Llamafolio tumbling in value
In theory, I would have been better off financially if I had never started the Llamafolio at all. If I had simply transferred the same amount of money to my money market account, I would have a higher net worth. How about that?
How to turn $3000 into $2946.22
I have invested a total of $3000 into the Llamafolio via Zecco. My initial $2800, and an additional $200 added later on. The current total value of the account is : $2946.22. That’s nearly $54 less than I put into it. Money that’s *POOF* gone - on paper at least.
How did this happen? Let’s take a quick look at the performance of each stock I own:
Bank of American - BAC
I purchased BAC twice, with an average cost of $37.5307 per share. The current price is $24.81 per share. Multiplied over my 15 shares, that’s a $190 loss on this single stock - ouch! Fortunately I have full confidence that BAC will rebound and end up well in the $40’s before another year passes at the latest. It’s painful to watch the stock continue to slide day after day, though.
BRT Realty Trust - BRT
I purchased BRT recently, and it’s pretty much flat. I’m up a buck fifty, and that’s a positive.
ConocoPhillips - COP
I was lucky enough to get in on COP at just $78.28 per share. The current price of $92.72 has me smiling - that’s a $101 gain on my measly 7 shares. I hate paying more for gas, but owning strong oil stocks sure helps ease the pain a tad.
Coca Cola - KO
What a stinker. I bought KO at $59.25, and it sits at $54.10 today. I haven’t lost a ton, but it’s just not doing what I expected. KO is a very strong company, and dividends over time will help ease the pain.
Pfizer Inc - PFE
I’m down $83 on Pfizer, and seriously considering pulling the plug. I haven’t yet sold a stock at a loss, so I don’t want to start. However, PFE sinks daily, and doesn’t really show any signs of a turnaround. I’ll likely just end up holding this to see where it goes. My initial investment wasn’t huge so it’s not the end of the world if it doesn’t pan out.
Perficient Inc - PFE
PFE has been a shining star in my portfolio. Time and again I’ve considered selling to lock in my profits, but held back. PFE did tumble a bit, but I’m still up $161 since the purchase - that’s 44%. I have high hopes for an even stronger increase here.
VASCO Data Security - VDSI
Though I’m currently down almost 5% on VDSI, I’m not considering a sale. If VDSI doesn’t double within the next year, count me surprised. Earnings are strong, and I think investors have unfairly beaten this stock down. I’m holding long-term on this one.
Conclusion
Sure, I’m down on paper. Big deal. I’m not really uncomfortable with any of my holdings, with the possible exception of PFE. Every other security I expect to see solid gains in over time. I’ll hold and watch the dividends roll in, and the share prices rise.
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June 30th, 2008 at 9:36 am
I am in the same (sinking) boat as you. But am holding on as well as the the tsunami of bad news washes by. I am more int tech, as opposed to financials, but am looking at buying some Jan 09 call options for some of the big financials.
Stay the course and the paper losses should turn into paper profits. Either, way $3000 can also be written off against your income if all goes to dust.
Andy.
July 1st, 2008 at 11:52 am
I’ve been afraid of tech since I started investing. I dont’ know if it’s paranoia or simply that I’m not used to the different sector.. but some of the P/E ratios are outrageous! I know they’re generally higher in tech… but yikes.
You sir, have brass balls for being in tech and staying the course. Then again, financials haven’t been a great place to be lately either
Part of the fun, I suppose. A bit of a roller coaster ride.