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Fund Performance

The main downside of investing in the market is that I now find myself constantly staring at the stock ticker. I guess the big part of it is the gambler’s high I get when I see how well things are doing. It’s the same feeling I got back during my poker playing days, when I’d pull in a big pot and make some money. However, in this case, the stakes are way higher. So I thought I’d provide an update on how well things are doing. It’s been roughly thirty days since our initial investment in Google and Visa, and we’ve bought a few more stocks.

Our biggest gain so far, which thankfully is the largest chunk of portfolio, is with Google. We’ve gained almost 25% from our initial investment in it. We also gained 23% in a company called DryShips, which ships dry goods such as coal.

Visa has been kind to us and has increased about 20% since we bought it, and we have strengthened our position on it (bought more stock) yesterday before the earnings report. It was a gamble in that the stock price could fluctuate wildly depending on the news. Looking at its past reports, I had predicted a strong report that would beat a lot of estimates. I guess we’re trying to recapture the magic when our Google stock had jumped when it released its earnings report. Anyways, the Visa report came out yesterday at 5 pm showing stellar gains. Not only did they increase their earnings, reduce their operating costs, and boost their market share, but they beat analyst estimates by a fair amount. Something strange happened which I didn’t quite understand, its share price actually dropped close to 6% on this news during after-hours trading. I’m not worried though, as the stock has rebounded back to its closing price before the news. I’m still investigating the cause for such a drastic drop.

We also picked up some other stocks too, some which have been doing really well, and others that aren’t doing so great. Due to the economic decline in the financial sectors recently, it looks like there are some really juicy stocks that are selling at bargain prices. We picked up Citigroup (The US’s largest bank, and the world’s largest corporation) last week, and it’s been up more than 7% since then. Citigroup happens to also have quite the juicy dividend (profits returned to shareholders) at 5%. We also bought some shares of TD Bank, which has grown 2% since we picked it up about 2 weeks ago.

Of course, not all of it can be roses as we have some stocks that have been losing value. We bought some Transocean, an offshore drilling company, that has declined about 1%. Cal-Maine foods, the US’s largest supplier of eggs, also dropped about 3% since we bought it. Though I’m not too worried, as both those companies will probably grow quite well in the long run. What’s nice about the egg producer is that it provides a whopping dividend of 10%.

So all in all, our portfolio is up about 11%. Which is a damn good gain in a span of 30 days if I do say so myself. Who knows how things will play out on the long term though.

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