More financial journalists have been giving their top tips for shares on the London Stock Exchange during 2007. Here’s a list of their suggested buys :

Lucy Farndon : Royal Bank of Scotland.
Brian O’Connor : Ark Therapeutics.
Alex Brummer : Prudential.
James Ashdon : Vodafone.
Geoff Foster : Redstone.
Ian Lyall : Oakdene Homes.
Tamsin Brown : Rank.
Manfreda Cavazza : Tesco.
Karl West : ICI
Sam Fleming : Geiger Counter.

All of the above are from the Mail Group of newspapers.

In the UK, shares included in the FTSE 100 are around 5pc down on an April high. However, The Financial Mail is following a stategy that counters this trend:

The Dogs of the Footsie approach is based on a theory conceived by American fund manager Michael O’Higgins. We buy shares in the ten Footsie companies with the highest percentage yield — their predicted annual dividends divided by current share price.

Then, every three months or so, we check to see how the list of top ten yielders has changed. Companies might drop out because their share prices have risen or forecast dividends have been cut ; and they might move into the top ten if dividend forecasts have increased or their share prices have fallen.

We sell shares in the companies that drop out and reinvest that money equally in companies that have moved into the top ten.

In assessing the performance of our investments, we look only at share price. We do not take into account dividend income received.

Since the Mail’s portfolio was launched in 2001, the Footsie 100 has risen about 4pc, so an investment of 10,000 units would now be worth 10,400 units.

On the same basis, however, the Mail’s portfolio would be worth 17,493, a gain of almost 75pc.

It seems like Dogs really do run faster.

Not surprisingly, picking the shares to invest in is the most critical, and the hardest, decision any share club has to make. So how do you go about it?

Unless you are involved in day trading, which can have severe downside risks, you should invest for the long term. Over time, the stock market has proved to be a better investment than almost any other platform. So expect to tie your money up for three to five years.

Ensure you have ample funds for your needs plus the dealing costs involved. It’s generally agreed you should have enough money to buy at least five different stocks before you start dealing. This will spread the risks and hopefully prevent a meltdown in your fortunes.

Share clubs have a different psychology from individuals. They have a tendency to be more adventurous. Spreading risk is one important way of managing that tendency.

Barclays Stockbrokers equity strategist, Henk Potts, says, “Share clubs have an element of fun so you can be a bit more adventurous. In most cases members have other investments such as unit trusts and tracker funds.”

Barclays recommends share clubs go with oil, gas and mining companies, plus media and banking. Stayaways include, food producers and tobacco firms.

Online stockbrokers are usually much cheaper and convenient, with the average trade now costing less than £10 ($18.40). To start trading, the club should set up a nominee account in the club’s name.

The treasurer will handle the buying and selling of shares. Many brokers are friendly to share clubs and will help and advise them. These include Barclays, The Share Centre, Selftrade and others.

Now that we’ve looked at share clubs in general and how to set one up, today we’re going to get down to the nittygritty and cover the running of a club.

First off, you’ll need appropriate officers to specialize in the main tasks: every club needs a secretary, a chairman and a treasurer as a minimum requirement.

The treasurer’s role is probably the key one as they will have to keep up-to-date records of all purchases and transactions. In addition, they will record how much money there is to invest, who has paid what, and how much the share portfolio is worth.

Other members will need to research specific company areas, like banking, retailing, energy, technology, entertainment, and so on. Members who work in a sector, or have particular knowledge or interest, will be ideal for these sector jobs.

As well as requesting companies’ Reports and Accounts, the Internet is a great tool for research. Most companies nowadays have their own websites with special investor sections.

A system for share buying is also necessary. One member one vote is the best method as it precludes arguments. Members should put forward “picks” from their area of expertise, and the whole membership then votes on whether to buy the share.

Keeping the whole atmosphere amicable is the job of the chairman. The widest possible discussion and consultation makes that role easier to manage.

Next: 4. Picking your Shares.