1. Investing through Investment Clubs Mahogany Money Machine Investment Club

2. What is an Investment Club? A group of individuals interested in learning how to invest in companies, make money and have fun!

3. Why Invest Now? Know money before you get it Learn how companies & economy work Head start gives big returns!

4. Head Start Gives Big Returns! Assumes: $1000 per year 8.5% return

5. Clubs Invest In... Stocks (fraction of ownership in a corporation) Bonds (debt issued by companies or governments) Mutual Funds (collection of stocks and/or bonds, managed by professionals) Real Estate (residential, commercial) Common Stock Total Return10.2% High Grade Corporate Bonds5.4% Treasury Bills3.7% Inflation Rate3.1% Total Return on Investments (1926-1994) Source: “Starting and Operating a Profitable Investment Club”, p.4, by T. O’Hara, K.S. Janke, and K. Janke

6. Mahogany Money Machine (m 3 ) Investment Club Conceptualized and organized in 1999 after BGESS Financial Seminar by Al Crawford General partnership since January 2000 Over $15,000 in assets with 7 stocks $30/month contribution Belong to National Association of Investors Corporation (NAIC)

7. Mahogany Money Machine (m 3 ) Investment Club Mission Statement The Mahogany Money Machine ( m 3 ) is a stock investment club organized to promote investment education and profit through the shared research and study of companies by its members.

8. m 3 Investment Objectives/ NAIC Goals Education – Stock Search – Stock Analysis Profit – Growth (growth companies: 14.5% per year) – Buy and Hold (reduce commission costs and taxes) – Diversification (size and industry) – Regular Investing (dollar cost averaging) – Earnings Reinvestment (compounded interest)

9. m 3 Investing Process m 3 Investing Process Stock search method (entire market or industry) –Narrowing 10,000 to 5 stocks Individual stock analysis –Stock Selection Guide Additional research –Value Line, Standard & Poor's –Annual Report (or 10K) Presentation, discussion and vote

10. Is An Investment Club Right For Me? Responsibilities – Regular Meetings – Monthly Tasks – Monthly Contribution Benefits – Less Cash to Start – Diversify Quicker Than If Alone – Study Group for Motivation

11. Contact Us If you have questions or want to give us feedback: Gregory Lawrence, President: gregorylawrence@gmail.com gregorylawrence@gmail.com Kenya Wheeler, Treasurer: kenyaw@gmail.com kenyaw@gmail.com

12. Stock Selection Guide (SSG): An Analysis Worksheet Company Strength (sales and earnings growth) Management Strength (profitability) P/E ratios (under/overvalued?) Upside vs. Downside Potential Buy, Hold and Sell Ranges

13. Steps Toward Investing Pay down your credit cards Emergency savings Participate in retirement plans Start/Join an Investment Club!!