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Saturday, April 30, 2011

BLOG STOCK CHALLENGE

It was back in November of 2008 that I initiated my blog stock challenge.  I purchased:

MIcrosoft  (software for the smart grid)
General Electric  (invented the modern wind energy conversion device)
Lockheed Martin (developing OTEC facility for Honolulu)
Boeing  (expressed interested in the hydrogen jetliner)
Ultra Basic Materials (a materials derivative)

I later added:


Ford (because they were innovative on next generation vehicles)

As President Barack Obama was just elected, I had a suspicion that he would be cutting the defense budget.  Thus, as many of these companies depended on continuing wars, I had second thoughts.  However, my green philosophy prevailed, and, it turned out that Obama's defense budget actually grew.

The progress has been impressive (number represents $ invested / current $ value):

1July09     1.56
3Jan10      2.14
5Sept10     2.34
29Apr11     3.10

Thus, if I had invested a million dollars, these stocks would now be worth $3,100,000 over a period of 29 months.  Unfortunately, I did not sink so much into this challenge.

The key, of course, is that I initiated the challenge when the market was low, with the Dow Jones Industrials at 9328, whereas it closed yesterday at 12811.  Percentage wise, the market went up 37%.  However, my stocks jumped 310%.

Was I brilliant or what?  Actually, the difference was pure luck, for I bought Ford at 1.9 and the latest value is $15.47.  So my simple solution to winning on the stock market is to buy when the Dow seriously dips, but make sure you are really lucky in your purchases.

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2 comments:

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