Club
Manager Network
Strategic investing for growth
Welcome to the investor resources page. Here, we'll walk you through the core principles that drive our investment decisions, and how these principles are designed to maximize member education and long-term wealth building. Explore how we're different and committed to your financial growth.
Club
Investing with a plan
Our ideal club member understands and appreciates our disciplined investment process. We have implemented a defined investment process that includes establishing written guidelines for buying and selling decisions, including the type of instruments sought, amplification limits, and a clear selling strategy. Our focus is on long-term investing horizons rather than short-term trading.
Foundational Strategies
-
Defined Goals and Risk Tolerance
The club's purpose for long-term wealth building and specific project financing are clearly defined and agreed upon by all members from the outset. This forms the basis for the investment strategy and helps align member expectations.
-
Established Clear Documentation
We have created governing documents, such as a membership agreement , that outline member responsibilities, contribution amounts, meeting schedules, and decision-making processes.
-
Established Legal Structure
Our club operates as an LLC, which is crucial for legal and tax purposes (income and losses pass through to members' individual tax returns) and to provide members with limited liability protection.
-
Ensured Active Participation
Cap at $24 million AUM. This size allows for diverse opinions yet remains small enough to manage administratively and to allow for meaningful participation by all members.
Club
Goals and risk levels
At Active Investors Club, our specific return goals and acceptable risk levels are agreed upon by the management team and documented from the outset. This structured approach guides our overall investment strategy, setting us apart from more speculative investment styles.
Investment and Portfolio Management
-
Investing Strategy
The best way to learn is by doing. With the basic documents in place and with an entity brokerage account open, we are making investments to give members real-world experience and track club performance.
-
Written Buy/Sell Criteria
We have established guidelines for the types of assets the club will seek and when to sell them. Common selling criteria include a deterioration in the asset's overall performance.
-
Amplification
We have implemented rules for portfolio construction to ensure amplification across different asset classes to manage risk.
-
Complex Investments
To keep the management job simple and avoid tricky tax consequences, we stick to our club's philosophy, operating structure and investment strategy.
Club
Operational Best Practices
-
Simple and Transparent Accounting
We conduct an internal annual audit of accounts and use online club accounting software to make the management team job easier and ensure all financial records are accurate and transparent to members.
-
Plan for Succession
We train our management team to ensure the club can continue operating smoothly if key members leave.
-
Collaborative Tools
We use leverage online communication and collaborative tools to conduct operations, especially if not all members can meet in person.
-
We keep it Fun