THE STOCK MARKET IS STILL OUR MOST ATTRACTIVE INVESTMENT OPTION
I am always at a loss as to why people with fairly long-term investment horizon will deliberately ch...
What is the AOE Investors' Club all about?
The AOE Investors’ Club is a collection of disciplined and long-term oriented investors who are using part of their present resources to take advantage of wonderful investment opportunities in the stock markets. The Club is set up to help our members invest their money intelligently in stocks; and our members are mostly disciplined and long-term oriented investors who desire safety of capital and a better than market averages rate of returns.
So, if you are like one of us-desirous of using part of your existing asset to create a better tomorrow (either for yourself or for your loved ones)-we invite you to join us; otherwise, we wish you good luck in your own endeavour.
1. Why did you form the club?
The stock market is probably the most profitable and attractive investment vehicle ever developed by man; and for most people, it is the investment vehicle of choice. When it comes to creating wealth, common stocks historically have been unequaled by any other investment alternatives including real estate and gold. Putting your money into stocks is far more profitable in the long-run than putting it into bonds, bank, real estate or money market account
But despite this overwhelming evidence of superior performance by stocks, most people still prefer to put their money in bonds and other fixed income investment instruments rather than stocks. The simple reason for this is that most people believe that investment in stocks is risky. While it is normal to be concerned about the risk of investing in stocks; at some point, this normal concern becomes irrational fears that prevent most investors from making appropriate investment choices. This is because the best way to handle risks including that of investing in stocks, is not to avoid it; but to manage it. We can do this by choosing a well-defined investment strategy like the one used in managing the AOE Equity Index that has the highest possible probability of success at the lowest level of risk needed to achieve our financial goal.
So, that’s why we set up the club to help as many investors as possible who will like to put some of their money in stocks to achieve safety of capital and a better than market averages rate of returns.
2. As a worker of average income can I join the club?
One of the reasons why I form the club was to help people with low income especially workers. One of the statistics out there is that only about 5 percents of workers will retire independently wealthy or be able to help themselves without government or family support. The reason for this is not necessarily because most workers are not earning enough income but because they refuse to save and invest part of their salary. So I said to myself, to those workers who are ready to save and invest part of their income, what can I do to help? Part of the answer is what led to the formation of the club with subscription and investment plan that is as low as $1,000 per annum. And this is also what informed the statement that you see at the bottom of most of our writings: The AOE Investors’ Club is a collection of disciplined and long-term oriented *investors who are using part of their present resources to take advantage of wonderful investment opportunities in the stock markets. And if you are like one of us-desirous of using part of your existing asset to create a better tomorrow (either for yourself or for your loved ones)-we invite you to join us; otherwise, we wish you good luck in your own endeavour. (*the word investor used to be worker)
3. Why should I join the AOE Investors' Club?
i. Most individual investors and even many professional investors will find it difficult to make the type of predictions and perform the level of analysis required to value and invest in businesses on their own. Investing in individual stocks without this ability is fraught with a lot of danger. By investing in the club or its recommendations, (investments and recommendations that had worked excellently well in the past) individual members would be able to invest in individual stocks and achieve excellent investment results with a high degree of safety.
ii. Investors put their money in stocks with the hope of earning a good rate of return. However, in most cases this expected outcome is never achieved. To overcome this setback, investors need a way to skew the odds of good returns in their favour. The Club offers members the opportunity to achieve better than market averages rate of returns while emphasizing minimization of risks and maximization of returns. The strategy used for providing the Club’s recommendations had produced 25% annualized rate of returns as against the 12% done by the market averages over a 20 years period; and there is no good reason to believe that this won’t be the case going forward.
4. What strategy is employed in managing the club assets?
i. Our approach to investing is based on the idea that even the best companies in the world sometimes go through periods of negative market sentiment even though they are still fundamentally sound. And when they do, their stock prices often fall below their fair values. This period of negative sentiment presents opportunity for a disciplined investor to make wise and profitable investments that are most likely to beat the market averages.
ii. In addition, our approach also recognizes that a good investment strategy is as much about minimizing risk as it is about maximizing returns. According to Warren Buffett, the first rule of investing is never to lose money and the second rule is never to forget rule number one. In the words of Philip Fisher, “the standard by which any investment should be judged is not just how much can be made from it if all goes well. Rather, it is how much can be made in relation to the amount of risk involved”. We take these principles to heart when making our recommendations or investments.
5. How do I join the club?
An individual can join the club in two ways. You can either be a subscriber to the Club or a direct investor in the Club. Subscribers are mostly people who want to benefit from the performance of the Club but do not want to surrender the management of their investment to the Club. Investors on the other hand are people who do not mind yielding part of the management of their investment to the club.
6. How safe is my investment in the club?
Your investment is absolutely very safe. However, it’s okay if you find it difficult to entrust us with your hard earn money. If you can’t trust us, you can simply be a subscriber to the club. We are aware that some people will have difficulty trusting a system like this; not especially with all the Ponzi Schemes we have all around. That’s why we offer the alternative of subscription so you can still benefit from the club while keeping your money under your control.
7. How risky is the strategy use in managing the club’s assets?
The strategy used in managing the AOE Equity Index has a relatively low risk when compared to the general market. The expectancy rate of the strategy is over 70 percent and whenever we are right, we make more gains than we lose in the few where we are wrong. That's not to say you won't have a couple of stocks that will lose money or become value trap, but the bulk will work out well if you stick with the strategy and maintain a long term focus. The stocks selections of the index work out 70-80% of the time within 2-3 years. When stocks tend to disappoint, the disappointment usually means smaller capital gains than you anticipated or a very small loss.
8. For how long has the club been in existence?
The club was officially launched on July 1, 2016. But the strategy on which the club was based was extensively tested over 20 years (1995-2014).
9. As a subscriber, how many stocks can I hold in my portfolio?
It all depends on you. But, to start with, you can constitute your portfolio with a minimum of 12 and a maximum of 24 stocks over a period of a year. If you can, we advised that you buy the two stocks recommended every month, which means you will have about 24 stocks in your portfolio at the end of a year. The AOE Equity Index actually holds up to 30-50 stocks some times.
10. Why 12-24 stocks? Does this not amount to over-diversification?
No. There are more than one ways to make money in the stock market. One way is to be very concentrated in stocks you know very well. And the other is to be right on average on many stocks. The strategy used in managing the AOE Equity Index is very good on average. So we're focused on the average return of the group of stocks and not on individual stocks. The more stocks in our portfolio, the more our portfolio's return is likely to mirror the strategy's claimed average performance figure.
11. Why does the club limits its yearly recommendations to 24 stocks when it actually holds up to 30-50 stocks in the AOE Equity Index?
First, we want to make it easy for as many people as possible to become members of the club and participate in stock market investments; since it’s not all members who will have enough capital to invest in large number of stocks, limiting the number of stocks to these manageable size should help. Second, with 12-24 stocks you would have gotten the required minimum number of stocks needed to achieve enough diversification by the strategy.
12. What is the minimum amount of capital I can start a portfolio with?
Well, we believe that the size of your portfolio should at least be $12,000. In other words, you should invest at least $1,000 in every month’s recommendations. Our recommended portfolio size is actually $24,000, $1,000 for each of the 24 stocks recommended per annum. This however doesn’t mean you have to save the entire $12,000 before you can start. With $1,000-$2,000 you can start while you build your portfolio to the required minimum.
13. Q: Can you invest my money for me?
Currently we accept clients’ money through the AOE Investment and Payment Plan (IPP). But if you have need for special arrangement outside the plan, you may get in touch with us.
14. What type of stocks does the club buys or recommends to subscribers?
While the universe of our recommendations includes small cap companies, our focus is on the well-established, medium to large capital-based companies. The reason for this in part is that, while small capital-based companies can offer the greatest possibility of gain, making at least an occasional investment mistake in this type of stock is inevitable even by the most skillful investor. When this occasional mistake is made, every fund put into this type of stocks can be lost. This is in contrast to investment in well-established, medium to large capital-based companies where any losses that might occur-usually from an unanticipated general market decline-should be temporary and easily reversible.
15. Where does the club pick its recommendations from?
In the pursuit of our mission- To help our members achieve safety of capital and a better than market averages rate of returns-we choose to recommend stocks from mostly developed economies (U.S. market for now) rather than emerging economies. In other words, we choose to invest principally in the developed countries of the world. The reason for this is that most emerging markets are quite unsafe and unstable. Investing in these markets in our opinion ignores the concept of margin of safety, and that is a risk we do not want you to take with your savings.
16. Can I see a sample of your recommendations?
Yes, of course.
17. Is your not living in the U.S. not going to affect your ability to do thorough research?
No. our method of investing does not required us to visit company’s management. Virtually all the information we need can be gotten from the company financials and the internet.
18. How do I get my money back?
As an investor, your capital and returns will be paid according to your investment plan. 10 percent of your returns will be paid at the end of the third year while another 20 percent will be paid at the end of the fourth year. The remaining 20 percent plus your invested capital will be paid at the end of the fifth year. Detail of your account or preferred means of payment will be requested as soon as payment is about to begin.
19. More questions?
Just send us an email at email@example.com and we will get back to you.
FREQUENTLY ASKED QUESTIONS ABOUT THE CLUB’S INVESTMENT AND PAYMENT PLAN (IPP)
Below are the basic information you need to know about the Club’s Investment and Payment Plan (IPP):
1. Is this not another Ponzi or Multi-level Network marketing scheme?
The Club’s Investment and Payment Plan (IPP) is not a Ponzi or Mult-level Network Marketing scheme: Our Investment and Payment Plan (IPP) differs from Ponzi scheme or multi-level network marketing in four ways:
i. You are never required to look for any down-liner, refer anybody to the club as a condition for getting your payment or sell anything to anybody. Your only obligation is to save and invest your money. And once you have done that, you have no further obligation to us. This is an exclusive online investment club.
ii. None of your money is ever trapped in our club: the club guaranteed that you will get 50 percent of the amount of whatever is invested in your investment plan over the next five years. None of your money will ever be trapped in the club. Even if you die, your money will be paid to your next of kin.
iii. Agreed, the club has a referral scheme. But you are never obligated to participate except you want to. The referral scheme is not a requirement for joining the club. If you so desire, you can help inform others about the benefits of joining the club and earn additional income; otherwise you are free not to participate in the referral program. Getting your returns does not depend on your referring somebody to us.
iv. You know how we make our money. The club’s money is invested in carefully selected quality companies listed on the U.S. stock market based on the AOE Equity Index. The Index is managed by a professional value investor; and the Index had performed excellently well in the past. (see past performance)
2. How long does it take to recover each year’s investment?
While you will start receiving payment from the third year, it takes five years to completely recover each year’s investment. Two years waiting period plus three years payment period.
3. How long does it take to recover all my investments from the scheme?
If you complete the five years investment circle, it will take nine years to recover all your investments. Payment will start by the third year of every five years investment circle; and you will recover all your invested money by the 9th year:
4. What is the maximum amount of time allowed for the completion of my five years investment plan?
The maximum time allowed for the completion of your investment plan is five years. If you want to benefit from the extra income, you must complete your chosen investment plan in five years and never be in arrears if you are to qualify for the extra income at the end of your payment plan. You can complete your chosen investment plan in less than five years but not more than five years.
5. Apart from my capital, is the guaranteed 50 percent return the only money I will ever receive from the scheme?
What you get could be more than the guaranteed 50 percent return. There are two types of payments. The first part is guaranteed and the second part is not. The 50 percent return of whatever is invested is what is guaranteed. The additional amount is not guaranteed and is only paid to those who completed their five years investment plan within the time allowed. Whatever you invest will be return with 50 percent profit to you over 5 years from the date of your first investment. What you get at the end of the payment period could be more than the 50 percent return of what you invested depending on the performance of our portfolio and whether you complete your investment plan in the allotted time.
6. What happens if the Club fails to pay the guaranteed 50 percent return within the stipulated time?
When we fail to pay the guaranteed 50 percent return on your investment as promised, we will pay the shortfall with interest: In a period where we fail to pay 50 percent return on your investment as promised, we will be obligated to pay the balance with interest at the minimum rate of 7.2% until the balance is paid off. In other words, if we fail to meet our obligation to you, we will not only get nothing, but will look for money to pay you your balance with interest.
7. What happens if I fail to complete my five years investment plan?
There is no financial penalty when you fail to complete your plan other than you not getting the extra income promised at the end of the payment plan: If you stop to invest at anytime within the five years, you will still get back your capital and the 50 percent return of whatever you have invested beginning from the third years from the first date of your investment, and the payment will be spread over the 2 years from the date of your first payment. But you will not qualify for the extra income that is distributed at the end of the payment plan.
8. Can I complete my investment plan in less than five years?
Yes. You can complete your plan in less than five years: An investor can complete his or her chosen plan in less than five years, and he/she will start to receive payment from the 3rd years from the date of the first investment. For example if you choose the $1,000 plan and you invested your whole $5,000 in one year, your $7,500 payment will start three years from the date of your investment and it will be paid over the next 2 years. Your entire investment and payment will last just 5 years instead of nine years.
9. Can I invest more than the minimum required in any given year?
Yes, you can be ahead of your investment plan by investing more than the minimum required by your plan in any given year: You can invest any amount within the five years, provided your investment is not lower than the minimum of your yearly chosen plan. The amount invested will be prorated equally into a minimum of five years. For example, if you chose the $1,000 plan and you invest your $5,000 as follows: first year $2,000; second year $3,000. The total amount will be prorated into five equal parts, which will equal the mandatory five years from your first investment, and then you will start to receive your yearly payment according to the $1,000 payment plan.
10. Why do I have to wait till three years
before receiving my first payment?
The three years waiting period is required as safeguard against down market: The three years waiting period is required for two reasons: first, to allow the investment to gather enough strength so as to be able to pay your capital and interest for the 5 years as detailed in your payment plan without any break or disappointment. Two, remember that we are investing in stocks. The stock market can be down sometimes up to 2-3 years. With three years gestation period, we will have enough time to recover hopefully all our losses from such down market.
11. What happens if I take time off from my investment plan?
When there is a Gap in your investment plan, you will not receive the extra income promised at the end of the payment plan: Once started, a year cannot pass without you investing your yearly minimum investment required, except if you want to stop or are ahead of your investment plan by a year’s investment. For example, if you are on $1,000 a year plan and in two years you have already invested $3,000, you can afford to take a year off your investment plan. You can resume investment a year after within your five years period and still qualify for the extra income. But if your investment falls behind, then you will not benefit from the extra income. Wherever you stopped in your investment plan, three years waiting period is required from the date of your first investment before your first payment begins. And your payment will be spread over the next 2 years.
12. What happens when I do my investment plan in lump sum?
You shorten the duration of your Investment and Payment Plan (IPP): If you choose the $1,000 plan and invest all your $5,000 in the first year for example, the payment of your $7,500 will start after the mandatory three years waiting period; and it will be paid over the remaining two years. Your Investment and Payment Plan (IPP) will last for five years instead of the normal 9 years. This only happens when you invest all your investment plan within one year.
13. What is the maximum amount guaranteed?
The maximum amount guaranteed is 50 percent return on whatever is invested in five years: The maximum amount guaranteed is the 50 percent return on the amount of the money invested. In addition to this maximum amount guaranteed, you will also have the opportunity to receive additional profit if you complete your investment plan within the allotted time and if the Club investment performance during the period of your investment is higher than the maximum amount guaranteed after all expenses. This second tranche of reward is not guaranteed because it depends on the performance of our investment which cannot be determined in advance. In other words, you could receive up to 50-100% of your investment over the 5 years if our investment performed to expectation; and if you complete your plan on schedule. But this extra is not guaranteed and is determined by the Club.
14. What and what could disqualify me from receiving the extra income at the end of the payment plan?
You will not qualify for the extra income if: 1) your investment falls behind schedule and the minimum of your chosen investment plan in any of the five years of investment. 2) If you fail to complete your investment plan within the time allowed. You should do whatever you can not to violate any of these rules that can disqualify you from receiving this extra income. The extra income is tantamount to receiving at once a substantial amount of the profit you have received piecemeal over the payment period. One way to avoid violation of these rules is by contributing more than the required minimum on time every year. That way, you can guard against falling behind your plan both in time and amount or not completing it. Not receiving the extra income is like throwing half of your profit away. In a good period this extra income could be as big as the guaranteed profit.
15. What is the minimum and maximum time my investment can ever stay in the club?
The number of years you stay invested is between 5-9 years: while you will start receiving payment from the third year, the minimum amount of time your investment can stay from investment to full payment is 5 years. The maximum is 9 years. At the end of the 5-9 years, you would have gotten all your guaranteed payment and the extra income promised
Further information: if you need additional information, please send your enquiry to us at firstname.lastname@example.org
Tel: +234 8023048151, 8036433945.
Address: 9 Fadeyi Aladura Street
Ikeja, Lagos Nigeria.
Surely it is a law of the Gods that unto him who kept and spent not a certain part of all his earnings shall gold come more easily. Likewise, him whose purse is empty does gold avoid”- George S. Clason
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