Research Isn’t Rocket Science

2002, the club sold its shares of Nissan and trimmed its holdings of Southwest Airlines, Wal-Mart Stores, and Action Performance Cos.

But the market downturn hasn’t diminished the club’s passion for investing. “We buy almost all our stocks when they’re out of favor, and there’s nothing wrong with buying companies when they’re cheap. It is important for clubs to find a philosophy and stick with it, even if it sometimes doesn’t work out,” says Flowers. “You might have good companies in your portfolio that may drop below their true value, and when they do, it’s important to look at the fundamentals of the company. If it’s a good company, it will do well in the future.”