The Writer’s Coin

I have a Roth IRA that I run myself through Scottrade. I used to have a taxable account with some money in it but I folded it and focused on my Roth. As of now I do not own any stocks anywhere except for my one Berkshire Hathaway B stock inside the Roth.

But I still love stocks and investing, so I have a mock portfolio that I’ve kept for the past couple years or so. I don’t add stocks willy nilly to it, I really think it through and decide to buy in based on some of the principles Warren Buffett espouses: a great business at a good price and buying with the idea of never selling.

Let’s take a look and see if we can’t learn/regret/cry over some of my fake buys:
(for those of you that aren’t familiar with a mock portfolio, it’s just a fake way of buying stocks. Some people use internet software to track it but I just type out when I bought a stock, at what price, and why. It’s a great way to practice before using real money, especially when you do it for an extended period of time)

10/20/06
Bought BRKB – 3328 Finally, after almost doing it for real but it’s been going up like crazy (from 3000) so I didn’t, waiting for the depression to hit.

The Story: That’s funny because I finally purchased it for my Roth a few months later when it got up to 3600ish. Today? In the $4500 range after a few incredible run ups recently.
Analysis: None. This is a stock I own and will never sell. Regardless.

11/02/06
LTM – 50.16, finally, looks like it still may grow. #1 numbers aren’t so hot but I know this company and the industry looks good long term. I could’ve gotten in at 36ish last year, oh well. (NOTE: I’m seeing this recommended all over, a pick here and there, I had this at 35!!)

The Story: I went to my first Life Time Fitness gym a few months before that and I was blown away. Huge facilities, child care, new machines, pools, activities: it’s like a summer camp for people of all ages. The niche? Suburbanites. M’s sister loved it and she told me all about how great it was for people with kids. This was around the time I read Beating the Street, so I was all feeling all Lynchian too.
Analysis: This was a textbook deal: I knew the company, had read the financial statements, read about the CEO, and it wasn’t a very well-known stock back then. Especially since it had been at 36 when I first fell for it. Today it’s at 50.87 after getting up to $65 and the whole world finding out about it. With the markets being so down, a perfect time to pull a time machine and buy at the price it was at a year ago.

Let’s do one more for now:

Mar. 21
AAPL, read a good article the other day about how this is going to be their year. First Apple TV, which came out today and caused a $2 boost, then like three other new products (including the iphone) that should boost the stock. Yes, it’s expensive, especially after the huge rise today, but I’m going to throw it in as a safe, one year deal. In at 93.87.

The Story: This is the one where I show off. The article I mentioned was on MSN Money and I remember it vividly. It was very logical and straightforward, very un-Cramer. The Iphone looked so cool at the time, but no one knew if it would really take off. I know, I know.
The Analysis: You know all about this one, it’s at $163 and expected to reach $200 within the next year. These are the ones where you go “Ohhhh I was right! I should’ve put everything I had into it!” Yeah, umm, no. Don’t ever do that.

Hope this was fun, I’ll be looking to do more of these in the future.

Tags: mock portfolio