Posted by: investmentclub | October 23, 2007

IC Agenda 10/24

We have an exciting week planned with the start of the virtual stock competition, as well as a discussion on technical and fundamental analysis.


  • Zecco (Tommy)
  • Fundraiser
  • Meeting 31st canceled

“What’s in the News” (Jenny)
Walk to AGSM
What to look for (when picking stocks)

  • Technical and Fundamental analysis

Register account –

  • Pick at least one investment
Posted by: investmentclub | October 18, 2007


Hey, i though I would let everyone know about Zecco. I have a trading account here as well as at thinkorswim. However Zecco is great for you beginners because there are no account minimums and you get a ton of free trades every month.

For those of you who already have trading accounts, you can still get a Zecco account for free and join the new ZeccoShare, its like myspace only for investors. I just got the email about it, and its still in beta, but you can have them add you to the waiting list. Here is some information they sent me on it:

ZeccoShare, the revolutionary social investing network at Zecco, is now open to all 70,000 community members, and anyone else who wishes to join. Investors can create a profile and begin using ZeccoShare to tap into the power of social networking for their investment decisions. All for free. Get started now by activating your profile.

The power of ZeccoShare is its transparency. The Zecco blogs and forums already let investors debate and share investing ideas. Now, users can elect to have their actual investment behavior verified, which ads credibility. At the same time, you and your personal information remain anonymous, so that your private affairs stay private.

Happy investing,

Tommy Fountain

Posted by: investmentclub | October 11, 2007

Previous Meetings

Guest Speaker: Kit MacNee

Merrill Lynch – Financial Advisor

Presentation Summary
Kit MacNee: conservative by nature

Best news source: NPR radio. Not conservative.

  • Covers more than the headlines

Real Estate today:

  • Realtors: hurting, cannot get the money from Banks
  • No money = no activity
  • Construction business: down. People cannot afford repairs.
  • All this means it’ll be hard for us to land a job

Real estate: huge

  • Will touch each of our lives
  • San Bernardino and Riverside = down over 50% in both counties
  • Kit: has not been able to refinance her home for 3 years

What is it like working as a financial advisor?

  • Kit loves it
  • Makes a difference in people’s live
  • Helps people manage their money
  • Exciting to work with people who want to make their dreams come true
  • Gets to use all the knowledge from college, state planning field, community service,
  • Takes a lot of time
  • 3-5 year time: busy building the business and cash flow isn’t there yet (scary)
  • Important: if you want to be a financial advisor – you make it happen. No one else. People rotate between firms all the time.
  • You want to be with people who stick
  • Every financial group has a different style
  • We’re all different: diff knowledge, personality
  • Financial advisors pick and choose their clients (Kit picks friends)
  • Expect to work 60-70 hrs a week

What products does Merrill Lynch offer?

  • if someone came and wanted to bring a business public – Kit can make it happen
  • help parents save for their kids
  • Kit’s main client focus: working with women so that they may be financially independent
    • women (young and old): don’t like to deal with money but they have to because of their longevity
  • managing non-profit org. cash flow
  • client annual income range: 40k, 15k, some have 250k assets to give,
  • Kit philosophy: help all, you never know where your client will take you (network)
  • Strategy is big
  • The more money you have, the cheaper it is to invest
  • More money = more options open to you
  • Feed based account = agreed upon fee (generally 1%) Why? Better customer service.

E-trade: Kit cannot beat their prices

  • No less quality than Merrill Lynch
  • Yahoo finance: ton of info
  • If you don’t understand go to
  • Buying individual security
  • If you want to set aside a little bit of money: try Mutual Fund (fidelity, American funds, franklin fund) -> they do a little bit of everything but very very well.
  • C-shares: no cost up front
    • After one year: sell it and move on at no cost
  • A:
  • B shares – need to stay in it for a long time. Not flexible.
  • ING – you can register online at ~5%
    • Best rates for very small dollar amount start
    • Helps you save because it takes a while to get at it
  • Long term savings: makes sure where you work has a 41K plan
    • Big at our age
    • Goal: retire at 75 (kit)
    • For seniors: expenses go up not down
    • People assume expenses remain the same when we retire
    • 23 year old: putting aside $100/month
      • You would be able to save $24 million
      • Gives 320-400,000 to expense a year
    • Wait until you’re 30 to put aside $100/ month
      • Be able to save $3.5 mill
    • Wait until you’re 47 year old
      • Cannot even make 2.5 mill (maybe 2 mill)
    • You don’t want to have to withdraw 5% (50K if it’s 1 mill) => not a lot
    • Recommended Book: the Automatic Millionaire
      • Talks about how:
        • You need to make saving automatic: pay yourself first
        • The Latte effect: we all have something that we buy a lot of that we don’t necessarily need
    • Thought for the day: Richard Bernstein
      • ML economists is a bit more pessimistic
      • However, good at predicting the economy
    • Kit: a fiduciary for people
    • Warren Buffett:
      • Investment genius
      • Selling everything he owns in China
      • Better to sell near the top than near the bottom
    • Be careful with the middle market (Bubbles- a poor way to build wealth)
    • Buy large cap stocks- Cisco, Kellogs, Johnson & Johnson: all large multi-national organizations that already pay dividends
    • Long term investing: take a LT time horizon.
      • Watch news, listen to the world, develop good tactics
      • Staples good: why? People still need to eat, buy insurance, gas, etc
    • First baby boomer applied for soc. Sec (48 million baby boomer)
      • Everything the BB has touched, they have changed
      • Caused rock n’ Roll, hippies, tech boom, philanthropy
      • Now, they need health care
      • Yuppies are the new BB
    • Big Sector: Info. System
      • Since the late 90s: IS hasn’t changed too much

What can college students do to improve their finance?

  • Don’t get into credit card debt
  • Buy real estate: land, condo, house
  • In 84’: 11 ¾%
  • Buy cars used: try not to get a car loan. Aim: no car payments
  • The only resource we are given that we cannot get more of is time.
  • Cars never go up in value
  • Start Individual retirement account ( even if it’s $1 a month)
  • Live within your means
    • Greatest example: look up to the people who survived the Great Depression
    • You can have it all, but not all at the same time
    • Don’t try to live beyond your means – it won’t bring you long term happiness

Which class did you find most helpful?

1) A poli-sci course about energy

  • 7 sisters
  • OPEC countries
  • Global economics
  • Colonialism

2) Finance Class

  • focused on case studies
  • studied real businesses (i.e.: Bene Hana)

3) Accounting

– Kit can look at a financial statement and can find problems quickly

– You will eventually need to make or oversee someone’s budget no matter where you work
Words of Wisdom

The truly wealthy and successful made their own businesses


-people who are really wealthy are self employed

Enjoy life!

  • Kit, “Best decision I ever made was to stay at home for 13 years”
    • Learned how to play, be a person
    • All valuable lessons that can be carried forward

2nd General Meeting (10/17/07)

Officers Present: Tai, Laura, Ling, Annie, Jenny,

Officers Absent: Tommy, Tigist

Members Present: 44 Members present (See attendance sheet)

Old News:

  1. Stalla Representative Position
    1. Position is still open
    2. Please see Laura for more information
  1. Village Wok Fundraiser
    1. Proceeds are still being calculated

New News:

  1. What’s in the News?
    1. Current events given by Jenny Ngov
  1. Merrill Lynch
    1. Guest speaker: Mary “Kit” MacNee (Financial Advisor)
    2. Summary of presentation will be posted on the IC website and emailed


1st General Meeting (10/10/07)

Officers Present: Tai, Laura, Ling, Annie, Jenny, Tommy, Tigist

Members Present: 31 Members present (See attendance sheet)

New News:
1. Stalla Representative Position Open

  • This position is open to all members
  • Position is highly recommended for those who plan on taking the CFA exam

2. What’s in the News?

  • IC will be implementing this new program starting next week
  • At the beginning of each meeting, someone will be presenting current events that effect all investors

3. SEO Internship Opportunity

  • Rep: Rory Meyers
  • 10-week summer program
  • For more information email Rory at
  • SEO will have a booth open at Meet the Firms (10/11/07 at UCR extension center)

4. Global Business Brigades

  • International internship/ volunteer opportunity
  • A chance to provide business solutions to micro-enterprises in rural villages
  • Current focus: Honduras
  • Program is established in UCLA, Stanford, and Harvard
  • If interested, contact Chi Nkwenti at or at 310-256-9255

5. Merrill Lynch

  • We will have a guest speaker from Merrill Lynch next week
  • Please come prepared with questions, resume, and business attire if you wish to pursue a career with Merrill Lynch

6. Fundraiser

  • Village Wok
  • Sunday, Oct 14, 2007
  • 4:00-8:00 p.m.
  • 10% discount (15% of proceeds will go to IC)