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Billionaire International Group (BIG) is an investment club based in Chicago, IL that operates in accordance with principles of the National Association of Investment Clubs (NAIC). We are structured as an Illinois General Partnership, with the partners having equity interests in the Partnership in proportion to their monetary contribution. Our mission is twofold: (1) to educate ourselves on stock equity investing, and (2) to produce a financial return that beats that of the Wilshire 5000 index. We follow a Growth At the Right Price (GARP) investment strategy, which:
- requires us to choose stocks with a minimum of five years' of public operating history
- prevents us from investing in newly-public companies
- might be considered cautious
- allows us to participate in growth industries at reasonable valuations
Over our four-year operating history, we have produced the following average annual returns as of July 2001:
- 1 year return of -11% vs. Wilshire 5000 2% return
- 3 year return of 3% vs. Wilshire 5000 1% return
- Life of fund of 8% vs. Wilshire 5000 8% return
In purchasing stocks, we follow NAIC's rigorous methodology: members prepare standard Stock Selection Guide (SSG) spreadsheets on the candidate stocks using Value Line data; completed SSGs are presented and discussed at a regular club meetings; buy decisions are based on a majority vote. Our current portfolio is broken down as follows:
By Sector
- Basic Materials 0%
- Capital Goods 0%
- Conglomerates 0%
- Consumer Cyclical 0%
- Consumer/Non-Cyclical 0%
- Energy 0%
- Financial 30%
- Healthcare 12%
- Services 22%
- Technology 12%
- Transportation 14%
- Utilities 0%
- Cash 10%
By Market Capitalization
- Large 47%
- Mid 34%
- Small 9%
- Cash 10%
BIG works like a mutual fund; members purchase BIG shares monthly at that month's current share price. We calculate this share price to reflect the current value of our underlying stock portfolio. Members are required to purchase a minimum of $35 of BIG shares monthly, but there is no maximum purchase limit. BIG invests any dividends it receives, so members do not typically receive intermediate cash payouts; members are paid the cash value of their BIG shares when they leave the club.
BIG club meetings are held monthly at member's homes, typically at 9:00am the second Saturday of each month. Meetings last between 2-3 hours, and consist of administrative discussions and stock presentations. An additional 1-3 hours of individual preparation is typically necessary prior to each meeting. We generally purchase a new stock holding every 3-4 months.
BIG membership is by invitation only. There is no lump sum contribution required to join. You must attend at least two club meetings as a guest before you can be considered for membership. The benefits of membership include:
- Learn how to perform detailed fundamendental analysis of equities. Be a stock analyst!
- Diversify by incorporating GARP investing into your portfolio
- Leverage BIG research analysis in your personal investments.
- Earn a competitive financial return on your invested capital.
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