The Elementary Finance No Hassle Portfolio

At a glance

 

GE- 200 Shares @ $11.75- Click Here to learn about this pick

HD- 100 Shares @ $22.81- Click Here to learn about this pick

BAC- 200 Shares @12.89- Click Here to learn about this pick

WEN- 400 Shares @$5.38- Click here to learn about this pick

MRO- 100 Shares @$33.48- Click here to learn about this pick

Status as of December 4, 2009:
+$1,577.00 (16.8%)

COMMENTARY (December 4, 2009):

It’s been a while since I’ve updated this page and I apologize.  The portfolio, much like the market has been moving sideways for a while.  Up for a while, correction, and then back up.  Financials have been an underperformer as of late.  Probably because of the big moves in them over the second half of the year.  Bank of America is well on its way to repaying the TARP which will free it from pay caps from the pay czar.  This will clear the way for BAC to pay their new CEO whatever they wish whenever they find who that is.  I believe that there are storms to ride out with BAC but it’s long term growth potential is very strong.  This is a $30 stock without a doubt.  The question is, when.

GE continues to be an underperformer.  It has been in a range and without real fundamental improvements in the world economy, GE doesn’t have a lot of upside in the near term but as we know, we’re in it for the long haul.  GE is a strong company and I feel strongly about the long term viability of this holding.

Wendy’s may be a sell not too long down the road.  I like the company but it has been dissapointing.  Of all of our holdings, I’m the least excited about this name.  The  company is strong and there is upside to this name but does it justify holding for the longterm?

Marathon Oil is a play not only on oil but the eventual recovery of natural gas.  Nat. gas has very little risk and a lot of upside.  When that will happen, we don’t know.  It’s a great company and I feel great about holding this name.

ABOUT THE NO HASSLE PORTFOLIO:

Let’s be honest.  No matter how often you hear that the stock market is easy to understand and get involved with, it really isn’t.  I’m not saying that it’s impossible nor am I saying that the average investor shouldn’t be involved.  Instead, I want you to make intelligent choices about how you do it.

If you enjoy business and love the thrill of the 24 hour news cycle and have a lot of time to read and research, you may be able to get involved in the more risky plays but if you’re like many; you have a job, a family, hobbies that you like more, and when you hear the word, “research”, you run the other way, then something a little lower in the maintenance category may be best for you.

Don’t worry.  Over the course of the next few weeks, we at elementary-finance are going to start a fund of 5 stocks just for you.  These stocks are not for the person who is going to watch them every day.  These are medium term stocks.  By that, I mean that we are going to hold these stocks for 1-5 years.  We don’t like the idea of holding on to a stock without watching it for decades but for many, short term stock trading isn’t appropriate either.  Medium term allows us to reinvest our money once a certain stock in our portfolio runs it’s course.  That will often be doubling in value or even tripling if we do it right.

The only research we are going to do is a little bit of reading on Yahoo! Finance and a view of the chart every once in a while.  These stocks will be from companies that you have heard of, they will pay a dividend, and they will be so undervalued that we can’t help but make money as we’re patient.  Remember patient means that we don’t care if over the course of a day or two the stock drops in value.  We are looking longer term.

THE VALUE OF CHARITY

There’s plenty of money to go around.  There’s also plenty of greed and greed never helped anybody.  Story after story is told all over Wall Street of those who were brought down by their own greed. 

I have a strong belief that it is our human duty to help those who are less fortunate than us.  Regardless of your views on welfare in America, taxes, and the other political debates, giving not only helps others but it helps us.  We are healthier people when we give. 

Most portfolio managers will charge you a fee for something like this.  In fact, making you 20% in less than two months is worth a hefty commission so I’m asking you to pay up.  Donate 10% of your earning to the charity of worthy cause of your choice.  Remember that you can write it off on your taxes so it won’t end up being 10% in the end.  My goal is that this portfolio will be so wildly successful that word of mouth will take over and will result in huge amounts of money being given to charity all over the world!