Tuesday, December 05, 2006

How I investment, and an update on my own "Mad Money" account


I guess I sometimes wonder how to let people into my head as far as my investment ideas. It is a tough one, and a balance between a full and open discussion of the whole investment portfolio, or something less.

Well, I'm not exactly ready for the full disclosure....mainly because it is not just my money, but my wife and family and because I'm not sure exactly how that would benefit me.

So I took a small bit if stock I had with Vonage and moved it to a separate account where I will try to invest it in directions I think make sense.

Let me say right now though that this is NOT what I have EVER done. Even back in the boom-boom '90's, I was never a day trader. In fact, I very rarely owned individual stocks. I was always a stock and bond fund buyer....and except for some company stock and a few government bonds, I have never wanted to own individual securities.

Too risky...too volitile, too much work. (I'm the slow and steady saver type)

My investment philosophy is one of diversification because I am a very risk adverse person. In fact, when I finally went to an investment advisor, I wanted to make sure they were not only suggesting diversification across funds, but also fund familes! (I didn't go so far as to diversify across advisors....we just don't have enough money for that :-)

So this small portfolio is not at all a model for my own investments. It might be what Jim Cramer calls "Mad Money"....but even so, I am not chasing risky investments. I might be a bit more of a market timer, but I'm not in it for the quick buck. I want to try and do the homework to pick good solid companies in solid markets that investors will look favorable on. (and buy their stock)

Because my investment amount is small, I am probably going to limit this to 2 to 4 stocks at any one time. (the sales commission is just too pricey for any more)

So I went from 300 shares of Vonage a few months ago (sold at a loss...ouch! I hate losing money!!!) to the current mix of 99 shares of CHINA UNICOM LTD and 11 shares of ISHARES FTSE/XINHUA CHINA 25 INDEX FUND.

These together with $3.01 in cash are currently valued at
$2,262.30. (I had initially bought the Vonage at about $3000...and sold it for about $2100) I'm clawing my way back from the Vonage loss....but I think these shares will give me a good steady climb for at least the next 3 months.

I think my last accounting here was when I bought the FXI, and I had $2202.27 in the account...so todays reporting is a net plus of anout $62.03 or about 3%. (yes, there were some down days in between, but I have confidence in these picks overall)

We shall see how things progress....probably not with a weekly report, but perhaps every month or so.

Wish me luck!

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