The How to Invest HQ Portfolio is a free public stock portfolio that can be viewed in full here. Each month, I add approximately $1,000 to real positions in the stock market and publish the results in this column.
June was an incredible month for the How to Invest HQ portfolio. With this month, not only is the portfolio finally in the green after a few initial mishaps, but the total weighted investment is now outpacing the S&P 500 for the year.
This month also marked the first true trades the portfolio has made, with the sale of Zillow and the purchase of additional shares of Amazon and LinkedIn. Read on to discover exactly how much the portfolio gained, the specifics of what was bought and sold this month, and why I decided to make these moves.
June 2014 Portfolio Performance
|Stock||6/2/14 Open Price||6/30/14 Close Price||Shares Held||Gain||Percent Change|
|NASDAQ: Z||$118.02||$140.14 (sale price 6/24/14)||12||$265.44||18.74%|
|Total Value 6/1/14||Total Value 6/30/14||Total Gain (June)||Total Percent Change|
June was by far the best month for the How to Invest HQ Portfolio to date. Making a gain of 7.79% in a month is a fantastic run, and not something I expect to happen on a routine basis. While every stock held by the portfolio was up, the large gain was driven primarily by Zillow (NASDAQ: Z). Z was up just over 18% when I decided to sell the stock at $140.14 a share. I then used those funds to add additional shares of Amazon (NASDAQ: AMZN) and LinkedIn (NYSE: LNKD).
2014 Year to Date Performance
|Last Updated||Stocks Held (in shares)||Price Paid Per Share||Total Price Paid||Current Price Per Share||Total Value|
|August 31st 2014||LinkedIn Corp (LNKD): 16||$183.56||$2,936.96||$225.75||$3,612.00|
|August 31st 2014||Potbelly Corp (PBPB): 44||$22.50||$990.00||$12.10||$532.40|
|August 31st 2014||Amazon (AMZN): 8||$316.12||$2,528.96||$339.02||$2,712.16|
|August 31st 2014||Google (GOOGLE): 4||$573.61||$2,294.44||$582.36||$2,329.44|
|August 31st 2014||Yelp (YELP): 14||$69.10||$967.40||$82.42||$1,153.88|
|Total Invested:||$9,062.08||Total Current Valuation:||$10,259.39||Total Gain:||$1,197.31 (13.21%)|
|Weighted Total Investment:||$4,459.09||Total Gain:||$1,197.31||Total Gain vs Weighted Investment:||26.85%|
|S&P 500 YTD Return:||8.39%|
With this month’s strong performance, the portfolio has managed to go from in the red to having a weighted return beyond the average return of the S&P 500. The weighted return value represents the average amount in the portfolio since the start of the year; given that I add approximately $1,000 per month, the average amount held by the portfolio per month year to date (YTD) is only a total of $3,472.13.
July 2014’s Purchases
|June Purchase:||Shares||Price Paid||6/30/14 Closing Price Per Share||Gain||Percent Change|
|NASDAQ: AMZN||5||$324.00 (Purchased 6/26/14)||$324.78||$3.90||0.24%|
|NASDAQ: LNKD||6||$166.44 (Purchased 6/26/14)||$171.47||$25.15||3.02%|
Two stocks were purchased this month due to the sale of Zillow combined with the typical monthly contribution: LNKD and AMZN. While the portfolio is pretty heavy in these two stocks already, they are the best-priced stocks held by the portfolio. GOOGL was already expensive when purchased and PBPB has yet to demonstrate that it was worth the initial investment.
Amazon was a stock very recently added to the portfolio; you can see May 2014’s post for details on why I chose this particular stock. LinkedIn is a stock that I have long championed but have not talked about in awhile. I am still very happy with the direction of this company. They recently opened the ability for most users to post content to the site through LinkedIn Publishing, a feature that is sure to spurn thousands of new articles being written, produced, and published to LinkedIn each day. This steady growing library of content should boost LinkedIn pageviews and stickiness, increasing LinkedIn’s bottom line in the long run.
Plans for July & August
Over the next few months, I will be looking to get back into Zillow if the price pulls back. I would likely enter around $120 and then purchase again at $110 and again at $100 if the stock ever fell to those prices. I will also be looking to add shares of GOOGL and perhaps enter into a new position in the mean time.
Later this month, I will also be posting the quarterly report for the How to Invest HQ Portfolio. This report will include performance of the portfolio over the last quarter, detailed analysis of each current position, and more detailed outlook and plans for the rest of 2014.