Investment Clubs
Posted on March 30, 2008 by Tariq Nelson
In our conversations in the DC area community of moving toward real changes in the way that Blackamerican Muslims have been operating, some of us have been in discussions about forming “Investment Clubs”. I found a video below that discusses the concept:
We do not have to continue associating ignorance and poverty (along with tired slogans) with religiosity
Filed under: Practical Solutions
[...] Consider Investment Clubs. [...]
Wow, I was thinking of just such a concept myself recently. I always have a bunch of business ideas, but I don’t have access to capital. I figured that there must be a bunch of people out there with good idea but no access to capital.
If members of a community got together and everyone put in even a modest amount of money, say somewhere between $100-$1000 each, you could really start getting somewhere with some of the larger communities.
Even nicer, members of the community with expertise in business plans, accounting, technical etc could provide input on a pro bono basis while a venture set up from such an investment is taking off.
At first, its not even that important that a profit should be made, and even breaking even would be a bonus. The experience and education the community gets from such a venture would be tremendous. And in fact, there’s nothing like having a goal, and working towards it that gives a person self-confidence. Having dealt with seeing a couple of periods of unemployment, there’s nothing like having a job/task to do that made me feel happy.
“We do not have to continue associating ignorance and poverty (along with tired slogans) with religiosity”
So true, especially in a religion which positions knowledge at it’s very basis.
K-Dude: Just to make sure you know, the investment clubs that Tariq and the video are talking about are small groups of people who pool their money together to buy investments, such as stocks, as opposed to pooling their money to start businesses. There’s nothing wrong with the latter, of course, but that type of investment is much, much riskier, and runs into a number of issues that must be addressed first and that are potentially divisive among potential owners. Best to find other people who are interested in starting a common business (e.g., creating a partnership, whether it’s in the form of a partnership or a corporation), than to expect people to invest in your ideas. For more information on investment clubs, I’d start off with Motley Fool’s series of articles on investment clubs.
I agree.
ASA Tariq. Sounds great to me. I’ve actually been thinking of the same thing. Of course, I’m always open to hosting a planning meeting, etc.
JDsq: Thanks for the info, I must admit I haven’t yet had the time to watch it. I guess what they’re proposing is like a mutual/managed fund on a smaller scale.
Of course you’re right about what you’re saying. Starting up a business is a whole different kettle of fish. The reason I’ve thought about the kind of arrangement I’ve suggested (and yes admittedly, on a very much idealistic level) is that I’m sure that there must be a lot of brothers and sisters in minority groups that have excellent ideas but just need a break, and hopefully that would create a domino effect.
And to add a little controversy to what I’m proposing, it would be nice to see the immigrant Muslims helping out the indigenous Muslim populations (and I’d say even minority groups that aren’t Muslim) by going so far as to donate money into such a fund, without expecting a return. Most of us immigrant Muslims are doing fairly well and it would be about time to help out the various branches of our communities here at home.
Oh I should add that I’m not looking for investment for MY own personal ideas per se. My job keeps me busy enough without having to delve into other stuff.
Most of my ideas are pretty crackpot stuff anyway. For example, a mail order halal meat company for those who don’t live in an area without a halal butcher. I should probably stick to engineering
That should be those who don’t live in an area WITH a halal butcher
K-Dude:
I guess what they’re proposing is like a mutual/managed fund on a smaller scale.
Yes, that’s exactly what investment clubs are.
The reason I’ve thought about the kind of arrangement I’ve suggested (and yes admittedly, on a very much idealistic level) is that I’m sure that there must be a lot of brothers and sisters in minority groups that have excellent ideas but just need a break, and hopefully that would create a domino effect.
What you want here is microcredit, something like Muhammad Yunus’ Grameen Bank of Bangladesh, which provides microloans (usually of several hundred dollars at the maximum) to those who otherwise would never qualify for credit.
Most of my ideas are pretty crackpot stuff anyway. For example, a mail order halal meat company for those who don’t live in an area [with] a halal butcher.
One never knows.
When I was a kid I bet no one in the heartland of the US thought they’d be able to dine on fresh lobster caught the day before.