The talk around the table Aug. 16 sounded knowledgable enough. Apple was doing well, but the prevailing consensus is that its overvalued. Costco has also been strong, but a lawsuit from Tiffany & Co. was something to watch. Netflix had also been a good buy, but Disney announcing it would create its own streaming service could hurt the price.

The discussion was happening far from any stockbroker's office, in a conference room at Friends In Deed. Seven people gathered for the monthly meeting of the Profit Investment Group, a small group of Green Valley residents who jointly invest in the stock market. While all knew next-to-nothing about the market when they started, everyone said they have found the experience educational, not to mention profitable.

Each club member is charged with following one of their stocks and preparing a report on how it has done in the past 30 days and what experts say about its health going forward. The group currently owns stock in seven companies, from Apple to Yum! (the parent company of Pizza Hut, Taco Bell and KFC). Part of the discussion centered on diversifying and looking at financial companies such as Visa or American Express.

After a thorough reporting of their portfolio, the club decides by vote count whether to buy more stocks, sell what they have or hold for another month. At its August meeting, they decided to sit tight for another month and re-evaluate whether they need to shake up their investments. That month-to-month rhythm is the normal routine, but, in case of swifter developments in the market, an emergency group including the president, vice president and secretary can meet to respond more immediately.

All members pay a minimum of $25 a month to invest, though if 20 percent of the club's money is coming from one person, that person cannot give any more. New members must attend three meetings before they are allowed to start kicking in their own money. While they once had 20 members, today they are at seven.

Dave Armstrong, the club's president and a member since 1999, said that while stocks have fluctuated, not a single members has ever lost money investing with the club. Everyone has received a 100 to 200 percent return. Even the market downturn in 2008-9 didn't affect their bottom line, he said. Their stocks performed normally and without problem.

One of the only downsides is when someone has to leave the club. The club needs to sell stock to return their investment, which means potentially getting hit with capital gains taxes.

Armstrong is one of the more seasoned members of the group now, but when he started his only experience with the market was the employee shares from General Foods during his working years.

And while the financial gains are nice, Armstrong said he views the club as a non-threatening way to expose oneself to the stock market. The stakes are generally low and the group has been successful.

Nobody has their life savings in the club, he said.

Graham Kidde has been a member for less than two years, having heard about the club through a neighbor while poolside one day. He used to have a stockbroker and an account for his wife, but it was the club that gave him an in-depth view on how to evaluate stocks. That's what he likes he now knows how to more objectively pick a company that will return good dividends.

They are very thorough about their evaluations and don't make knee-jerk reactions, Kidde said.

That's not to say there haven't been missteps. In March, the club looked at investing in PayPal, with the stock at $42. It had dropped recently and the members decided to wait until it reached $41 before buying. Except it went up. And up again. Eventually, they pulled the trigger at buying it but at $58 a share.

Years ago the group also bought shares in Harley-Davidson, but sold them quickly after two months. Shortly thereafter the stock shot up, leaving the members kicking themselves. The rule now is that the club must hold onto a stock for three months before they can sell it.

Ellen Besse has been a member since 2007. She decided that she should learn about the stock market shortly after retiring as a librarian. She was part of a similar organization in her native Indiana, but with one key difference it was all women. That group had been very conservative, willing to sell stocks at the first sign of trouble. The mixed group here is a little more daring and willing to take more risks, she said.

It doesn't matter, she said, that they all started and in many ways still are stock market neophytes. In fact, active stock brokers aren't allow to join, though Armstrong points out that none has ever applied.

Besse said that's the whole point. The group is intentionally a gathering of novices gaining experience through trial and error.

Everyone in the stock market can't be Warren Buffet, she said.

David Rookhuyzen | 547-9728

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On the money: Local investment group sends novices into the market - Green Valley News