The PiggyBankBuilder Portfolio – Closed

Our experiment in investing lasted 5 months. That’s how long it took to hit my predetermined loss limit. closedThis is certainly not the way I wanted this exercise to end. I had hoped it would demonstrate the wealth building effect of investment in the stock market. Instead perhaps I demonstrated just how hard this can be. Here are the final results:

  1. ishares Silver Trust(SLV) – Purchase Price: $29.48, number of shares 42. Current Price: $20.86 Loss of $362.04
  2. Cablevision(CVC) – Purchase Price $15.05, number of shares 82. Current Price: $14.65 Loss of $32.80
  3. Alpha Nat. Resources(ANR) – Purchase Price $10.28, number of shares 117. Current Price: $6.39 Loss of $455.13
  4. FaceBook(FB) – Purchase Price $29.22, number of shares 42. Current Price: $23.29 Loss of $249.06

This fictitious investment portfolio has ended.

Where did I go wrong? I have been wracking my brain about this. I made my choices based in news information and previous data and invested accordingly.

- I thought precious metals (SLV)  would rise based on problems in Europe and the financial world in general. This could still happen, but has yet to do so.

- I think that Cablevision (CVC) is a strong, well run company and is easily worth 30 dollars a share, again I think the long term will prove me right, but it didn’t move much this year. 

- For the last 5 years energy prices have climbed as we approach the summer driving season, this year they didn’t and ANR got clobbered. This is the one stock I regret the most in the portfolio.

- I read about the Facebook phone and I believed that it would be successful, it hasn’t been and I don’t think it will be, I have my doubts about FaceBooks future.

So while I failed this time, I will certainly visit this portfolio at the end of the year and I will most likely try again later. I hope this exercise gave my readers a glimpse into investing, even if the outcome was failure. 


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