Risky Business

The Circle of Wealth Investment Club has made a high-stakes investment in a pre-IPO firm

we were like most clubs; our investment philosophy was to buy and hold. Now, we are trying to get in early on companies that are on the rise,” he says, but concedes, “Had I been offered the same opportunity to invest in the pre-IPO after 9-11, I would have been more hesitant.”

The group, which started with each member contributing an initial investment of $600 and paying monthly dues of $100, is now focusing on building up cash reserves to buy new investments. It is also looking beyond the stock market, considering the purchase of a Coverall North America franchise, a commercial cleaning service that has been ranked by BLACK ENTERPRISE as one of the top franchises for African Americans. Says Andrews: “There is too much investment opportunity outside of the market not to take advantage of it.”

Circle of Wealth’s Top Five Holdings

Company Exchange/
Symbol
Portfolio
Weighting
Wall Street Radio.Net N/A 56%
Royal Gold Nasdaq: RGLD 12
Wendy’s International NYSE: WEN 10
Lucent Technologies NYSE: LU 6
Corning NYSE: GLW 5
*AS OF DEC. 3, 2002
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