Investment Strategy

Wayne has been investing in the stock market for a number of years. He began while in college investing in penny stocks and call/put options. Very risky stuff. Sometimes he did very well. Other times he lost his shirt! However, his love for investing stuck with him over the years. Here are his thoughts on the subject of Investments...

Hicks Enterprises!

I have always been intrigued by the concept of using money to make money. During my college years I was very active in a number of multi-level marketing (or network marketing) ventures. I was an Amway distributor for a number of years. I also distributed diet supplements, long distance phone service, and magazines using network marketing. A high school buddy of mine (Willie Hixon) and I had big dreams. We formed WillWay Investments ["where there's a will there's a way!"] right after our high school graduation. Suffice to say that none of those big dreams hit pay dirt. However, one of the lasting benefits of that time in my life was the creation of Hicks Enterprises.

...Investment Clubs

Hicks Enterprises is an umbrella for a number of ventures. First, it is the place where a family investment club ('hui') was first created in September 1993. 'Hui' is a concept that I learned about in a book called "Letters To a Black Boy". Initially, our hui (family investment club) was going to be called Wicokrih. Charles, my brother, came up with that name. It was a combination of W(ayne) C(harles), K(yra), I(yisa) and H(icks). There were a few extra vowels thrown in for good measure! Charles was fresh from law school in July 1988 when he wrote me a letter with the name for the hui and proposed operating guidelines. I still have a copy of that letter if any of my immediate family members are interested!

It took another five years before we took steps to follow up on this idea. At that time we began a partnership which included the four children of Wayne & Elizabeth Hicks. Our initial investment was in a mutual fund. Over the years we've added investments in various stocks. Also, we've increased our hui membership to include other cousins. Our goal is to keep the hui membership limited to others in our generation. Our cousin LeBeau Kpadinou joined us in December 1994. Cousin Kim came on board in August 1995. Cousin Kelly made his first investment was in mid-1997. Joanne & Amber Jackson (cousins) heard about the opportunity and joined the hui in May 1998. Our family investment club continues to grow. However, we are currently closed to new investors until we ensure that the current members are comfortable with the process.

Currently we own shares in American Express, Coca-Cola, Gillette, Merck, and American Century Ultra. As of June 1999 our portfolio value was $13,449 with a total investment of only $6700. That means we had achieved over a 100% profit margin in our first few years of operation...or $6749 profits! Each month a financial statement is created and mailed out to the members of the hui. All members of the 'hui' have access to the password-protected section of this website by clicking here.

I'm involved in another on-line investment club. it is called the TenPercenter's Investment Club (TPIC)! Updated TPIC information will be provided here each month. TPIC members should e-mail Wayne for the password to this area of the website.

Many people ask me about investment clubs. My recommendation is that you check out the National Association of Investment Clubs (NAIC).

...Stocks & Mutual Funds

One of the aspects of stock ownership that I highly recommend is direct purchase from the company. Cut out the commissions for the stock broker. Buy directly from the company and reinvest the dividends in more stock! The Direct Purchase Plan Clearinghouse provides investors with complete and comprehensive information necessary to invest directly in some of the largest and most recognized companies. Click on their name above to go directly to their web site. From there you can access a menu of all the available plans and receive the prospectuses and enrollment forms for over 250 publically traded companies. All this, with no cost or obligation to the investor. Their phone number is (800) 523-7211.

...Entrepreneurial Thoughts

Shenita started her own business in 1997. It was a home-based business in which she sold long distance services (Excel). However, due to the demands of motherhood and her job she decided to discontinue her work on this venture.

We would like to provide opportunity for villagers (those of you visiting the Electronic Village) to order books online. Our preference would be to develop a relationship with an african american bookseller. However, until we can do that we are experimenting with Amazon.com, who is the largest online book & music seller in the world. Let us know what you think of this service.

...Mo' Money...Mo' Money!

I figure that i'll be using this particular part of the Electronic Village to discuss ideas about investments and other entrepreneurial ideas. i'll be adding links to related sites over time. Please feel free to e-mail Wayne Hicks with ideas or suggestions on ways to enhance this part of the Electronic Village. Do it now!!

Kathy Gaynor is the owner of a wonderful website that encourages you to "Click For Umoja". She recently recommended that our Villagers check out a wealth building website that shares information on conferences being held around the country designed to educate African Americans on building wealth.
Kathy also shared info on a website that encourages Economic empowerment for people of color on Wall Street and within our community.

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Updated: 4/26/2000