My Retirement, Part Two:
Well, here we go people. I bought in this morning, and I now have about 95% of my Portfolio set up. I have received so many requests to report what I decided to buy that I am doing it in detail. I am going to list the link to my Portfolios in this post, and you can take a look, real time, at what I have bought.
I figured I wanted about 400K in a mutual fund that would give me some diversity and still could be milked to help support the 250K I want to spend each year. I decided to buy QQQ to cover that need. Then, I thought, why buy all the losers in QQQ?
So I made a list of the QQQ stocks, and ran charts on all of them. QQQ was up a little over 84% last year. I found that exactly 50 of the stocks on the QQQ went up more than 84%, and 50 were under. I then decided to split the 400K between the 50 stocks over. When I started to do so, I found I would have to buy a lot of small lots, so I cut the number of stocks purchased to the top 25 on the QQQ List. The top company on this list, Voicestream Wireless, (VSTR), was up 13,139% last year, and the bottom company, Sun Microsystems, (SUNW) was up 255% last year. If I take the 25 companies, throw out the VSTR and SUNW to even the average, the average increase for the other 23 companies last year was 565%.
That is an incredible number. (I would love to see, if anyone out there is anal enough to do it, what the top 25 companies in QQQ a year ago did to date.) There is no way, IMO that they will do as well this year. However, if they did a 56% increase this year, which would only be 10% increase of what they did last year, they will return me 225K! That will pay for a lot of Airline tickets, Hotels, and Zoot Suits! So I set out to buy 16K worth of stock in each of the top 24 NASDAQ companies this morning, at the market. I already had a ton of Q, which was on the list, so I just made a book keeping adjustment on it at this morning's opening price. I am calling it my "Mo-Mo" Fund. Here is the result.
siliconinvestor.com
Now, I am going to prune this list, using the "Russian Army" method, as the year goes on. I will add companies that make the top 25, and take companies out that fall off of it. This is a lot more cumbersome than just buying QQQ, and it will be much more volatile. I hope it will be more profitable!
This took care of the cash I wanted, the "Mutual Fund" to feed the cash, and left me about 800K to invest. I looked over our "G&K" List, our "G&K watch and wait" list, and added a few others that I was interested in. I set out this morning to buy 50K each worth of 15 companies I had picked. You will notice that I bought 8 companies for this list that I also purchased for my "Mutual Fund." I put my remaining Qualcomm in this Portfolio at today's opening price. I adjusted the Qualcomm price to keep my gain from distorting the Portfolio. Here is that Portfolio.
siliconinvestor.com
I am going to "Russian Army" this one, as the year goes on. I will go over my criteria for making changes in a later post.
I intend to leave these portfolios open to view, and I will post changes I make. I don't want to clutter this board any more than it is, so I may set up a separate "Lindy Bill's Joint" thread to handle what I am doing. |
