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Wednesday, June 20, 2012

Diversification Works

Well, so far it has been a full week since I have revamped my portfolio, and needless to say... I got what I expected. After browsing around looking for some of the main ideas of investing, I got the idea of this main term that should guide investors everywhere: Diversification.

There is still growth potential and much less flop potential when you follow this rule. It may seem hard to do at first because you might want to jump onto the next big investment or not even have enough funds to divide, but you should always find a way.

To put it this way, think of stocks as a giant cookie. You want to savor the taste of this cookie as much as possible, so what do you do? You divide it into more pieces you get more of the cookie. That wasn't really a good relation, but you get the point.

Anyways, here is what my portfolio looks like.

I am pleased. Some of the stocks have been falling a bit these short days, but the fact is these are all long term stocks and I don't have much to worry about. Honestly, I am most excited with the portion on the top right.

Annual return. That's what most investors, families, whatever around care the most about. "How much money will I get in return for my investment at the end of the year?"

Well, for me it is 15%. That's crazy.

Look at this article here.

10% is a great investment and here my portfolio is with 15%!

Well, let's hope it lasts.

Next post I'm going to be talking about a controversial way to invest, Domain Name Broking.


Thursday, June 14, 2012

My New Portfolio

There is no complete lenient industry I'm investing in.
Well, after a long time deciding on how to partition the different investment choices, I decided to go with these percentages:

35% - Technology (Apple)
30% - Food Services (Kraft)
20% - Industrial Services (Caterpillar)
15% - Other Investment Firms (JNJ)

The reason I decided upon this is because of how I wanted technology to be a major kind of investment because of it's all the rage right now, and everyone really loves it. There is a huge profit margin for technology, and I think that technology will always be one of my favorite choices to invest in. Another added addition is that it is really easy to know the basic direction the industry is going in because of how much news and media is surrounding technology.

Food services is another choice of mine because of how stable the industry will be. Honestly, there is no way that suddenly the entire world will have no more need of food; it will always be a necessity and a growing business with everyone saying that our population is exponentially growing.

Industrial services is yet another choice of mine because of how it is also becoming a thriving business with countries making their leap from third world countries to technologically-advanced countries. One signal of this is how they are constructing newer and better objects and buildings for their public. The only way they can do that is with construction tools. Also, there is no way that the industrial machinery industry will suddenly collapse, like technology can.

Lastly, I chose to save a part for investment firms. I have chosen 2 firms which I believe invest and create the right companies and honestly, they can do some of the work for me.

So, here's the math.


Technology - $35,999.61
Food Services - $30,856.81
Industrial Services - $20,571.21
Other Firms - $15,428.40

Well, yeah. That's what my portfolio now looks like.

There's going to be another post next Wednesday. Stay in touch.

I also want to explain how banks work; some stupid people out there think that they just lock your money up in a safe and pay you for it.


Thursday, June 7, 2012

The Better Way to Invest

I have since realized that my method of investing was a bad one, because I couldn't diversify enough. I only stuck with 3 industries, which were volatile and not sure to give me return, so as a result, I sold off all of my stocks in hopes to completely revamp my method of investing.

So what I did (I would like to show you guys a picture but it would be too much of a hassle) was list all of the different major players in the different industries I wanted to invest in.

This is basically the list I created:

I listed the industries and some great companies which fit into that industry, and I also listed some prospect investments.

So here it begins!



Food Services:


Industrial Services:


Good Investments:


I know this might seem kind of confusing right now, but its somewhat hard to explain and I am still in the middle of the process of deciding on which investments to go with. (I'm really try-harding this one.)

Don't worry, I'll be here next week with my choices and reasons.

I need to get this thing done, but I need something which is not my friend right now, time.



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