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Friday, December 20, 2013

FINAL BLOG STOCK CHALLENGE REPORT

Yesterday I sold all my stocks.  Here is how the blog stock challenge started:


My blog stock challenge began on 3November2008 when I purchased five stocks, not because they were looking promising, but I thought I would almost foolishly buy those blue chip companies admirably developing sustainable resource projects.  Click on that date for details.  With Barack Obama coming in as president, I knew defense projects would take a hit, but still bought Lockheed Martin and Boeing.  It turns out even he is afraid to consider my 10% solution for peace.
Then in March 2009 I purchased Ford, first because they were always conscientious about next generation vehicles, but, also because it was at a good low of 1.9.  There was a point, then, in June of 2009 when it looked like GM was going to avoid bankruptcy.  So I bought some of their stocks, because if they survived, Ford would drop.  Alas GM went bankrupt a few days later.  Amazingly enough, GM became GMGMQ, and initially dropped, but jumped up one day to 20% above my purchase price.  So I sold.  The stock later sunk, but I actually made a few bucks by hedging my bet on my Ford stock.  Well, the best part of all this is that Ford is now at 16.8.  


How have these six (plus the old GM) stocks done in a little more than five years?  They are up 463%.  The timing and magnitude were ideal, for I made enough money to buy into 15 Craigside.  When I sell my current apartment, I'll consider re-entering the market.  However, only if the stock market crashes--something I expect by 2015--and I can catch the next recovery wave.  

That 4.63 factor increase had nothing to do with my financial acumen.  There is only one policy for stock purchases:  BUY LOW AND SELL HIGH.  Today, the Dow Jones Industrial Average hit another new all-time high (16,288). Sure, I could have waited another day, but you just never know.

Incidentally, these above six were among two dozen stocks I've had for a dozen years, and all were sold yesterday.  The overall percentage increase for all these stocks for this period was in the range of 200%, not particularly outstanding, but better than keeping your money in a bank.

I was lucky enough to ride the following:
  • I bought Amazon.com at $16.64/share and sold at $396 (+2380%)
  • I bought Ford at $1.90/share and sold at $15.26 (+803%)
  • I bought Sirius XM at 35 cents/share and sold at $3.41 (+974%)
I have had my embarrassments, for I lost everything with United Airlines and Enron.  However, even including these disasters, I still more than doubled what I invested.

Nothing like a Friday sunset dinner on my lanai.  I had a 1984 Joseph Phelps Syrah, which would have a value today of around $18:


A thirty year old wine, and still excellent.  I barbecued a Costco blue plate rib eye and saw the following sunset:


Certainly looks like an atomic bomb with a hydrogen bomb explosion in the background to the left,  If I had this view in 1962 I would have seen those H-Bomb flashes, which would have been just right of this scene.

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