Investment Principles
The organization stresses four principles for successful, long-term investing. The last principle was added and emphasize in the 1980s and '90s. These principles are: 1) invest regularly, regardless of market conditions; 2) re-invest all earnings; 3) invest in growth companies (and growth mutual funds); and 4) diversify to reduce risk. The heart of the NAIC approach to investing is the third principle -- investing in growth companies. The primary tool to evaluate common stocks is a two-page form with a semi-log graph on the front called the Stock Selection Guide (SSG). The SSG dates to the founding of the organization and was created by George A. Nicholson.
In the 1990s, NAIC started analyzing mutual funds when more of its members requested information on how to select the best mutual funds for their self-directed retirement accounts. The form to analyze mutual funds uses the same concepts as the SSG but without the semi-log graph.
Many members join because they were exposed to NAIC though their investment club. In fact, the original name of NAIC meant National Association of Investment Clubs. Currently one can join NAIC as an individual, whether or not one is a member of an investment club.
Read more about this topic: National Association Of Investors Corporation
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