About Ermyn Investment Club
The main purpose of the EIC is to try to make money from investing in shares.
However, there are also two other key objectives:-
1) To Have Fun
The relatively small amounts being invested and the shared nature of the exposure mean that the EIC will seek to invest in shares which probably none of its members would want to invest in individually because they will be more speculative in nature.
This means, in practice that, when selecting shares, long term growth will not be a prime consideration. Factors which may lead to appreciable short term growth will be regarded as being far more important e.g. asset sell-offs, possible takeover, exploration activity - by their nature, these factors cause a share to be higher risk.
In general, the EIC will not invest in shares which it expects to have to hold on to for longer than six months. At purchase, a clear exit strategy will be agreed which will try to cover both potential gain and loss positions - this strategy may be (and almost certainly should be) regularly updated.
An EIC share should be expected to generate some interest and/or excitement!
2) To Learn
Half of the membership is new to investing in shares and all of the members are new to investing in speculative shares. By observing the market, reading about it, analysing and discussing it, all EIC members hope to learn more and gain experience which will help them in their own individual investment decisions.