Skip to main content

A Look into Portfolio Diversification

Image result for stocks charts

I talk a lot about buying individual stocks over mutual funds because I am trying to teach you the basics of Wall Street.  Ironic that my next stock I would put my own money into would be T. Rowe Price (TROW) that actually is a fantastic mutual fund company that offers a variety of already pre-diversified funds.  I am however looking at the actual returns from the company though and the upward spiral they have had in the last 5 years.  I want you to go to, or any other place you choose to look up a stock and in the search type TROW (where you search for individual stock picks) on the site (s) it will show a stock chart you can choose 1 day, 5days, 1 year or 5 years etc.  In this case pull up the chart for 5 years this chart much like an example above is quite impressive.  While I will not get into the specifics at the moment of reading the graphs and strategies to interpret graphs and risk potential of a graph chart; I want you to get comfortable with searching around and understanding what it represents which is a history of previous performance.  Now go pull up the graph for all time, look at the sharp dip in 2008 and notice if you were looking at a 6 month graph at that time how scary that would look.  Of course you can see the big market hit in 2008 that it represents and how financial stocks took a beating but look at how T Rowe Price recovered.

Another thing that makes them very interesting to me is they pay $2.80 a share per year dividend.  So if you are retired or close to retirement you can get a quarterly check during the year as a bonus and still have the overall price of your investment going up year after year.

Many of the things I consider when saying look into this stock; is that it has solid investment potential I try to look at new sectors of the economy for us where we haven't looked at before.  Remember when we started with a REIT in Washington Real Estate Investment Trust (WRE) then moved into high tech with Nividia (NDVA), then to high tech / retail with Alibaba (BABA) on to Alison Transmission Holdings (ALSN) for manufacturing and RES Med (RMD) in medical and now T Rowe Price for a financial.  We are building our own diversified portfolio and in a sense creating our own mutual fund.  The reason for this is if one sector of the economy is performing chances are others are not, but over a 5-15 year cycle with each cycle really being around 8 years up and down you can be safe in knowing you don't have to move investments around to often and grow money over time.

Now if you are still really ski-dish about getting your feet wet buying an individual stock then look into the actual mutual funds of T Rowe Price.  You might even be able to see some of them in your companies 401K plans.  The reason you are seeing these in your 401K plan is because your administrator be it Fidelity, Merrill Lynch, The Principal or others have found these funds to be solid performers and a great track record over time to be wise investment choices.  If you never set off on an adventure with me or the rest of my readers here and buy individual stocks it does not mean that having 5-10 mutual funds is a bad investment choice.

Donations: Paypal: this is meant for entertainment and educational purposes only investments and purchases are your choice and I always recommend speaking with a licensed financial advisor before making any investment decisions.


Popular posts from this blog

Custom Made Masks ~ by Sound Box Graphics ~ Print your own design

During this Pandemic we need to help local businesses and support local artists, around the world. I am proud to advertise for friends of mine to help their businesses. You can trust an advertiser on because I know them or have an association to them.  Williamswallstreet is free and will always remain free to my readers. Williamswallstreet is supported through donations like yours to the PayPal below. WilliamsWallStreet does not collect money from its advertisers and all proceeds go directly to the small business. Thank You my readers make it a joy to continue writing this blog. Author William Staab Winner of Wall Street Journal Dartboard Contest March 2009 Guided Tours Around Norway Tailor made to your interests! Tom K Bjore Facebook:                                                   @ExploreMyNorway  @Explore MyOslo                                    Intstagram: @explore_mynorway   @exploremyoslo Check out this website for some great

Portfolio Check In Lets See How We Are Doing?

 Well I apologize, it has been awhile since I have written an article and checked in with the portfolio but I have been watching our stocks and must say we have been doing quite well!  The overall portfolio has increased by 25%.  Lets do a run down of where we were at last time on May 10, 2020 and the two stocks we added to the portfolio since then AYRO on 6/17/2020 and ORBN on 8/8/2020. Stock                                                  5/10/2020                     2/23/2021 Alibaba   (BABA)                                                         201.74                           250.45 Alison Engines (ALSN)                                                 37.45                             38.15    Amazon (AMZN)                                                      2380.50                        3,145.91 Ayro (AYRO)                                                                  2.69                               6.59 Evo Transportation (EVOA)                                       

Just Another Boring Bank Stock? ~ Not Oregon Bancorp

  I just happened too be browsing around looking for something; I can't remember what when I saw this little gem of  stock Oregon Bancorp (ORBN) now as we speak for $33.00 a share.  So I want to add it to our mock portfolio. It has so many things going for it which makes it a perfect little add.  First off it is a banking stock which we don't have.  Yes there is T.Rowe Price which is more of a brokerage financial institution, while Oregon Bancorp is a bank.  Selling at $33.00 a share it is easily affordable for you, me and the average investor to buy.  Oregon Bancorp is listed on the Over the Counter Pink Sheets.  In the old days on the New York stock exchange these shares did not sell all that often and were listed on actual pink sheets of paper that's why they are still called "Pink Sheets"    Oregon Bancorp just had a blowout quarter with their financials it seems the company is really doing things right.  I looked over several charts by them first looking at