Llamafolio First Stock Purchase
For my first Llamafolio purchase, I’ve decided to go with none other than Pepsico Inc, also known as NYSE:PEP. I’ll be “buying” 5 shares of Pepsi stock at the current price of $77.71, for a total of $388.55. Adding in the $4.50 commission from Zecco, and that’s a total cost of $393.05. That’s starting out with a 1.1% loss due to the cost of commissions. Remember, I’ll have to pay again when it’s time to sell.
I have some concerns about buying Pepsi at $77.71. It’s nearly at the 52 week high ( which is $79 ), which is certainly a reason for concern. However, the company has a pretty strong balance sheet. The debt level is reasonably low for the size of the company. I always look at debt levels, and am very cautious of a company that carries a large amount of debt.
As Pepsi goes up or down, I’ll keep tabs and decide if / when to sell. Hopefully this will be the first in a long line of successful Llamafolio purchases. After this purchase, I have $1606.95 remaining to invest.
**Update 12/26 – I have updated the share purchase due to the fact that Zecco does not allow purchasing fractions of shares.
December 28th, 2007 at 1:18 pm
First off, you need to copyright the term “llamafolio,” it’s a gem! I can see where Pepsi would lead you into the fold, they have a pretty solid and broad-based record. I also view a company’s debt ratio as a near-insurance policy… that might be overstating it a bit, but not much. Good luck with llamafolio, may your investments prove sound!
Jerry
http://www.leads4insurance.com
December 30th, 2007 at 8:05 pm
Haha I thought the term was pretty crazy sounding, but hoping that it will stick in some folks minds.
If the Llamafolio investments work on paper, then I do believe it will finally be time to venture into the world of using real money. Scary stuff but fun as heck too. Making money is one of the best hobbies ever.