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The How To Invest HQ Portfolio

Contribution, Purchase, and Sale History

DateContributionPurchases/SalesCash
January 2014$1003.29BUY: 5 Shares of LNKD @ $200.66$0.00
February 2014$990BUY: 44 Shares of PBPB @ $22.50$0.00
March 2014$1026.00BUY: 12 Shares of Z @ $85.50$0.00
April 2014$935BUY: 5 Shares of LNKD @ $187.00$0.00
May 2014$909BUY: 3 Shares of AMZN @ $303.00$0.00
June 2014$1136.00BUY: 2 Shares of GOOGL @ $568$0.00
June 24 2014$-1,681.68SELL: 12 Shares of Z @ $140.14$1,681.68
July 2014$0BUY: 5 Shares of AMZN @ $324.00$61.68
July 2014$936.96BUY: 6 Shares of LNKD @ $166.44$0.00
August 2014$967.4BUY: 14 Shares of YELP @ $69.10$0.00
September 2014$1,158.42BUY: 2 Shares of GOOGL @ $579.21$0.00

Note: All purchases and sales do not reflect a trading commission often charged by discount brokerages. I decided to omit this as it would skew the transaction count is low and it would skew the data early on in the experiment. After the 12-month mark, trading fees will be negligible compared to the total value of the portfolio.

Current Holdings

Last Updated Stocks Held (in shares)Price Paid Per ShareTotal Price PaidCurrent Price Per ShareTotal Value
August 31st 2014LinkedIn Corp (LNKD): 16$183.56$2,936.96$225.75$3,612.00
August 31st 2014Potbelly Corp (PBPB): 44$22.50$990.00$12.10$532.40
August 31st 2014Amazon (AMZN): 8$316.12$2,528.96$339.02$2,712.16
August 31st 2014Google (GOOGLE): 4$573.61$2,294.44$582.36$2,329.44
August 31st 2014Yelp (YELP): 14$69.10$967.40$82.42$1,153.88
Total Invested:$9,062.08Total Current Valuation:$10,259.39Total Gain:$1,197.31 (13.21%)
Weighted Total Investment:$4,459.09Total Gain:$1,197.31Total Gain vs Weighted Investment:26.85%
S&P 500 YTD Return:8.39%

*Weighted Investment Total is calculated by the formula (Investment Amount * Months Held / Total Months Elapsed). As an example, for the update posted at the beginning of March, the Weighted Investment Total was equal to (($1003.30 * 2) + ($990.00 *1) / 2).  The “$1003.30 * 2” figure represents the two months elapsed since the $1003.30 purchase of 5 shares of LNKD. The “$990.00 *1” figure represents the one month elapsed since the $990.00 purchase of 44 shares of PBPB. The “2” represents the total number of months elapsed since the portfolio’s inception.

The purpose of the Weighted Total Investment is that this number provides the average amount of money held in the portfolio since the beginning of the year. By applying the total gain to the Total Weighted Investment, we can calculate a more accurate year to date (YTD) return based on a percentage basis. It would be inaccurate to claim an annualized gain on a total sum the half of the money added to the portfolio was added in the last half of the year. This number will become less important as the portfolio reaches its second year and beyond, as the amount of new money added to the portfolio compared to the total portfolio value will be less and less significant.

Created in January 2014, this portfolio represents a live stock market portfolio. This page presents a real-life case study for investing in the stock market by purchasing the stocks of individual companies. The listings below are actual holdings currently owned by myself, listed at the time of purchase. The goal of this portfolio is to demonstrate to individual investors how one could go about investing into individual stocks on the stock market.

In order represent a realistic scenario for the average individual, the portfolio only started with just over $1,000. Each month, a contribution in the range of $500-$1,000 will be made and new stock will be purchased based on this contribution. This steady contribution will show how one can contribute to a market account invested in individual stocks over the period of time.

Coupled with each additional contribution, there will be a monthly post summarizing how the new contribution was used, why it was used this way, why particular stocks were chosen, what was sold (if anything) and finally a summary of the portfolio’s holdings. The text in the monthly column of the contribution table is linked to the monthly report for that particular month. I have detailed a list of likely targets for purchase over the year in this post.

Quarterly and annual reports will be issued detailing the portfolio’s performance and plans for the next quarter and next year. As these reports are created, links will be added to each report at the bottom of this page. Current holdings are also summarized in a table at the bottom of this page.

Notice: I am not a professional financial adviser nor am I certified to perform this function. This portfolio is designed to generate returns over the long haul – a period of at least 5 years. Short-term dips are to be expected, and investing in the stock market always carries high risk. Follow along with this portfolio at your own risk. I would recommend only using extraneous savings (not including your retirement account or emergency fund) for this purpose.

Quarterly & Annual Reports

No quarterly or annual reports have been added just yet as the portfolio is new. As these are created, they will be added here. These reports will also be posted to the homepage of the blog as they are issued.

Bookmark this page and check back regularly; this will be updated each month as the portfolio grows accordingly.

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