MONSTER PORTFOLIO 2011
Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97
Balance: End of Week 32 08/26/11
$2,333.12 Stock$82.88 Cash
Total $2,416.00
Since Inception: -8.19%
Back out cash inflow and we have a balance of $1,828.00.
My portfolio gained +6.38% vs. last week results. Not a bad bounce off the low’s! I wish I could smooth out the volatility, but it doesn’t appear I can do that with a couple of grand. For many of you that follow my blog my portfolio is wild. I own 3 individual companies of course it’s going to be volatile.
For those of you who are long term investors this portfolio isn’t for you. It's for those who would like to turn a little bit of money into something potentially larger in a short period of time. Long term investors should be investing completely different. Investing in index funds is a perfect way to come accustom to the stock market. The last month or so has been out of control, but I don’t want that to deter anyone from investing. If you are a person that can think long term, this short term volatility shouldn’t bother you one bit. I constantly hear people say I’m going to have to work another 20 years in order to retire. I lost a lot of money in the stock market and I can’t see the end in sight. Folks there is no evidence that this is true! The market will snap back! Human nature is to get down on yourself when things aren’t going your way. I have the same problem, but a few months later I’m back on the saddle looking for a way to make my money back sooner than later.
If anything I’m a great example of a person that can manage to weather the storm. I don’t know too many people that can withstand losing 20% in less than a month and still feel good about the stock market. I take the market downturn as a learning experience, but also as an opportunity to exploit the best situations for potential financial gain. You have to be active. When you’re losing money it’s easy to stick your head in the sand. You are not doing yourself any favors. Address the situation. Determine if your investments are still worth owning. If you come to the conclusion that there are better opportunities to make money elsewhere sell your investment immediately. If you continue to like your current investments, it’s a perfect time to buy more. Remember you are investing for your future.
My philosophy is when in doubt buy more. LOL! I have always made most of my money when stocks are out of favor and have lost a lot at the top. When I feel great about the stock market that is when I should be selling. Invest when others are scared and a majority of the time you will come out ahead. Even though my portfolio has fell back into the red I still believe investing in stocks is by far the best vehicle to create wealth over time.
Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)
