WTF Fund Update (Mid Year 2012)

It’s been awhile since I’ve done an update to my WTF Fund. The funny thing is I wanted to use the account specifically to just do any type of really risky investment. Meaning if the money in this account were to go to zero, I still could sleep at night. The funny thing is I really haven’t traded with this account that much.

I know this sounds like a lame excuse, but maintaining this blog and my business has left little time for stock research. I’ve had little time to do the level of research I like to before pulling the trigger on any advanced options trading or doing any shorts. So, for now, the account has only long positions.

As another note, I am still fully invested with the account, even though there are many warning signs in the economy I should decrease my stock allocation and go more to cash. For now, I’m keeping things where they are. If I do make any adjustments you’ll see them on my Twitter or Facebook accounts.

Either way, I still can’t complain about the performance I’ve gotten out of this account. In a little more than 1 1/2 years since I started this account, it’s up 48%+.

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I sold near the peak of Apple’s stock price, and then added back some Apple (AAPL) stock when it was in the low 500′s. Long term I am still bullish with the company.

Since the last update, I have added Google (GOOG) to the portfolio. I added Google to the portfolio for really two reasons. The first reason is the stock valuation is cheap, and the company has great financials. The second reason is to hedge my bets with this very web site.

Let me explain. As I mentioned, most of the traffic to this site (Investor Junkie) is SEO based. I am in the process of changing this, and it is a long term business strategy. Though no matter how I slice it, I will always have a decent portion of my web traffic from SEO. So there is no way around this.

Google, like any company should, is looking to maximize their profits. This means organic SEO is pushed further and further down the page. In some case below the fold. Google wants to keep the visitor on their web site as long as possible and not direct to other web sites. So this is my theory: if they really implement this too far, it will mean decreased income for my web site. Think of it as a form of hedging. If they do make this change it should result in huge profits for Google. At the moment I’m finishing this post (July 22, 2012), Google is slightly above the purchase price I bought it at, but in my opinion still a great deal.

I still haven’t added the promised $10,000 to the WTF Fund annually and hope to have the funds available at the second half of this year. If Google is still around the same price it is currently at when I add more funds, I will use a portion of it to add to my position.