Money Talks Demonstrates Investment Success

CEDAR RAPIDS - Pepsi has been good. So has McDonalds and Intel. TEVA, not so good.

Such are the ups and downs of investing in the stock market, especially when you've been doing it for three decades like Money Talks, a Cedar Rapids area women's investment club that first met in February, 1982.

"We started out this whole thing to learn about investing," says Mary Lou Selzer, 80, of Fairfax, "and we're still here 30 years later."

It celebrates the anniversary April 18 with the club picking up dinner at the Elks Lodge.

"You have to love it," says longtime president Carole Swanson, 73, of Cedar Rapids. "I love investing. I do it for our family. It's not so much work if you'd do this anyway."

Money Talks emerged from the local chapter of the American Association of University Women after a stockbroker's presentation.

"She did this investing," Mary Lou says. "We said, ‘Why don't we do this?'"

An initial group of 16 women formed Money Talks, incorporating under strict rules. Each member had to invest $20 per month, attend meetings regularly and actively participate in finding, researching and recommending stocks since every action requires a vote of members in attendance.

"We didn't want anyone just sitting around," Carole says. "Everybody is involved. I think that's part of the reason for our success."

After collecting $320 that first meeting, club members studied the stocks and made the first purchase - 30 shares of Public Service of Colorado utility at 14 1/8.

Eight years later the club's portfolio hit $50,000 and by March of 1995 it topped $100,000.

In early 2000, as the Dow Jones Average rose above 11,000, the portfolio reached $385,000. Then the bottom fell out.

"In the ‘90s the market was wonderful," Carole says. "It hasn't been wonderful since 2000."

Yet, in 30 years, the portfolio has returned an average annual return of 9.95 percent. It sits at $185,000 after payouts to 34 members who left the club, died or wanted their money for other uses such as taking a cruise.

The original bylaws didn't allow withdrawals, but now members can take out money in $1,000 increments. That's just one of many changes.

At first, missing three meetings a year (the club meets on the third Wednesday of each month in members' homes) was grounds for expulsion. Now you must attend at least five a year.

In addition, maximum membership increased from 16 to 20, the monthly ante went to $25 and investing is done online rather than through a stockbroker.

Also, new members must pay a $100 entry fee but can invest as much as they want up to the amount held by a charter member.

"We don't want a new member coming in and saying, ‘Ah, hah, I have more in the club than you do.'" Carole says.

A recent new member opted to put her money into the club rather than into a low-earning CD.

"She had great faith in us," Carole says with a laugh. "The jury is still out to see if that's a wise investment or not."

Buying McLeod at $14 a share and unloading it at 36 cents was worse than TEVA, down $2,500 after two years on a $12,000 investment.

But, successes have been many, from buying McDonalds at $5.75 and selling at $31.30 or Intel (bought at $8.75, sold at $61) or GE ($8.75 and $54).

But Pepsi, bought in 1987, is up $11,000, a resounding success for this generation of investors.