“If you hang in there long enough, you get your day; and its even better.” -Eddie Vedder
My main goal is to build a portfolio of $1,000,000 in 1500 days, starting from 1/1/2013. Every month, I provide an update on my status. My goal for 2013 is to get my portfolio up to $672,750, from a starting point of $586,043. Time to look back on the first quarter.
- Days elapsed: 88
- Days remaining: 1412
- Gains: $14,258
- Left to go (2013): $72,449
Wow, its hard to believe that the first 3 months are done. Already, 6% (3/50 months) of my little experiment is in the history books. This is post #37. The time has flown by and its been a lot of fun. Enough jibber jabber though, let’s get down to business:
The first quarter was awesome for the markets! The S&P gained an incredible 10%, reaching an all time high on the last day of the quarter! Wow.
However, my holdings didn’t do so hot. The 1500 portfolio went from $586,043 to $600,301. This comes out to an increase of 2.4%. Compared to that 1st quarter market performance of 10%, I did flat. out. horrible. The horror, the horror.
However, it actually gets worse. Between 401(k) contributions and additions to the cash pile, I contributed $14,264. This means that I actually lost $6. Looking at it that way, I had a return of 0%. Whoah. I feel like a chihuahua that has been kicked and kicked hard, running off with my tail between my legs: Yipe! Yipe!! Yipe!!! No quiero.
Long time readers know that my horrible returns are due to my overallocation in Apple. In this quarter, Apple went from $553 a share all the way down to $442, dragging me down by almost $40,000. I have no one to blame but myself. If you have all of your eggs in one basket and that basket falls off the cliff, it’s going to be painful.
Long term, I’m optimistic. However, I’m not feeling so hot about the next 6 months:
- Apple has so much negative sentiment dragging it down, it wouldn’t surprise me if it continues to fall. I’m a bit surprised it hasn’t dipped into the 300s already. I believe that the company will be fine long term, but there may be rough waters for a while. If this guy is right, I’ll lose almost another $60,000 in the next 3-6 months. Yipe! Yipe!!
- The stock market is due for a correction. The gains of the first quarter can’t continue forever. Corrections are healthy and just a part of the normal investing cycle. However, I think that the market still has room to grow before the end of the year, just not so much in the very near future.
Am I worried? Nope. This is a long term experiment and I’m optimistic about the next 4 years. As a matter of fact, right now I’m more optimistic than ever. Mrs. 1500 and I had a long conversation this morning about our investing plans for the next 4 years. We are going to start acquiring rental properties very soon. We’re also going to significantly increase our investments in Prosper and Lending Club. Deep down we’re both entrepeneurs at heart, so we have other dreams as well. More later.
Some other random thoughts:
- I have almost put enough money into my 401(k) to get my full employer match for 2013. Since I have $300,000 in 401(k)s, I don’t max out anymore, preferring to put my money in after-tax investments.
- Our home in our despised neighborhood is for sale. With any luck, we’ll be on the road soon to a new and better place. When we do sell, we’ll not only buy a primary home, but also a rental or two. We want to provide stability for our children, so we’ll stay put for the next 15 years, when the littlest 1500 will be done with high school.
- Regarding the blog, I’m very happy to see Mrs. 1500, who was skeptical at first, really enjoying contributing to it. Her posts get more traffic than mine and I couldn’t be happier. I’ve heard that some men don’t like it when their wives are more successful than them. Not me. Ever. Surround yourself with great people who challenge you and you become a better person yourself.
- Finally, the first 3 months of blogging have been an awesome experience. The best part of it is connecting with other bloggers and readers who share our dreams and help us learn. It has been very cool interacting with each and every one of you. I look forward to meeting many of you in the near future, whether it be at FinCon in October or at Ale Asylum in May.
So, congratulations to the rest of you on a fantastic first quarter. If you get to the finish line ahead of me, save a beer! I prefer heavily hopped pale ales. Bonus points if it’s from Ale Asylum.
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