Basics: Watching your model portfolio

In addition to all the other stuff you are cramming into your brain as you contemplate buying stock in a company, here’s a quick and easy way to get a picture. In spite of her wordsmithing proclivities, IFO actually prefers charts or pictures.

So, take a look at your model portfolio. IFO has picked five stocks for hers: CAT, CVX, COP, XOM and and GWW. CAT is a worldwide heavy equipment maker. The next three are all oil companies.

The last one is Grainger, which distributes material handling equipment, safety and security supplies, lighting and electrical products, power and hand tools, pumps and plumbing supplies, cleaning and maintenance supplies, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, and various aftermarket components; and provides inventory management and energy efficiency services. Whew! Complicated.

Now, click on any one of those companies listed in your portfolio. Get prices for a two-year timeline. Then, in the “Compare” box, put the other four companies. In IFO’s portfolio, one company jumps out big time.

She has done this exercise many times with her “real” portfolio as well as with companies she is considering adding to it. This is just one more arrow in your quiver of ammunition for evaluating stocks.


About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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