State of the Stock – February

This February we got quite a bit of money from our tax return. As discussed, I took that return and invested quite a bit of it. The idea was to minimize the commission fees, by investing hundreds at a time using the 3 Months to Profit formula. So I did. Granted, it’s a bit of a misnomer calling it that, because it doesn’t guarantee anything. As you can see here, stock prices fluctuated, and profits are all negatives.

Another reason why you’ll notice a change between INTC and INTC from January, is because I realized in doing my math that I was figuring the profit incorrectly. I had been “re-adding” the commission to the value of the profit field, but I re-added about 200% more commission than I needed to, thus initially creating a false profit. This is why I don’t pretend to be an expert, or that anything you see in my portfolio is solid gold advice.

That said, I also let it be known when I make a mistake, and when it’s fixed. So here are the updated numbers as of this morning. End of day values may change, but as of 11am these were accurate within a few pennies.

STOCK TOTAL PURCHASED TOTAL SOLD PROFIT
TEU 126.4225 65.0221 (-$5.98)
BAB 13.682 4.0772 (-$26.11)
INTC 3.0778 3.0778 (-$9.94)
O 11.6080 1.5408 (-$8.27)
PGH 40.7213 0 (-$10.95)
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Make George Washington Work For You

If you work, you most likely get a tax return. If not, I feel sorry for you, now go stand in the corner and feel shunned.

Kidding.

Anyway, what I’m doing this year with my tax return is this: Making it work for me. I worked my ass off for that tax return, and now I’m going to give it the same treatment it gave me. Hard work, and a bit of flogging.

I’ve taken $1,000 of my return and sent it up to my stock portfolio. That’s about 10 times the amount I invest on a normal basis, but that’s the point. Investing is long term. Which means, if you’re doing it a little at a time, even fucking longer. I love it though. I love to watch the little numbers go from little numbers to big numbers, growing up and spitting out little numbers of their own.

Yes…I did just refer to my dividend paying stocks like they were children. And that’s how I treat them. I watch over them, I make sure they’re growing and doing the things they should, and I guide them as needed, but for the most part I let them do what they do, and live their own lives.

You can expect that this month’s portfolio evaluation will be greatly in the negatives, but don’t let that fool you. Negatives are fine. Negatives below cost-basis are not. And that’s the idea.

What’s cost-basis you ask, oh digital reader who I can apparently hear?

Cost basis is the price that you paid for those stocks. Meaning, if you dropped $1,000 on stocks, your cost basis is $1,000. Now, if you’re smart like me (which you are, because you’re here) you know that you need to also figure in commission. So, for this $1,000 investment I’m losing $4 per trade, on 4 trades that totals $16. But the total amount I’m spending is $1,000 for that cost-basis, meaning only $986 of it is going towards actual shares of stock.

So if you decide to go ahead and use the Capitalist Cares Stock Portfolio as your way of tracking stocks, you’ll need to know a few things. When you look at cell B3, you’ll see it’s labeled Portfolio Profit. You might believe that’s simple cost basis with current value subtracted. That is not the case. That is all expenses subtracted from Current Portfolio Value. By all expenses, I mean I include future expenses into it. The value there is the dollar amount that I would have as profit if I were to sell every share that I owned at the current prices without any change. It sounds hard to calculate, but really all I did was add the sell commission to the cost basis. I did that by subtracting that from the value for each row. You can see that figured in on the F row. The part of the formula that reads “- $E$2” is the defining calculation for removing the sale commission.

This post has gotten a bit long and boring. So here is a picture of a cow. Because, you know…cow.

Moo, bitches...

Moo, bitches…

State of the Stock – January

So I decided to do a run down of my current situation with my stock portfolio, where I have decided to change how I buy my stocks. Since I made that decision, I have purchased no new stocks outside of the automatic dividend reinvestment. I can already see growth, and potential with this method of investing, in a short period of time.

Some of you may wonder how I get my figures, and I have explained this in the past. In short, I do not consider dividends to have a dollar value, simply because they are free to me, and cost no commission to reinvest, thus they are a zero dollar amount stock share. For this reason, the value of the Average Price Per Share can, and will, creep closer to $0. This allows me to build up a portfolio of solid dividend shares, sell off all of the shares that I have purchased to that point, a piece at a time, and eventually leave myself with a dividend of $0 share stocks.

This is akin to a gambler walking into a casino with a $100 bill, winning at roulette for $500, and then depositing that $100 into his account and playing with the $500. Is it really losing money if you lose it all? Of course, it is. But it hurts much less, because you’re not actually at the negatives, you’re at the break even point.

STOCK TOTAL PURCHASED TOTAL SOLD PROFIT
TEU 65.0221 65.0221 $6.84
BAB 4.0772 4.0772 (-$17.40)
INTC 3.0778 3.0778 $13.24
O 4.9486 1.5408 (-$40.69)