Is doing an investment club with just 2 people worth it?

Question

My good friend and I plan on forming a general partnership and getting a joint business account. What do you think?

Answer 1

Sounds like more trouble than it's worth to me.

The reasons people form investment clubs are (1) to brainstorm investment ideas among a number of people and (2) to have a larger pool of money to invest. With only 2 people, these advantages aren't there.

Answer 2

It will probably cause more problems, risk of them (or you) stealing the money or being dishonest, difficulty calculating the tax, etc.

If you both have about the same amount of money, you're better off just both making the same trades separately.

Answer 3

in reponse to first person two people can do an investment club and have enough money between each other ....to really get the best value from an investment club it is mainly important to have a diversified group each person bringing a specialty to the table such as joe knows consumer goods market very well and bill follows oil and gas market and so forth the more diff opinions brought to the table the more u can learn