My Best Investment – 1st Quarter 2009
Several months ago I posted about some of the great companies that I was buying as the entire stock market was tanking.
I purchased 15 companies over at Fristrade. As of today, nine of them have lost money, five of them have made money…but my account is sitting at almost EXACTLY the $15,000 that I started with…so I’m flat overall. That is ok, as I am generally investing for the next 4-6 years. I did this in late 2002, andby 2007 my original $10,000 investment in stocks had quadrupled. I liquidated around the time when the Dow Hit 13,000. (I originally had thought I’d made a horrible decision as the Dow continued to climb past 14,000…but I stuck to my guns and did not get hammered in this market.)
So like I said, I tested the waters with $15,000 about 6 months ago. My best RETURN was a 1 week trade on National City stock. I bought in at $1.80 per share, and about a week later sold for over $3.00 a share.
BUT MY BEST INVESTMENT HAS TO BE AMERICAN EAGLE OUTFITTERS INC. (AEO)
American Eagle is up 41.14% since I purchased it. Same store sales are down at AEO, but not terrible. I was a teenager once, I remember saving all my money to buy clothes. (We really seem to care about clothing here in America, don’t we) The company has next to zero debt, and almost $500 Million cash on its balance sheet. It is also highly profitable. I think as the economy softens, they do better than companies like Abercrombie & Finch…because the products is similar in style, very similar, but at a considerable value. That has been a winning combination for my portfolio!
2nd best investment…APPLE COMPUTER STOCK…UP 17.54%
Again, I’m not offering specific investment advice, just letting you know what I’m up to. Please seek professional advice when making any type of investment. For informational purposes only! Amen.
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April 13th, 2009 at 1:53 pm
Almost millionaire,
Congratulations on picking some rising stocks in a falling market!
Personally, most of the companies in my portfolio have not been faring well. Fortunately, the stocks which I bought in health care (Three Australian companies, including a manufacturer of hearing implants, a manufacturer of blood products and a private hospital operator) seem to be holding up OK – people don’t stop needing hearing implants or getting sick just because of a recession.
Unfortunately, I can’t say the same thing about some of my mining and banking stocks!
Andrews last blog post..What I learned from almost being mugged
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The Almost Millionaire Reply:
April 13th, 2009 at 3:58 pm
Thanks Andrew, Hindsight is 20/20, but if I would have timed it better, my portfolio would not be flat today and I would have had some nice gains overall. I’m not complaining about break-even in this environment though! I agree with you on the healthcare investments, mining seems ok too as the worlds populations is going to continue to demand raw goods.
Picking banking winners though, crap shoot, in my opinion!
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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April 13th, 2009 at 2:54 pm
I’m surprised that American Eagle has risen by 41%!
You wouldn’t think to see stock price increases like this in a down economy. While clothing is not a luxury item, it isn’t a necessity. At first I thought the stock price is just rebounding from last year’s fourth quarter turmoil, but that doesn’t appear to be the case.
Nevertheless, it’s good to see clothing can do well in this recession.
Mark Lewiss last blog post..Critical Sucess Factors: Learn to Fail
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The Almost Millionaire Reply:
April 13th, 2009 at 3:59 pm
Mark,
It has actually rose more than the 41% from it’s bottom, but I didn’t buy at the bottom. Strong balance sheets and income statements should always rise to the top over time when stock investing!
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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April 13th, 2009 at 7:57 pm
Its great to see some profits and an overall flat portfolio with the way the last few months have been. One of the key points readers should take is that you did not put all your eggs in one basket diversification is key to softening any potential losses in certain sectors.
So many people tend to put all their money in one stock and try to play it to prosperity. Spreading your money will probably mean a smaller overall gain, but at the end, more importantly, a small potential of an imploded portfolio.
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The Almost Millionaire Reply:
April 13th, 2009 at 8:12 pm
Great advice Aman, I probably don’t speak enough about diversification, but I should, becuase I am a big believer! It is SO important to stock market investing! Thanks for the comment and insight.
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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April 13th, 2009 at 8:21 pm
You have done so good investments in these markets. The markets are very unpredictable. I would advice caution.
Make Money Onlines last blog post..Do You Workout?
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April 14th, 2009 at 5:08 am
American Eagle, interesting…. do they pay dividends? As for the Carnival of Cashflow Consciousness, just email some article relating to passive income, perhaps…. preferably something more detailed or longer than this article – like a survey or review if you have one? Thanks for participating! Send some other pf bloggers along too – want to get a good turnout for the first edition!:)
MoneyEnergys last blog post..Announcing the Carnival of Cashflow Consciousness, “Rags to Riches” Edition #1
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April 14th, 2009 at 5:08 am
p.s. I drove past a Biggby Coffee today near Kalamazoo, I think…. yours?
MoneyEnergys last blog post..Announcing the Carnival of Cashflow Consciousness, “Rags to Riches” Edition #1
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The Almost Millionaire Reply:
April 14th, 2009 at 2:41 pm
That is cool. Could have been mine, but mine is in Jackson, MI about 1 hour down the road from Kalamazoo…so if you were on the Highway, it may have been a sign for mine…if you passed an actual store in K-zoo, it was my friends store! What brings you down from the Northland?
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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April 14th, 2009 at 7:55 pm
I’m angry, when the market bottomed I was on the bring of doing another major buy. But companies had been doing so poorly that I decided to stay out of the market and just leave my current investments in there. Could have easily made some great gains to offset some earlier losses on it.
You seem to have done well so far!
You’re doing a lot better than me. I’ve only had gains on IBM which is up 22% since I bought.
My worst are CBS/BAC which are down 25% and ING which is down 20%
Horace Browns last blog post..Chasing the Dream: The Case Story
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April 14th, 2009 at 11:41 pm
Actually been in the US for a while… had to do some errands in MI…so you’re thinking of taking on a new pizza franchise in addition to your coffee shops?? Well pizza and coffee are two amazing foods, so I think that’s a good choice – you’ll be a millionaire before you know it!
MoneyEnergys last blog post..5 Money Lessons You Should Make Sure You Learn While Still in College or University
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The Almost Millionaire Reply:
April 17th, 2009 at 9:10 pm
Slowly but surely, Personal Finance is a marathon, not a sprint, for sure!
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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April 16th, 2009 at 11:28 pm
You’ve got to hook your buddy up when you have not tips like this!
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April 17th, 2009 at 8:24 am
Yeah, I notice how Apple stocks is over $100. That’s pretty impressive considering the dearest stock I’ve ever bought was about $70.
What I have been doing is using the market to offset the loss in one of my stocks that I think has the best potential. So far I have bought and sold 4 times increasing my overall stock holdings by %50
Sires last blog post..There Are Consequences To Being An Ass
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The Almost Millionaire Reply:
April 17th, 2009 at 9:11 pm
@Sire
What are the tax rules for buying and selling a stock over and over again. In the US we have what are called “wash sale” rules if you buy or sell the same company within 30 days. It may be worth checking into.
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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Sire Reply:
April 17th, 2009 at 11:45 pm
We are not allowed to sell and buy the same stock on the same day as this is usually done to offset profit. I’m pretty sure that what I am doing is completely legit.
Sires last blog post..There Are Consequences To Being An Ass
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April 17th, 2009 at 4:44 pm
Wow… way to invest! It seems like a lot of the big clothing retailers are up, including Buckle, Inc. My wife works there right now, so I had to drop their name.
Trevor @ Financial Nuts last blog post..401k Retirement Tips: Not Rolling Over a 401k Can Cost You
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The Almost Millionaire Reply:
April 17th, 2009 at 9:12 pm
Ya Trevor, AEO has been amazing, again today. I love the Buckle, I’ve never bought the stock, but I’m wearing a pair of jeans right now that they suckered me into paying over $100 bucks for. Very strong company!
The Almost Millionaires last blog post..My Best Investment – 1st Quarter 2009
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April 21st, 2009 at 5:36 pm
Great post! This is why I love blogging. Always something interesting to read, watch and enjoy. It keeps the mind active. Thanks, Amy x.
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April 25th, 2009 at 6:09 pm
Great stuff… it’s encouraging to hear positive stories amongst all the doom and gloom reported by the media.
You’ll have to keep us posted on your progress… I agree that now is a great time to be active in the market.
I have an article coming out soon… about an article in the May issue of Smart Money. I think you’ll enjoy the content as it relates to this idea.
Thanks!
Dave
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The Almost Millionaire Reply:
April 25th, 2009 at 11:48 pm
I’ll be looking out for it Dave! Now is the time to invest. When there is fear and blood in the streets, you can get ahead by keeping a level head.
The Almost Millionaires last blog post..Tips for New Bloggers
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May 3rd, 2009 at 3:59 am
Wish I had a site like this one, I will link back I think my readers would enjoy your site.
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May 12th, 2009 at 7:25 pm
I have traded options on ETFs, but I would rather find the best stock in the index and take a position in it. For liquidity reasons, institutions have to stick to the ETFs. We are all small, nimble traders and we need to use that to our advantage. Stick with stocks.
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October 5th, 2009 at 1:29 am
Interesting. I think my best investment in Q1 2009 was just letting my cash sit on the sidelines while my friends kepy riding the market down.
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