Its been an interesting month! All kinds of news from various central banks all over the world. 100’s of companies reporting earnings and projecting what their sales and profits will be in the coming quarters. Oil down, gold up, whats an investor supposed to do? Ha, its easy. Remember, a 6th grader can do this. First lets review what we did in January:
The S&P 500 was down 1.27% since we entered the market and our portfolio was up 1.41%, a very respectable out performance. A $1414.25 profit for the month.
OK, what do we do now? Well, I have done some additional research and have decided that instead of investing in the Top 6 of our 13 investment choices, we will now be investing in the Top 3. Although this hasn’t been the case recently, over the past 40 years, investing in the Top 3 has returned a bit more than holding the Top 6. The numbers don’t lie. I thought going with the Top 6 might give me a little more protection and diversity but I cant deny the numbers.
I will post the details of the 13 investment choices next week but it looks like the top 3 have not changed so all we are doing here is selling off the 4-6 ranked investments from last month and reinvesting those proceeds evenly into the top 3.
So, that being said, our portfolio for FEBRUARY now looks like this:
|02/01/15||Shares||Price 2/1/2015||Change Month|
But what if the market crashes? What if it doesn’t? You see, with a portfolio built on rules, not predictions, you essentially remove guesswork and emotions from the multitude of variables that go into investing. But what IF the market crashes…well, sometime this month I will review information from other blogs I read like http://www.investingforaliving.us and look at just what worst case scenario has been for a portfolio like this.
See, a six year old can apply these rules and techniques and make as much return (or more) than most money mangers.
Enjoy your month!