My 2 Kids & I: June & July Additions
Lots of volatility all over the markets. As many stocks as I have now that I’m publicly sharing a portfolio, I can’t catch the easy bounces I used to never miss. But here’s the best performers in each of our portfolio’s currently. All of these stocks were purchased in June or July 2022. Hard to hold onto easy gains that are lucky jumps (to someone who doesn’t time things) but I’m trying to be a patient long term holder. But what was successful early on was grabbing those quick 10%-30% bounces in 1-3 months. Doesn’t seem like much but if you compound 18% quarterly (random quarterly performance pulled from top ranks), it comes to almost 100% annually. If you compound 10% per month, it comes out around 300% annually. We’ll see which method works best; the easy swing trade/flips or the buy and hold, for me personally. This is why I have multiple accounts; several 401-k & IRA’s, so if I mess things up it’s not ruinous.
I had my kids start picking their own stocks to diversify our portfolios in their custodial accounts from my own. They picked $AAPL, $SBUX, $NFLX & $LULU. So the stocks they picked a couple weeks ago are smacking me around already. Should’ve let them pick all their own stocks all along.
What’s funny is that the stocks I chose in my portfolio are the biggest losers currently. The stocks my system picked are kickin’ ass. I wanted a mechanical system to remove my emotion. Seems to be doing well so far.
All purchases were made between June 3 & July 27. The two companies I blacked out, apam Research and Target, were bought in May.
First 3 picks are my portfolios top performers right now, bottom two picks are son & daughter’s portfolio.
Daughter chose Starbucks
Son chose Lululemon
For all the doom and gloom I hear about in the stock market today, these returns don’t look too bad; for positions less than 60 days old. Tempting g not to flip ‘em like I use to.
I can resonate with this post. I used to buy and flip, and to be hones was very poor at it. As you mentioned above, I too designed a 'mechanical' system that in a way chooses the stocks for me. So far so good. Thanks for sharing, so great that you are educating your kids on this. I'm sure mine would only pick $MCD and $KO :)
@retire4life can’t go wrong with McDonalds and Coke in my mind🤣
I never interested to buy and flip. It when I buy and it’s up 22% in 2-3 weeks (irrational) I’ll sell it back. Usually get right back in a week later at original price. I buy for the log term and flip opportunistically.
@retire4life it’s pretty mechanized. I only look at past and TTM ratios. No future estimates for even one quarter. I’d have to count, but I look at probably 400-500 individual data points. But can eliminate a stock in less than 5 minutes as soon as I see negatives, negative earnings, negative growth, or shady accounting. The buys I go through and compare much deeper.
But I’ve found 5-6 sources; apps & websites, that use hundreds of (fundamental, performance related, long term) data points to do a deep analysis and break it down into easily digestible bits. I use these and my own deep analysis to quickly analyze data that used to take days.
It’s always going to be an art, but when me and my sources all agree that I’ve got a wi. Er with very few risks, I’m pretty comfortable.
@retire4life not sure how old your kids are but I had my 5th graders pick their own stocks. I just told them to imagine the company that they thought the most people would use, for the longest time into the future. They chose Chipotle, Starbucks, Apple, and Nike. Check them charts since 2013; they kicked mine and most everybody else’s asses. They know what’s popular and spent on better than we do. I don’t just let them buy any company, I would obviously do some general analysis. But they’ve chosen companies that seemed okay, if highly valued for my personal liking. I should’ve trusted them when they were in fifth grade. I just did it as a project after reading Peter Lynch’s book.