Amy Rauch Neilson relates the stories of successful individuals and investment clubs willing to share the reasons for their success.

The Beardstown Ladies: Lessons taught, lessons learned and moving on (con't)

"You will never be able to measure what your efforts to encourage others have created…Your group alone has changed the way thousands of people think about investments. You have helped people you will never know, and never meet, take a proactive approach to their personal finances and future security."

Despite the support, for a while, people focused on the club's error in calculating their total return, rather than the ladies' true message - the value of investing for the long term. Whether the number was 23.4 percent or 15.3 percent during the club's first 14 years, the real message behind the Beardstown Ladies is that you don't have to be a professional to be a successful investor. We're talking about a group of women who have averaged more than 15 percent over the life of their club - and are giving others the confidence and the know-how to do the same.

With those dark days behind them, the Ladies continue to have a tremendous impact on the education of the amateur investor. These days, the Ladies continue to reach out to beginning investors as well as hold their own on a portfolio that is heading toward the half-million mark. "We're trying very hard to have a portfolio that can be a model for other clubs to look at," Sinnock said. "We continue to speak when we're asked, and invite other clubs to observe our meetings."

The Ladies' hold a model club meeting for other investment clubs three times a year, in February, June and October, and draw anywhere from 25 to 250 people. Groups visiting from other states aren't uncommon, and Sinnock said one club will visit from Texas this October. "It amazes us that people come from that far to attend one of our meetings," she said.

Perhaps it's not so amazing after all, considering what the clubs come away with. Following the model club meeting, during which the Beardstown Ladies conduct their regular business meeting, the investment clubs in attendance have the opportunity to ask questions. The Ladies' try to share some of the following insights from their experiences with beginning investors everywhere:

• In a successful investment club, every member contributes both time and money. "For those clubs who are having problems with attendance or members not participating, we encourage them to play the "Rich Relatives" game," Sinnock said. "Every member gets $10,000 in pretend money to invest in three different companies in any proportion they like."

  "The game gets everyone involved in making choices, reading stock tables and following the companies they chose. Then, six to 12 months later, the gains and losses are announced and the winner usually gets a token gift. It gets everyone involved and serves to motivate those partners who had been passive."

• Set goals. Right from the start, the Beardstown Ladies set their sights on three objectives: Education, Enjoyment and Enrichment, and in that order. "We figured that if we didn't enjoy what we were doing, we wouldn't continue," Sinnock said. "So, sometimes we break away from the rigid routine go out to dinner, visit our brokerage firm or meet with other investment clubs."

• Give every member a stock to follow. "Each year, our members draw for new stocks to follow for the year," Sinnock said. "That way, all of the members really get to know all of the companies in our portfolio."

• If you're looking for investment ideas, try Value Line or Better Investing Magazine (the publication of NAIC). "So many clubs don't know how to get started," Sinnock said. "When I'm looking for an idea, I get a hold of a Value Line and begin looking through the pages and pages of companies."

  "I'm a visual person, so I look for the companies where the line on the graph is going up. Today I start with the summary section of Value Line where I zero in on the top-rated industries. When I determine the industry that I am interested in, I look for the three best performing Companies in the Industry; using Inve$tWare Toolkit software I do the Stock Selection Guides and the Comparison Guide to determine which Company I think will perform the best in the next five years."

• Be flexible. A company doesn't have to be growing at 15 percent to be a good investment. "Keep in mind that smaller companies tend to grow faster," Sinnock said. "So, a mid-size company may only show 10 -12 percent growth per year, and a large company may only be growing at 7 - 10 percent. But companies that have matured tend to be more stable and pay a dividend, adding to the total return of your portfolio."

That was quite apparent on a Saturday morning in late July, when Betty Sinnock had finished sharing her thoughts with me. "If you have any other questions, just call me and leave a message," she told me. "Right now, I'm heading out to pick the corn and freeze it, but I'll be back in later this afternoon if you need anything."