IFO just had a brilliant brainstorm! Let’s have a contest. Readers can develop their own model portfolios with companies they have been researching. You have been researching companies to invest in, haven’t you? But maybe you are a bit nervous about putting the money you have been saving, you have been saving, haven’t you?, directly into the purchase of stock in those companies.
So, now is your chance to get your feet a bit damp. Go ahead, pretend you have about $5,000 and “buy” stock in four or five companies on Yahoo’s portfolio pages. Then you can watch as your “portfolio” goes up or down. Don’t forget to calculate dividends.
As longtime readers know, we have been running our SWI and MPI reports weekly for the past year.
We’re going to discontinue the SWI, our Swatch index, which tracks the change in dollar cost for the watch we got in Switzerland about a year and a half ago. The dollar lost, then regained some value, and we thought this was an interesting way to track the changes. But this index is losing validity as time goes on. We’re pretty sure the Swatch company will either change the prices or the models, or both, rendering our comparisons invalid.
OTOH, our MPI – the Model Portfolio Index – is a different matter. It has been quite stable since we started it in May 2011 and are now up a mere $14 – not a very good showing. We haven’t calculated dividends lately, but they could amount to something like $130 in a year.
So, can you do better? Let’s try it for a few months. You pick a portfolio using Yahoo’s great financial software to buy stocks in any quantity that sums to around $5,000. Let’s see how you can do. Use the comment section to post your percentage gain or loss once a month. You can also post the companies you “bought” if you want to. If you want to invest in commodities, feel free, of course, but the percentages will require a higher degree of math literacy than just doing stocks. Don’t give us any personal information, please.
We’ll start on Jan. 1, 2012.