We are coming up on the end of the first quarter of 2011, and the Thousandaire portfolio has been picking stocks all year. Honestly, I hope you haven’t been buying what we’ve been recommending because we aren’t doing so hot.
The Hoff got food poisoning this weekend after deciding it would be a good idea to finish off a half-eaten Big Mac that he found on one of the tables in a local McDonald’s. Or maybe he just got sick from his girlfriend’s cooking. Either way, he was too sick to write a stock pick today, but I don’t want to miss investing today because the market is so low.
I’m going to dollar cost average another stock already in the portfolio this week and buy some more Maxwell (MXWL). I originally picked this stock and I still really like it, so I’m going to buy some more while it’s down 16.5% from where we first purchased.
Thousandaire Portfolio Performance
Speaking of being down, let’s talk about how the entire portfolio is doing overall. To be honest, we suck! We are down 6.00%^ on the year, while if you were investing in the S&P 500, you would only be down 2.56%.
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Now if you are new to investing, your reaction might be to sell everything, take your six percent loss and just be happy you didn’t lose more. That’s a very common, emotional response. It’s also a potentially stupid response.
If you think oil prices are going to keep climbing and the effects of the tsunami will destroy the Japanese economy, which will have a ripple effect on the world economy, then by all means get out now. However, if you think oil prices will stabilize and decrease now that there is a UN sanction against Libya, and you believe Japan is strong enough to rebound from the earthquake, then this is a great time to keep buying.
Stocks are on sale, and the more you buy at a cheap price, the more money you are going to make when the market comes back. This portfolio is investing more into MXWL, but I encourage you to look at your personal portfolio. If you see a stock in there that you love, there’s a good chance it’s selling at a pretty good price right now. Now might be the right time to buy some more.
Remember these words from the great Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.” There is a lot of fear in the market right now, so it looks like it’s time to get greedy.
Important to note that ALL ideas, thoughts, and/or forecasts expressed or implied herein are for informational and entertainment purposes only and should NOT be construed as a recommendation to invest, trade, or speculate in the markets.
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