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.

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