitment and

hard work.

Everyone in the group has to contribute time and effort in order to achieve

optimum results. There are no refreshments served at MMM meetings, though

twice a year, the members pull out all the stops and party in a big way. The

only extra curricula activity that takes members away from their regularly

scheduled meetings is an occasional field trip.

Since the club owns stock in several area businesses, members venture to the

sites for informative tours. Other than that, the meetings run like clockwork.

President Marilyn Alexander takes pride in her no-nonsense, down to business

meetings which usually run for two hours.

With a waiting list of eager potential members, Money Madness Madames seems to

be popular as it forges ahead towards success. In spite of its colorful name

and although members look forward to doubling their money, none of the members

feel that money is the driving force in the success of this club. Learning the

stock market, meeting serious minded women, making important decisions, and

working and pulling together make this investment club a winner.