Basics: Portfolio watching, first look

We’ve had a few days to watch what is happening to the stocks on our model portfolio. We pretended we had 10 shares of each of the five stocks we picked: CAT, COP, CVX, XOM and GWW. We also put in the DJIA just for comparison purposes. The total “investment” at the beginning of this exercise was $5,383.40.

So, what do we have?

The first two days were a sea of red – all stocks went down in price. This is a quirk of IFO’s stock picking. She’s seen it before. One reason for a trailing stop, BTW. But after a couple of up days, we see that we are a grand $49.80 ahead for the week and the total “portfolio” is now “worth” $5,433.20.

Symbol                  Price                         Change
CAT                       115.41                 +2.77    +2.46%
CVX                       109.44                +0.63   +0.58%
COP                         78.89                +1.44    +1.86%
XOM                       87.98                +0.64    +0.73%
GWW                    151.60                +0.76    +0.50%

DJIA                 12,810.54             +47.23   +0.37%
Portfolio            $5,433.20            +62.40      1.16%

Cumulative                                     +49.80      0.93%

NOTE: this does NOT include the commission/fee we would have had to pay had we actually bought the stocks. Most discount brokers charge the same amount no matter what the price of the stock or number of shares – usually about $7 to $12. At $7 per purchase, we would only be ahead $0.80 cents.

Also, note that the portfolio, which increased by $62.40, or 1.16%, beat the DOW today, which was up just 0.37%. The cumulative increase is only $49.80, because of that earlier “sea of red” in losses. The 10 shares of CAT were up a total of $27.70 today alone.

Wasn’t that fun? Remember, Psychology Rule Number One: anybody can make money in a rising market.

Now, here’s a little exercise for you to do on your own. Go to Yahoo! Finance and get the chart for the DOW – ^DJI and compare it to the Gold ETF, GLD. Now, look at the past two and five years of those.

Veddy interesting, no?


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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