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Monday, February 13, 2012

HOW TO WIN ON THE STOCK MARKET

I haven't posted my Blog Stock Challenge results for more than six months now.  The purchases began from the Fall of 2008 to March of 2009.  The average prices at the beginning are in the first column and the values today in the second:


  • Microsoft                    20.25    30.68
  • General Electric          16.67    19.06
  • Lockheed Martin         77.13    88.03
  • Boeing                        44.17    74.97
  • Ultra Basic Materials   13.37    40.29
  • Ford                             1.90    12.58
  • General Motors             1.38     1.66
General Motors went bankrupt, so the 1.66 is the price I sold at AFTER the demise.  I actually made money during that two week period.  I don't show the shares/stock, but the total value increased by a factor of 2.65.  I bought these stocks because they each had some relationship to green energy.  This was a period when Barack Obama came in as president, so I went against all common sense because I thought for sure the defense industry would plummet.  It hasn't, because the Military-Industrial Complex came to my rescue, totally against my wishes, as this U.S. News and World Report Debate Club posting shows.  A quick analysis indicates that I purchases when the market was low, plus, I was lucky enough to get Ford at $1.90/share.  
If you are swooning that you should have bought Apple at $99 three years ago, for it closed today for the first time above 500 (502), that ratio is 5.1.  My Ford jump is 6.6.  Google reached 612 today.  Three years ago, 362, or a ratio of 1.7.  Amazon was about 50 three years ago.  It closed today at 192 = 3.84, not bad, but if you bought a decade ago at 19 (which I did), the factor is 10.  But Apple ten years ago cost $25/share, so the ratio compared to today is 20!


Thus, the whole point to this posting is don't buy when the market is high (since the Fall of 2009--I'm waiting for the next dip under 10,000, which could be early next year), and be lucky.  My past has not been all Ford and Amazon.  I still hold stock certificates for United Airlines before their first death and Enron.  Thus, the third warning about how to win on the stock market is don't listen to me.

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The Dow Jones Industrials jumped 73 today to 12,874. Getting close to 13,000.  World markets also mostly went up.  Gold increased a buck to $1723/toz, while the WTI Cushing is at $101/barrel and the Brent Spot at $118/barrel.

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A calamity is facing Madagascar, as Tropical Cyclone Giovanna is just about to slam into their mid-west coast at 145 MPH:





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