Meeting of the minds: here are some helpful hints on how to run your monthly meetings effectively and smoothly.

Your investment club is a business and should be run like one. Anyone who thinks that belonging to an investment club is merely about paying dues and showing up for a meeting now and then is in for a rude awakening. Investment clubs are not passive organizations, and there's no room for slouches. Everyone has a role to play.

A successful club requires skillful organization and planning. It should meet regularly, at least once a month. The location may change--rotating between members' homes--but the day should be consistent. For example, try to meet every second or third Saturday of the month.

"It's no coincidence that clubs that hold well-run, organized meetings generally enjoy superior investment results," says Thomas E. O'Hara, chairman of the National Association of Investors Corp. in Madison Heights, Michigan. The NAIC has a video that runs through how to conduct a model club meeting. Here are some general club meeting tips:

Start on time and be prompt. The president or vice president should call the meeting to order at the appointed hour. The meeting should last as long as is necessary to cover all essential business. Ideally, it shouldn't take more than two hours.

Set an agend. Every meeting should have a game plan presented by the president. Old and new business should be part of the agenda. The secretary should read the minutes from each previous meeting. If the NAIC council representative is present, he or she can update members on upcoming council meetings or conventions. The treasurer should review the dub's portfolio, and give highlights of discussions with the broker, particularly concerning securities the club has already purchased.

Present stock analyses and recommendations. Each member should be responsible for researching a stock. (Clubs that have more than 10 members may want to appoint a stock selection committee). Each member should report his or her findings: whether the stock is a candidate for purchase, hold or sale. Pertinent information, such as copies of the NAIC's stock comparison guide, should be disseminated among members.

Voting on stocks. There should be an open floor or discussion of stock choices. Club members should vote after a motion is made by the president or vice president. There could be more than f one decision with regard to buying one or more r stocks or selling current holdings. But you don't have to decide on any given stock right away. If you need more information or time to decide, you could vote again at the next meeting.

Call for next meeting. The president should ask for suggestions for new companies or industries to be considered at the next meeting, and make assignments for the following month's presentations.

There's nothing wrong with having a little fun or socializing at meetings, but it should be done after the formal meeting is over. Then, you can turn your attention to refreshments and casual conversations.

Bear in mind that you may want to keep a waiting list of prospective club members. You should always have replacements on hand when a member leaves the group--and eventually, someone will depart So, occasionally invite guests to meetings.

Down the road, you may find that your meetings are too predictable. To liven things up, invite guest speakers to address the group. You could call on local bank executives, financial planners or even financial writers in your area. Assign one of the members to seek out such people.

The NAIC has created a number of tools to help you evaluate a potential company's value and stay current on stocks that you own. The simplest NAIC form is the Stock Check list, which enables you to record and review a company's earnings and sales record and price history. The Stock Selection Guide and Report is a little more sophisticated, and shouldn't be used until your dub is at least six months old.

The Stock Selection Guide and Report comprises five sections. The first lets you record sales, earnings and price performance over the last 10 years. With the second section, you can look at the company's management team, and evaluate it based on sales, earnings per share, pre-tax profit margin and return on shareholders' equity. In the third section, you can record last year's high and low prices, earnings per share, high and low price/earnings ratios, dividend payout and yield figures. Section four allows you to adjust these figures and estimate future price movement. The final section is used to gauge ongoing results.

Another NAIC tool is the Stock Comparison Guide, which helps you compare and contrast data on the different companies you're considering for investment. Essentially, it guides you through three areas: growth, management and price comparisons. The Portfolio Management Guide and the Portfolio Evaluation Review Technique are designed to help you stay current on the stock you already own. The former is essentially a chart that compares monthly P/E ratios. The latter is a worksheet that compares quarterly and annual changes in earnings per share and P/E ratios.

Next month, BE will focus on managing your funds and recordkeeping for tax purposes.

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Charles Self III, senior vice president of La Salle Capital Management Ltd. (312-220-7598), says inflation-indexed bonds are worth a look if you're in the market for steady returns on a fixed-income investment. Although the interest rate on the first 10-year notes to be auctioned in January was expected to be 3%-3.5%, the bonds make up for the lack of yield by slating their principal value to increase with the consumer price index. With an inflation-indexed bond investment of $1,000, a 2% consumer price-index increase would boost the maturity value of your holding to $1,020.

Self recommends these bonds for investors with a long time horizon--say, 10 years or so to retirement--and no pressure to significantly beat inflation that might go along with investing for college tuition. "Since the bonds will have a higher inflation-adjusted return than regular bonds or money market funds have earned historically," he notes, "they may be used as a substitute for stocks when the equity market looks expensive."

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