Investment Ride-along (#8) – I’ve Made $30 in Two Months…

M1 Finance 2 Months

Better than a Savings Account!

Overall, I am up 2.10% of my cost basis and with a total return of $29.11. You could average that out to about $15 a month extra. Not a whole lot of cash, but it is still better than leaving $1755.13 in a savings account. Even the highest yielding accounts only have about a 1.55% APY. So, my performance thus far is: better than a savings account, but worse than the S&P 500, which shows a return of 4.66% since I opened my portfolio. However, my individual stock picks have shown a 5.77% return, which is about a 1% greater return than the S&P 500.

SP 500 comp.PNG

Don’t Put All Your Eggs in One Basket

Overall my defense stocks are still down with the exception of Boeing (up a pretty good 14.38% actually), but Boeing also does a lot of commercial work. Lesson: don’t put all your eggs in one basket. You can’t predict the future, so spread out your capital. You might be upset that you didn’t invest more in the well performing stocks, but did you know they were going to perform so well in the first place?

Earnings Broken Down and Plan Forward

Market Gains and Dividends

I am really fascinated with the concept of re-investing dividends, despite the better returns of Market Gains. To me dividends is money that you earn and if you re-invest those returns, you get more shares that earn you more dividends. This is the compound interest effect that many people investors talk about. I think most people don’t realize that you need stocks that pay out dividends to make this happen. With market gains, all of that can go away if that stock is valued lower at a later point in time. For this reason, I am going to remain heavy on REITs. Additionally, the $10 a weekday dollar cost averaging seems to be working out as it gives me a higher chance of buying stocks at a cheaper price. See you next time, happy investing!

Make $10 When You Start With M1 Finance

If you sign up with M1 and use my referral link here, you can get an instant $10 when you invest at least $100. That is an immediate 10% return (already better than my returns). Then, if you don’t like it, you can withdraw your money and keep the $10.

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