Why it makes sense to invest with friends


With over-the-top movies like The Wolf of Wall Street and the Big Short, it’s easy to see why many people are intimidated by investing. What most people don’t realize is that you don’t have to work in finance to be a great investor. By keeping up with industry news and doing a bit of research, stock investing can be an exciting and rewarding side hustle. If you’re thinking about trading stocks, forming an investment club with friends could be a perfect way to get your financial future off to a flying start. Here’s our take on why it makes to invest with friends.

Fast Track Your Learning

While you don’t need to be a rocket scientist to understand investing, it does take some time to learn the ins and outs of stock markets and stock selection. This is where the combined resources of a group can be incredibly useful. Individuals who share the time-consuming legwork of researching potential investments can be of great value to the group as a whole. The vast amount of information gathered and the different perspectives and insights shared within the group are bound to provide a faster learning process than doing it alone.

Support Investment Decisions With A Broader Scope Of Research

While group investing is not a new concept, some companies are creating innovative ways to make the collaboration process easier and more efficient through investment club apps. It takes some searching to find the best investment app that works for you. Voleo allows users to research companies, stocks and ETFs, and to share any insight they gain with their peers. This type of social investing works in a similar way to a regular social network: it offers the ability to share information, but it’s focused solely on stock trading research for the investment club. In a world where we have access to more information than ever before, power in numbers can be very useful in getting timely and relevant content and research to add context to, and support, investment decision-making.

Reduce Your Investment Risk

One of the most significant benefits of participating in an investment club, whether you are new to investing or experienced, is that you are exposed to a larger amount of stock at lower personal risk. Having more money at your disposal to invest as a group means you get access to a wider range of shares, which diversifies your portfolio and lowers risk. Additionally, investments based on a broader understanding of the markets and guided by multiple perspectives lead to more rational and better informed decision-making, which also reduces investment risks. And because of the community nature of the investment club, you are also less likely to make rash decisions.

Do More With Less

There are many investment options that are just too costly for smaller investors. Individuals may find it hard to invest in large and profitable companies as single shares may cost thousands of dollars, effectively cutting out the small players. When individuals band together and pool their money, the cumulative capital opens up bigger, more profitable opportunities that wouldn’t be available to a single investor. Another advantage of investing with bigger numbers is lower transaction fees. At the end of the day, having a small slice of multiple investments, rather than individually pinning your hopes on the one or two investments you could afford on our own, puts you in a better position to benefit financially from your investment.

Gain The Knowledge Needed Before Starting An Individual Portfolio

The investing world is mysterious and daunting to many people, especially novice investors who are often hesitant to get involved for fear of losing their savings. An investment club can be an enjoyable, sociable and relatively inexpensive way to expand your financial literacy and learn how to invest successfully. When you join an investment club and start interacting with other investors, you gain access to sources of market information that can help you make better informed decisions about stock purchases when you do start to invest your own funds in a private portfolio.

Investing For A Good Cause

There are many types of investment clubs and each is formed with a specific goal or vision in mind. Some only deal with real estate or stock markets while others employ investment strategies such as swing trading. Investment clubs offer a platform for like-minded people to work together towards a unified mission, which is why it is such a great platform for individuals interested in social investing. Social Investing, also referred to as “mission investing” in the philanthropic world, means placing assets into companies that provide a societal or mission-related benefit in addition to a financial return. This “double bottom line” approach delivers positive results for people and additional funds to channel back into doing good.

Save Time By Collaborating

Time is money – it’s a valuable asset that few people seem to have enough of. By investing with friends, you can save time by assigning roles to each member. One, for example, can keep track of the money, others can research stocks, while tax and admin can be left to another member. By assigning specialized roles to individuals you can work synergistically together and streamline your efficiency to get more done in less time – a better alternative to doing all of these tasks yourself.

Conclusion

At the end of the day, there are many ways to invest. While there are pros and cons to an investment club it is a great vehicle for beginner investors to get a foot in the door, learn and grow as a team while having fun with like-minded people you trust. If you are looking for the best investment app to take advantage of the power of many and unlock your potential to achieve your wealth goals sooner, give the Voleo app a try.

By starting an investment club on the Voleo App, which is available for Android and iOS, you can get together with family, friends or colleagues to pool your money and share ideas, expand your financial literacy and make investing an enjoyable and rewarding experience.

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