National Association of Investors Corp. (NAIC)

National Association of Investors Corp. (NAIC / BetterInvesting)

Key takeaways
* The National Association of Investors Corp. (NAIC), publicly known as BetterInvesting, is a U.S. nonprofit focused on investor education and long‑term individual investing.
* Founded in 1951 and based in Michigan, NAIC supports investment clubs and individual investors with training, analysis tools, and publications.
* Its investing approach emphasizes regular investing, reinvestment of earnings, growth companies, and diversification. The Stock Selection Guide (SSG) is the organization’s core evaluation tool.

What NAIC / BetterInvesting is
The National Association of Investors Corp. is a 501(c)(3) nonprofit organization dedicated to teaching individuals how to become successful long‑term investors. Operating under the BetterInvesting brand, the association serves both investment clubs and individual members and provides education, analytical tools, and community support.

History and mission
* Founded in 1951 by a group of investment clubs, the organization originally operated as the National Association of Investment Clubs.
* The member magazine was titled BetterInvesting and the name became the association’s public brand in 2004.
* The mission is to promote the benefits of long‑term stock investing and, more recently, to include education on stock and bond mutual funds and retirement plan investing.

Membership and resources
NAIC is organized around local clubs and individual memberships. Typical resources and member benefits include:
* Online tools to evaluate a company’s quality and price potential
* Educational webinars and training events
* Community‑contributed stock studies (“First Cut” analyses)
* Digital and print editions of BetterInvesting magazine
* Local chapter support and club resources

Core investing principles
NAIC promotes four principles for long‑term investing:
1. Invest regularly, regardless of market conditions.
2. Reinvest all earnings.
3. Invest in growth companies (and growth mutual funds).
4. Diversify to reduce risk.

The emphasis is on identifying well‑managed growth companies that can generate above‑average returns over time.

The Stock Selection Guide (SSG)
The Stock Selection Guide is NAIC’s primary stock evaluation tool. Created by George A. Nicholson and used since the organization’s early years, the SSG is a two‑page form with a semi‑log front graph and summary data designed to answer two central questions:
* Is this a well‑managed company?
* Is the stock selling at a reasonable price?

Typical SSG contents:
* 10‑year sales and earnings‑per‑share history
* Pretax profit margins and return on equity
* Five‑year annual high and low price‑earnings ratios
* Other financial and valuation metrics relevant to assessing quality and price

Adapting to modern investing
As defined‑contribution retirement plans such as 401(k)s became widespread, NAIC added education about mutual funds and retirement account investing to its curriculum while maintaining its focus on long‑term stock investing.

How to get involved
Individuals can join local investment clubs or become individual members of BetterInvesting to access tools, training, and local chapter support. The organization’s resources are geared toward hands‑on learning and community‑based investing education.

Conclusion
NAIC / BetterInvesting is a long‑standing nonprofit dedicated to practical investor education. Its structured approach—centering on regular investing, reinvestment, growth company selection, diversification, and the Stock Selection Guide—aims to create disciplined, informed long‑term investors.