Monday, June 16, 2008

Warren Buffett here I come

I am now a stock trader. Well, not really trader per say, more of a stock ‘buyer’. Reason being because I have bought a number of stocks and haven’t really SOLD any yet. Overall, my stock buying has gone pretty well so far. After a week in, I am about 2% up. I’d settle for 2% every month, so hopefully that means that I am in store for 104% returns year over year.

Picking the stocks was a LOT harder than I thought that it would be. I was continuously second guessing myself as to which stocks to buy, what percentage of my portfolio to hold, and when I should ultimately sell. After many hours of thoughtful preparation, here is what I ultimately ended up with and why:

  • Pepsi (PEP): Pepsi has shown great share growth over the past 4-5 years. This stock is my long term value gainer.
  • Bank of America (BAC): I feel that the bottom is near with the bank crisis. Therefore, since BAC is trading at its 52 week low, there is a lot of gain to be made here. Additionally, BAC has a massive dividend at $0.64 quarterly.
  • Procter & Gamble Company (PG): Another dividend purchase here. While not as BAC, this dividend should ensure that I can realize some sort of income in the years to come.
  • Target Corporation (TGT): Since the money that I used to buy these stocks is really OUR money, my wife had the most say in this one. Target too is near their 52 week low, and since the economy I feel is on the upswing, people will start to go back to Target in droves.
  • Caribou Coffee Company (CBOU): Caribou is my long shot stock. I am not sure if I will ever be able to make money on this one, I just hope that I don’t LOSE money either.

Hopefully those will make me millions and I can retire on my own private island.