Single Stock Ninja: Round 1

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Wait What!

So I decided to start a little experiment on picking a few single stocks to see how they perform over time. That’s right I literally invested money to track and have fun for my blog to see just how well they do long term compared to a simple index fund. By no means am I giving up on index funds by a long shot.

via GIPHY

My Single Stock Ninja Picks!

Below is the stocks I picked with my Ninja skills…

• BRK.B
• AAPL
• FB

I only picked three so far and I have thought about adding 1-2 more so a total of five at most for a longterm hold position. I originally also had a small position in American Airlines and Carnival Cruise but decided to sell those rather quickly as It would not be a great buy and hold for this experiment. At this point, I have only invested $2,000 in total and have thought about investing more but as of this post, I have not done so. But we will see what the future holds.

But What Else?

I highly suggest if you have debt check out my Debt 101 BluePrint. Don’t forget about my Investing 101 BluePrint as well.

My Single Stock Ninja Method Explained…

I literally just looked at the top 20 companies in the S&P 500 and picked ones that I loved as a company and thought they have longterm potential. I know I am a freaking investing genius.

The Returns

Let’s get right down to the math. Honestly, I take emotions out of finances as much as I can so the numbers are my jam. I bought these on June 22nd via M1Finance. I love M1Finance for its user-friendly website and fractional shares!

Invested

• June 2020 – $2,000
• July 2020 – $0
• August 2020 – $0
• September 2020 – $0

Total – $2,182

ROI – 13.9%

I’m thinking I will update this every quarter or so often just to keep everything transparent and see how far this fun experiment goes.

The Myth & Truth

I think there is a huge myth behind higher risk equals higher returns with investing. This mindset I have seen with young, old, and even middle-age people. I have tons of friends that always ask me what companies to invest in. Even after I tell them I don’t like investing in single companies they still ask me what company they should invest in. As I type this post out I am a few thousand dollars away from a $300,000 liquid portfolio that is 99.9% in simple easy index funds.

The truth is I would assume that my index funds will do better long term. As I really am not an investing genius and neither is anyone else. Well, maybe there is that rare 1% that is. If these stocks do beat my index funds it will be sheer luck.

Let’s see what tomorrow holds for us…

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