Monster Portfolio 2011 Week 33 Results

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. 

Clay-

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

"When in doubt buy more!"

Happy Father's Day! The Importance Of Investing, Saving, And Getting Out Of Debt.

First off I would like to say Happy Father's Day! 

Today I'm going to briefly talk about the importance of investing, saving, and staying out of debt.  This is somewhat off topic from stocks, but will be beneficial to your investing future.  Over the past couple of years you may have read about and seen people who are in financial trouble.  People who have lost their jobs, homes, and financially cannot support themselves.  The economy was crushed and the financial system has failed us.  This was and still is an ongoing disaster!  For many including myself this was a perfect wake up call.  Many of us live on the edge week in and week out.  We are a week out from financial disaster.  The saying living pay check to pay check is sad but true.  It doesn't have to be like this! 

The one thing to realize is that the only person that can help you is yourself.  I'm sorry to say at least for those people that are in there 20's and 30's that the government will not be there to help.  Social Security isn't properly funded and in my opinion will not be around by the time I retire.  This is another reason why investing for your future is so important. You have to want to be financially stable.  If this isn't that important to you then it won't happen.

The first step is to get out of debt.  Many of us have debt that include student loans, car loans, credit cards, and a mortgage to name a few.  Basically, were making other people rich by borrowing money and paying interest to them every month.  To me it's more of a headache than anything.  It's hard to get ahead financially when your trying to invest and at the same time you are paying interest to the banks.  You would have to have some pretty lucrative investments to generate a return that could cover the amount of interest you are paying on your loans and grow your investments.  So please pay off that debt.  You are robbing yourself of the good life!  I'm being robbed right now as well, but I have made it a priority to pay off the debt that I have so I can invest more money for my future.

Next would be saving money.  Having a savings account or what some people may call an emergency fund (For all those Dave Ramsey's Fans) is important to protect yourself from life's unexpected problems.  If you have built up a decent amount of savings say 3 to 6 months of your living expenses life wouldn't be as stressful.  If your car needed repairs, or your hot water heater decided to fail and ruin your floor in your utility room (this happened to me!) having savings would make these situations be more of a headache than a financial disaster.  Having cash on hand will protect you from having to go into debt to pay for what could easily be covered with a little savings.

Lastly,  you need to invest your money overtime for the future. Invest for your age and risk tolerance.  Invest as much as you can.  If its $5 a week or $100 its something.  Take advantage of your employer's 401K program and invest up to what your employer will match.  Usually the match is a percentage of your income, once you have met the full match put the rest in a Roth IRA or into a taxable investment account.  If your employer doesn't offer a 401K program open up a Roth IRA. 

I can't stress enough that just starting to improve these 3 key areas of your finances will help you drastically down the road.  Reduce debt, save money for an emergency, and invest like crazy!  When it's all said and done you should have a large amount invested and should be able to live comfortably off the interest your money generates for you.  Your hard earned money is working for you and your not giving it away to make others rich!  Plus who knows what the future will bring.  Our taxes may rise, health care costs will be higher as we get older, and of course there is inflation.  Start early and continue to play defense with your money and retirement should be a delight.

Thank You,

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com

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Occasional Stock Market Commentary during the week.
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Want To Invest For The Future? Try Mutual Funds

Today I want to cover a great way for an individual investor to put their money to work. That way is with Mutual Funds. What is a Mutual Fund? A Mutual Fund is commonly referred to as a diversified portfolio of various stocks, bonds, and cash. Mutual Funds usually are typically offered by a Financial Institution and are managed by a professional fund manager.

The great thing about Mutual Funds is that they offer an individual investor to have access to a diversified portfolio at a fraction of the cost. What this means is that a Mutual Fund is a pool of money from many investors. The fund manager that runs the fund chooses to invest the money to which they see fit. Many Mutual Funds consist of 100 or more stocks, but there are some funds that have less.

The first thing to consider when investing in a Mutual Fund is your age. This will determine what type of time horizon you have to invest and build wealth. This also will reflect what type of Mutual Fund you should be investing in. Not all Mutual Funds are created equal! Some funds have higher risk/reward than others and you as an individual must find that risk tolerance.

This is all I have for now as this topic will be covered over multiple posts. Next time I will explain more into detail of how age plays a factor in investing. Also, we will cover what to look for when choosing a mutual fund.

Thank You,

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower

It’s Never Too Late To Start Investing!

Today I want to talk about investing for the future.


Why do we invest? There are many reasons to invest your money. The most common reason that comes up in a conversation is Retirement. I’m here to tell you that investing for the future is essential. I here a significant amount of people in the media and everyday life stating they don’t have enough money to invest. Yes we all have certain financial obligations, but that isn’t a good enough reason to not save a little money for a rainy day.

The key to investing and saving for the future is to simply start. Starting is half the battle. Not starting could cost you 100’s of 1,000’s of $$$ down the road. Procrastination is not part of your future financial well being! It’s never too late to start!

The figures below are a few calculations I compiled to show what just a few dollars invested over a set period of time can turn into a substantial amount of money. This displays how long term investing really adds up.

Interest rates are hypothetical and are not guaranteed.


Age: 20
Monthly Contribution   /   Final Nest Egg:
$40                                                               $730,184.47
$80                                                               $1,460,368.93
$160                                                             $2,920,737.86
Invested (Yrs): 45
Retirement Age: 65  
Interest Rate: 12%      

Age: 30

Monthly Contribution   /   Final Nest Egg:
$40                                                               $232,062.30
$80                                                               $464,124.59
$160                                                             $928,249.18
Invested (Yrs): 35
Retirement Age: 65
Interest Rate: 12%

Age: 40

Monthly Contribution   /   Final Nest Egg:
$40                                                               $71,680.29
$80                                                               $143,360.58
$160                                                             $286,721.15
Invested (Yrs): 25
Retirement Age: 65
Interest Rate: 12%

Age: 50

Monthly Contribution   /   Final Nest Egg:
$40                                                               $20,041.57
$80                                                               $40,083.15
$160                                                             $80,166.30
Invested (Yrs): 15
Retirement Age: 65
Interest Rate: 12%

These numbers show how the magic of compound interest works to your advantage. You might ask, what is compound interest? Compound Interest means that each time interest is paid, it is added to or compounded into the principal and thereafter also earns interest. Definition pulled from http://www.extension.iastate.edu/agdm/wholefarm/html/c3-05.html
Calculations came from an investment calculator.  Feel free to input your numbers!
http://www.moneychimp.com/calculator/compound_interest_calculator.htm


This calculation above was part of the reason I started to invest 8 years ago. $40 a month is definitely obtainable for most. For instance $40 a month could be 1 trip to a nice restaurant, purchasing a drink and a bag of chips at work daily, or eating out for breakfast on a routine basis. Yes these examples may not pertain to you, but think real hard of what you might give up for a chance of financial freedom in retirement.

Remember it’s never too late to start investing!

Thank You,

Clay-

Have a Question?  Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday. 
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested?  Please become a follower

Nice Day For Stocks! Dow up +148.65 points to close at 10,896.91 (+1.38%)

Looks like we could be back on track.  The past week or so has been brutal.  I'm seeing a lot of money flow back into my favorites.  Keep an eye on my suggestions. These are the market leaders! The companies that drive the stock market higher!  Let's see if tomorrow we can keep the positive momentum going.  Happy Investing!

AAPL- Apple up +2.17% today
WFT- Weatherford International (I really like this one) I personally own this company! up +2.90%
INTC- Intel up +3.64 % today
GS- Goldman Sachs (These guys will shrug off the SEC probe) up +3.68% today
CAT- Caterpillar up +3.15% today

Thank You,

Clay-

If this was beneficial information or you would like to comment please do.  I would like to hear what you have to say.  Feedback Welcome!

Stock Market Volatility! My Take On Today's Stock Trading

    Well today was a wonderful day to all that had their money invested in the stock market.  The Dow Jones closed up 404.71 points or 3.90% coming in at 10,785.14 and the NASDAQ closed up 109.03 points to 2,374.67 up 4.81%.  Lastly, the S&P 500 came in at 1,159.73 up 48.85 points or 4.40% according to http://finance.yahoo.com/ 

    A great deal of the upside came from the EU rescue package of $1 Trillion to help save the Euro and settle investors of the European debt market.  This helps keep money flowing and also put the short sellers up against the wall.  Short sellers are people that bet against the market.  This in turn creates buying from the shorts to cover their position of betting against the market and sends stocks higher.  Don't get me wrong today was a great day to make money and take some profits, but the market is still very volatile and unpredictable in the short term.

In the near term I'm still very cautious about this market as I sold some stock into the strength of the market today.  I believe the market will move back lower in the near future at least in some of the individual stocks that I follow.  This will give me a better opportunity to buy at lower prices  Today was a perfect example of why I enjoy investing.  Investing can be fun and profitable at the same time. If your not having fun you must be doing something wrong!  Everyday is different and you have to take it in stride. 

Thank You,

Clay-

If this was beneficial information or you would like to comment please do.  I would like to hear what you have to say.  Feedback Welcome!