Sunday, April 1, 2012

Week 49 update, Intelligent Investor, and Starbucks

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

In the video I made a statement that needs clarification. I said you do not own stock because of future growth. Then later on I talk up Starbucks future growth as a reason I want to buy it. Isn't that contradictory?   Future growth is important but if you are a capital gains investor and you feel it is overpriced then you might want to consider selling. If the chance of future growth is the only reason to buy then go buy AMZN at a 146 P/E or CMG at a 61 P/E. Price is also a big concern because if they don't hit that expected growth? You find yourself in a position that NFLX investors did in July 2011 when they were a 71 P/E.

Weekly Activity
$100 deposit into Trading
$1.15 dividend from PCY

Model Portfolio Totals

Trading Account: $1,269.62
Estimated Monthly Income: $0 (Not ready to trade until Phase 1 completed)
Max loss per trade (1% of account): $12.69
Portfolio stop (3% account): $38.08

Investing Account: $2,744.00
Estimated Monthly Income: $9.78 ($0.205 from DRIP)
     ABT: $0.76 income/month
     WMT: $0.58 income/month ($0.004 from DRIP)
     COP: $0.77 income/month ($0.007 from DRIP)
     ERF: $1.75 income/month ($0.063 from DRIP)
     O: $1.08 income/month ($0.027 from DRIP)
     JNK: $1.67 income/month ($0.070 from DRIP)
     PCY: $1.15 income/month ($0.035 from DRIP)
Maneuvering Cash: $650

Savings Account: $1,300
Emergency: $1,000
Portfolio Protection
     Trading Account: $50
     Investing Account: $250
CDs: $0

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.


  1. I am wondering if you want to hedge you investing account positions (i.e. protective puts) is that going to be done within the investing account itself?

    I believe you said if you do stock options trading in general it will be done in the trading account itself

  2. If I am going to do any hedging I'll probably do it in the trading account even if its protecting the investing account. The idea being a separation of duties the money is doing.
    Trading: Buying and selling things to make money
    Investing: Long term ownership of things I want to own.
    Savings: Protecting both accounts.
    Wouldn't the hedging fall into savings? I want to keep that as passive protection and not risking it and options do have risk of losing that money.

    Hopefully that clears it up. And hedging is a big IF. I don't foresee doing anything until late in the year if not 2013.