The PiggyBankBuilder Portfolio – Year End Tally

Roller coaster, that is how I would describe the performance of my imaginary investment portfolio. graphFor a time it was getting hammered, huge losses in the early months. Then it started to recover and turned positive. The rally continued into the end of the year and would have resulted in a fairly nice profit. Here are the results.

  1. ishares Silver Trust(SLV) – Purchase Price: $29.48, number of shares 42. Current Price: $19.27 Loss of $428.82     ** What can I say, I thought with all of the chaos and uncertainty in the world that people would seek refuge in precious metals. Perhaps I was early, but I was still wrong.
  2. Cablevision(CVC) – Purchase Price $15.05, number of shares 82. Current Price: $17.78 Gain of $223.86     ** This stock is in my opinion a great take over play, sooner or later I think a larger cable company will come and try to buy Cablevision out. 
  3. Alpha Nat. Resources(ANR) – Purchase Price $10.28, number of shares 117. Current Price: $7.21 Loss of $420.10     ** I thought energy prices would go up,they didn’t and this stock suffered. 
  4. FaceBook(FB) – Purchase Price $29.22, number of shares 42. Current Price: $55.44 Gain of $1101.24     ** I picked this stock because I thought social media was trending, boy was I right.  

All told the $5000.00 “invested” in the “PBB Portfolio” would have earned $476.18, just shy of 10%. I said “would have” for two reason. First it was for educational purposes, I didn’t put a dime into it. Secondly, when the portfolio began losing money I set a stop loss and would have sold out. This is an important concept, so in the end I would have lost money. Situations like these can be maddening. 

What did I learn? I guess my biggest mistake was in my energy play. Oil prices tend to go up in the summer, well 4 out of the last 5 years they have. I should have picked an index fund that tracks the energy sector. I would still have a loss, but it would be much smaller. Also if I am honest FaceBook was a bit of a fluke. 

I am going to continue this exercise next year, incorporating what I learned. Stay tuned. 

Leave a Comment

Filed under Intro