How FIT Keeps Its Portfolio Fit
Friday, November 21, 2008SUSIE GHARIB: Turmoil in the stock markets around the world has sent many investors to the sidelines. But one investment club near Chicago is taking advantage of the market downturn and is buying stocks. As Diane Eastabrook reports this men's only club has used friendship and fortitude to endure market moves for two decades.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: This monthly meeting of friends investing together known as FIT, begins with a reading of the treasurer's report. It reminds members how unkind the stock market has been recently. Just how does this investment club laugh off its losses? First, with camaraderie. Many in the group have known each other since they attended Chicago's Lane Tech High School 35 years ago. Second, with perspective. Five months after these value investors started FIT in May of 1987, the stock market crashed. Since then, they've watched the U.S. stock market seesaw through war, a terrorist attack and the dot-com bubble. To FIT, these were all great learning experiences.
JIM SCHIPP, FIT MEMBER: Today we can look at stocks that are down and hopefully buy them at the lower prices to give our portfolio a boost.
EASTABROOK: That became the mantra of this meeting. In August, FIT's portfolio reached a record high of $268,000. It has lost about 20 percent of its value since then. Still, the members have been adding money to the investment pool each month and are confident their holdings will rebound. What did you call the last couple of months? Would you call this a bump in the road or something more serious?
RAY GIESE, FIT MEMBER: Over a period of 20 years it's a bump in the road.
HUGH CALLALY, FIT PRESIDENT: It just amazes me how the market does these big swings, but if you go back and read the history it's slow and steady.
DAVE LEIDER, FIT MEMBER: As long as you're investing in good solid companies with good earnings, I don't see how you can lose.
EASTABROOK: Diane Eastabrook, NIGHTLY BUSINESS REPORT, Des Plaines, Illinois.
