The Educational Investment Club is not only marking its 50th year of existence, but also has been named the top investment club in Iowa by BetterInvesting and Value Line.

Now if only the Central Iowa group could attract more young members. “New members are the lifeblood of any organization,” said long-time member Jim Vogel. “We haven’t had many new members lately, and that concerns me.” Vogel, 86, has been part of the club since joining in 1958.

The Educational Investment Club has 18 members – 13 men and five women – and several are in their 70s or 80s. “In the early 1990s, we had as many as 25 members,” Vogel said. “We had a waiting list.” The booming stock market had a lot to do with that. When stock prices began to crumble a few years ago, it affected the Des Moines club and those like it across the United States.

“Quite a few clubs have given up the ghost,” Vogel said, reporting that the number of clubs has dwindled from a high of 35,000 to fewer than 20,000 today.

“Our club almost failed,” he said. “At a meeting in 1977, our president was quitting and kind of suggesting that the club fold up. But I knew another club was disbanding, and we brought in a couple of their members.”

This is the second time the local group has been chosen No. 1 in Iowa; the selection is based on longevity, portfolio diversity and consistent returns as well as the results of individual stock purchases. “This time is more meaningful,” Vogel said. “The other time was in the go-go years, when there was more luck involved.”

For the 20-year period ending April 30, 2006, the club posted an annual return of 10.5 percent compared with the Standard & Poor’s 500 index return of 8.8 percent. In the one-year period ending April 30, the club had a 14.56 percent return compared with 13.9 percent for the S&P index. “At first, we didn’t beat the S&P,” Vogel said. “It took awhile to get there.”

Each club member contributes $40 per month and acquires a proportional number of units in the club’s holdings based on his or her total investment. In most cases, a stock purchase is approved after hearing no objection. But if it comes down to a serious vote, each member’s vote is weighted according to units owned.

The club currently has holdings worth about $300,000. Each member can withdraw part or all of his or her holdings at any time.

“Most of us don’t consider this as our major means of investment,” Vogel said. The reports presented at meetings serve as guidelines for members’ private investments as well.

The club owned stock in 21 companies at last report. About one-fourth can be described as large companies with stable growth, half are medium-sized and one-fourth are small and rapidly growing.

Some of the best performers include: Intel Corp., with a cost basis of $2,204 and a recent value of $12,804; Techne Corp., with a cost basis of $1,950 and a recent value of $16,764; and Johnson & Johnson, with a cost basis of $3,332 and a recent value of $20,220.

Anyone interested in joining the Educational Investment Club can contact Vogel at 276-5377 or JLPVogel@aol.com.