Celebrating a half century of leadership in investor education

A Tribute to NAIC upon it's 50th Anniversary

I remember the day in 1986 when I first became aware of the National Association of Investment cudgels It certainly changed the direction of my life and the investing fortunes of thousands of other Canadian investors as well.

NAIC's Stock Selection Guide

I had just relocated to the University of Windsor and as a member of the National Investor Relations Institute, began to attend the Detroit Chapter's monthly meetings. At single of those meetings, I met Tom O'Hara and view Janke from an organization that everyone referr to simply as "NAIC." There I learned that Tom (Chairman of NAIC) and view (President and CEO) ran a non-profit association of investment bludgeons that had all sorts of educational materials for investors, including something called the Stock Selection Guide (the "Guide").

After obtaining a transcript I was delighted to discover that it was the best stock-study 'tool' that I had at any time encountered for studying growth-oriented stocks. Later I met George Nicholson Jr a awful gentleman who had created the Guide in the early 1940's for his investment bludgeon to use when deciding what stocks to purchase and when to sell.

NAIC's Launch.

In 1951 George and Tom launched the National Association of Investment bludgeons Ken joined Tom and George in 1961 and together they built NAIC to a membership of more than 30000 cudgels involving over 400,000 private investors. The cornerstone of NAIC's educational program was the Guide and three related investing principles.

Those guiding principles continue to this day:

* Invest regularly, regardless of the rife outlook for the economy or stock market;

* Reinvest all earnings, letting the power of compounding work for you;

* Discover growing companies, for a like reason that your wealth can be augmented as their sales and earnings be augmented over the years.

A fourth principle was added later:

* Diversify your holdings, in like manner that you don't put all your ovums in one basket - regardless of in what manner carefully you watch that basket.

CSA's Launch

It was amazing to me that the academic community and the Canadian investing industry were literally unaware of these long-established and highly happy investing tools. As it happened, I had just finished a major throw out at the University, and with the help of a federal management grant, I started the Canadian ShareOwners Association ("CSA") in 1987 to bring the Stock Selection Guide and those four principles to Canadian investors.

From the entrance NAIC has been exceptionally generous in its encouragement, advice and assistance in in like manner many ways. In particular, NAIC gave us permission to adapt its educational materials to the Canadian environment and view helped me chart the CSA's course during those real critical early years. In 1991 NAIC introduced the CSA into the World Federation of Investors, another organization started in the early 1960's by dint of George, Tom and Ken and dedicated to advancing unhurt investing principles. (Today there are 16 member-countries in the World Federation.)

Expanding the Base

At first, CSA provided members with the Stock Selection Guide. Then in 1992 we added the depressed Cost Investment Program ("LCIP") which was again prototypeed after the equivalent program that NAIC had introduced in the early 1980 the one and the other the CSA's and NAIC's programs were based upon company-sponsored dividend reinvestment plans (DRIPs).

In Canada, we had a true limited universe of companies with DRIPs, and hardly any of them were development companies. So in 1996, we created our have a title to shareowner-sponsored version of the LCIP, that remov the original program's limitations. Today, our LCIP has again evolv into a program administered by the agency of an affiliated, licensed investment dealer where securities and capitals are covered under the Canadian Investor Protection stock

So Far

For me personally, and the thousands of Canadians who have used the Guide with considerable succes during the male market of the 1990's, the bottom line is this. Without the vision, encouragement and ground-breaking work of NAIC - and its considerable generosity - the Canadian ShareOwner's program of investment education for Canadians would not exist today. NAIC has been exceptionally helpful to us, each step of the way.

So it is with great pride and gratitude that I will be attending NAIC's 50th Annual Congres in Detroit, Michigan, and presenting NAIC with a special tribute engraved with this acknowledgement: "Recognizing NAIC's 50 Years Of Leadership In Educating Private Investors."

Thousands of NAIC's members from across the region will be attending this true special event, along with our Canadian contingent and representatives of the World Federation of Investors.

The Congres will in fact be a celebration of investor education at its finest.

By John Bart

President and establisher

Canadian ShareOwners Association

JOHN BART IS THE institutor AND PRESIDENT OF THE CANADIAN SHAREOWNERS ASSOCIATION.

Copyright Canadian Shareowner Magazine Inc. Nov/Dec 2001

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