African Americans and Investment Clubs
Relative poverty and limited political influence of the African American Community is closely
associated with its limited possession of wealth, i.e. of business and financial assets as well as
human capital. The African American middle-class is barely more likely to buy financial
instruments like stocks as compared to the working-class white ethnics determined to upgrade
their social status.
The discrepancies in investments between whites and African Americans may in large part
because the African American middle-class is comparatively young and has enjoyed wealth for
only a short time. For psycho-historical reasons, African Americans have developed different
spending models. The rudimentary reasons for incongruity might be lack of strong interests in
long-term investments and lack of expertise with investment procedures and instruments.
Likewise, African Americans have low political influence in the United States as compared to
other ethnic groups. Most of the community still believes that the American economy will
provide them with increasing income from salaries and wages. This is not true at all. One way
the community can increase their wealth and financial literacy is by joining an investment club.
Typically, an investment club consists of 15–20 persons, most often comprised of members of
the family, friends, relatives, and or individuals from all occupations meeting regularly to learn
investment values, principles, and securities (a combination of EFTs, stocks, and mutual funds).
At Black Wallstreeter Consultation Services, we help you start an investment club where you can
invest monthly sums in common stocks, ETFs and mutual funds despite general market
conditions. This helps in obtaining lower average costs. Also, reinvest dividends and capital
gains that is earned directly. Your money increases faster if incomes are reinvested. This is the
eighth natural wonder in effect known as compound income. In general, many companies’ sales
are increasing faster than industry. Hence, being a member of an investment club, you can take
advantage of this growth.
Regardless of the fact that most members of an investment club might be considered amateurs
among money managers, the general performance of the stocks that clubs select is great when
compared to some brokers. We encourage all clubs to strive for growth and regular investing.
Black Wallstreeter Consultation Services provides club guidelines, tools, and readings. We also
have tips and educational agenda for your club.
In a nutshell, starting an investment club might be a “scary” thing to do for some African
American investors. However, Black Wallstreeter Consultation Services will provide you with
the necessary resources to assist with starting your investment club and keep it up and running
smoothly. After all, our motto is “building wealth through investment clubs.”