I really only glance at my stock portfolio about once every other day, mostly to check that nothing has imploded. My desire to be a knowledgeable stock investor fizzled after reading books about index funds and how people much smarter than me can’t beat the market. But I still have my “play money” stock portfolio, which I started with $5,000 back in 2001. It’s now at about $5,690 (publicly tracked here), and I’m still beating the S&P 500 since its inception. Just call me a slightly lucky monkey throwing darts.
I noticed today that Scholr Pharmaceuticals (DDD), a stock I bought after minimal initial research, was finally above my buy price of $4.80 due to some buzz about a potential buyout. Since buying the stock, I did a bit more reading and am really not impressed with the company after all, so I took this opportunity and sold my 100 shares at $5.25.
My taxable brokerage account is at Ameritrade Izone, so it cost me a round-trip commission of $10. So $525 – $480 – $10 = $35 profit over 10 months (short-term capital gain). It works out to an annualized return of about 8.6% on my initial $485 outlay. Not too bad, it could have been much worse. Of course, now that I sell they’re probably going to announce a huge buyout offer within a week.
I hope this shows that this blog is all about a learning process and one guy
sometimes often making questionable decisions, especially with this specifically-designated Play Money portfolio. I don’t profess to be anything else. I’ll share the good with the bad, and hopefully we’ll all come out smarter and richer in the end.
My obligatory disclaimer.