I’m trying to be as transparent as possible with this fund to show what I’m doing isn’t BS or made up. If I do poorly, I have no issue showing the results. If you want to see my trades, you can visit TradeKing. I am relying on Quicken to give me accurate performance results.
Let me be clear – I’m not suggesting you make the same trades as I have. What I am suggesting if you have enough savings, and think you are decent investor, to try using a small part of your portfolio for some risk taking. I’m not suggesting you bet the farm. For my family, the investments listed here are a small portion of our net worth. Basically I’m stating don’t try this at home unless you know what you are doing. The goal is for me and you as the reader to become better investors.
I was very fortunate and did very well with my fund for 2012. According to Quicken, my return was 43.40%, easily beating most indexes. This does not include a small dividend from Apple of $82.15. I was able to add $10,100 into the account for 2012. Slightly exceeding my annual funding goal. Even though I haven’t followed through with my riskier bets via options this year, I still had a decent run of performance. The account’s value as of today is now valued at $27,606.13, with $15,512.62 in cash.
I sold most of my Apple stock (AAPL) on October 26th at $609.43/share before the huge drop in the stock price locking in my gains. The shares I sold were locked in as long term gains.
I’ve kept my position with Google (GOOG). It has since increased to $715.19/share. I still believe Google has some decent upside potential and am a long term holder.
I’m sure some readers are in shock that I’ve bought these two stocks after the shooting. What a heartless/insensitive thing to do right? That I’m profiting from the deaths of these children.
Let me be clear, I’m not buying because of the shooting itself. It was a horrible tragedy, and I have three children of my own. I think it’s terrible such things could happen in our society. With that said, I believe nothing will be solved by our government taking action. If anything, they will make the situation worse. So it is a bet against our government and the fears caused in society from their actions. Some of the fears are justified, some are not. Either way this will cause an increase in sales with both firms. In a free marketplace, the profits or gun sales would have no effect from the Sandy Hook tragedy. Since guns are highly regulated, it makes the market that much more manipulated.
I bought the stocks because historically I know how stupid our politicians are. They will act in haste because they have to “do something”. They will create new laws that, while they seem nice on the surface, will be ineffective at the core problems. The laws will cause fear with the general public and increase the sales for both companies. So far I’ve been proven right with this bet. After President Obama’s executive action yesterday, both stocks were up 4%.