The mock portfolio I posted in August of 2005 listed exactally what I’d have done with 70K if I’d had it at the time. Click HERE for the original post. The breakdown follows with the 8/30/05 price and value alongside the current price and value in parentheses:
Total Value: $72,276.5 ($97,470) +34.86%
vs. S&P 500 (8/30/05) 1,201.7 (1/5/07) 1,405.75 +16.98%
vs. DJIA (8/30/05) 10,329.15 (1/5/07) 12,445.37 +20.49%
Stocks
1. PRU-Prudential – 125 shares – $64.21 (86.22)- $7,991.25 (10,777.50) +34.28%
2. MO-Altria – 125 shares – $69.48 (87.98)- $8,696.25 (10,997.50) +26.63%
3. AAPL-Apple – 200 shares – $45.74 (85.47)- $9,168 (17,094) +86.86%
Funds
4. FKINX-Franklin Income A-3750 shares – $2.50 (2.63) – $9,412.50 (9,862.50) +5.2%
5. FWRLX-Fidelity Select Wireless-500 – $6.55 (7.09) – $3,285 (3,545) +8.24%
6. PRLAX-T.Rowe Price Latin Am-300 – $20.31 (36.88) – $6,129 (11,064) +81.59%
7. PRASX-T.Rowe Price N. Asia-500 – $11.49 (13.96) – $5,700 (6,980) +21.5%
8. FKUTX-Franklin CustFDUtilities-700 – $12.22 (13.45) – $8,589 (9,415) +10.07%
9. FHKCX-Fidelity China Region-400 – $18.43 (24.43) – $7,296 (9,772) +32.56%
10. SSEMX-SSGAEmMkts-350 – $17.32 (22.75) – $6,009.50 (7,962.50) +31.35%
Is anyone interested in this stuff? I’m a geek when it comes to a lot of things, and the market is one of them. These types of games have always been of interest to me, much like fantasy sports. After this semester I’ll get another list together and we’ll see where that one ends up. Looking at this one here, I’d take profits in AAPL, PRLAX and perhaps FKUTX (not a fan of utilities at the moment).
Hell, I might be a taker. I have no idea how this stuff works.
Couldn’t charge you for it – – – – If you want to do something in the future, just let me know and I’ll get on it. The key when it’s your “forever money”, invested for retirement or an emergency, having it broken down in a number of different places is important, though I’m suspect of a lot of these mutual funds…they’re scraping off the top enough to convince me that it’s better figuring it out ourselves. The emerging market funds and a few specific sectors are really the only ones I look at. Stocks on the other hand, I’m always reading up on it. Prudential-Altria-Apple were my top 3 long-term investment picks at that time, followed by Netease, Google, PetroBrazil, GoldmanSachs, Advanced Micro Devices – – – –
I think a spread out portfolio of those 8 in equal disbursements would have returned much higher than 50% in the same 16 months. Depends though, as there’s a time to take profits and sell off…for AMD that was a while ago when it cracked $40 a share, and Apple’s time might be now (probably not though) – – – Google, Netease, Altria, Prudential…those I’d hold for a long long time, but when to buy is a factor as well…
And I’m babbling at this point…for 2007 keep an eye on any companies growing corn and/or coffee, even those selling corn seeds, it’s getting tight this year. China China China…Banks Banks Banks
What I always hear is that an 8% return is key. The thing is, really the only place to get an 8% return is in the stock market. I don’t think my bank offers anything better than 5%.
That rate of return is amazing at 35%.
5%? A CD? If you look at the list, there’s one FKINX, and that’s a fund that purchases US Treasury bonds…basically buys government debt, and at 5.4% that one is the kind of no-risk guaranteed return on investment that should constitute a portion of a portfolio…I suppose eventually equaling however many months worth of rent/mortgage one would need in case of an unexptected twist of fate…
Aside from that, it’s your golden years and/or the purchase of a home, etc…that $$ needs to do more for you than 8%, and it certainly can. Shoot me an email S.R. – we’ll toss around some ideas.