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 was to get my portfolio up to $672,750, from a starting point of $586,043. I accomplished this last month and then raised my goal to $727,750 to account for the money I made selling our last home that I plowed back into the portfolio. Time to look back on the month of July.
July was the best month for me ever. My portfolio jumped from $685,926 to $752,915 for a gain of $67,089. I contributed $2,000, so my holdings appreciated by $65,089. I still don’t believe it. I ran through the numbers a couple of times to make sure it all checks out and it does.
Here are the details (as of 7/31):
- Days elapsed: 211
- Days remaining: 1289
- 2013 gains: $166,872 (including my contributions)
- Left to go (2013): Goal accomplished!
My Dirty Little Secret
How on earth did my portfolio do this? I have a secret that I’ve been very, very hesitant to talk much about. I sell Amway. Just kidding.
Here is the real scoop. While I think index funds should be the core of any stock portfolio, I also invest a little bit of money straight up in stocks. I don’t recommend this, but I have my reasons. That is a topic for another post.
My stock purchases are very few and even farther in between. In an average year, I may buy one or two stocks. Sometimes, I’ll think about a company for a couple years before investing. Once I buy, I rarely sell. I’m a buy and hold guy. I don’t mess around with options or anything like that either. Keep it simple.
Through a combination of dumb luck (buying Google at IPO) and spending many waking hours churning things in my head (ask Mrs. 1500 about how my brain is in a cloud many of my waking hours: “Huh, what?”), I’ve been a pretty good stock picker. My individual stocks have outperformed the rest of my portfolio. Again, this is a topic for another day when I’ll disclose all of my holdings and why I bought them.
The stocks* that kicked my portfolio in high gear were Apple and Facebook. Most of my Apple shares were purchased in January 2007 (when Jobs announced the iPhone) for somewhere around $90. The average share price I paid for Facebook was $29. As of this writing (7/31), Apple is at $452 and Facebook sits at about $37. Both had a huge month.
Other Random Thoughts
- If my gains hold, this will be the second year in a row where I make more money from investments than my job.
- While Apple helped me a lot this month, it has actually been a big drag on my portfolio this year. It is still down over $50 from where it started 2013.
- I didn’t really expect my stock portfolio to come on strong until the last quarter of the calendar year. I’m pretty optimistic about the rest of 2013, despite any action from the fed.
- Most importantly, while I’m thrilled with my performance this month, it really doesn’t mean much at all. There will always be ups and downs. Long-term performance is what really matters, not short-term gyrations. Check back in 2015 and again in 2020 and 2025. If I’m still earning great returns, be impressed then.
*I am NOT a professional investor. Don’t take any of this to be advice. Do your own research and make your own decisions.
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And I’m sure you’re not complaining that AAPL is up over $470 this morning? I know you said you rarely sell, but do you have sell points or profit taking points for each of your holdings? Just curious since we don’t so much individual stock investing.
Mrs PoP @ Planting Our Pennies recently posted…PoP Balance Sheet – July 2013
I’ll sell a stock for only 1 reason and that is when I don’t believe in the company’s potential anymore. Funny you mention Apple because this is how I feel with them now. They are a great company, but Samsung will copy anything they do and sell it for significantly less. Their moat (as Warren would say) is gone. Samsung is scaling the walls.
The amway comment made me laugh so hard in my cubicle haha I am really interested to hear about your stock picks, why you chose them, how much you receive in dividends and what you do with em 🙂 Sorry if that makes me too nosy, haha
You are taking advantage of a well positioned portfolio and well timed purchases where you didn’t wait for the market (buying apple early, and not selling facebook during the after IPO slump)! Good job.
Thanks! Yes, market timing is a bad idea. Buy strong companies and hold them for a long, long time.
Congratulations on the results! Do you have any suggested reads you can share with newbies like me who want to get involved in investing? I know there’s no magic bullet for great investing but I’d love to know some reads that you feel are worthwhile in investing.
Tara @ Streets Ahead Living recently posted…How to attend high cost events for free
@ Tara, three books (good, better, best) that I would suggest are “A Random Walk Down Wall Street” – Burton Malkiel, “One Up On Wall Street” – Peter Lynch, and “The Intelligent Investor” – Benjamin Graham. Goodluck!
BidAskDividends recently posted…Nestle SA
All good books! Remember that I don’t advise buying individual stocks. Most mutual fund managers don’t beat the indices and they are the “experts:” http://money.usnews.com/money/personal-finance/mutual-funds/articles/2012/10/12/study-active-funds-consistently-fail-to-beat-benchmarks
Mr. Money Mustache had a post that I recommend for 99.9% of folks: http://www.mrmoneymustache.com/2011/05/18/how-to-make-money-in-the-stock-market/
Big bucks! Why work when we got Obama and the Fed!
It was a really good July for me too. It’s when Chinese internet stocks started going ballistic.
I hope the good times last forever!
Financial Samurai recently posted…How To Know When To Take Profits In Growth Stocks?
Awesome! Selling Sina years ago was one of my big mistakes.
That’s an incredible month! I always like seeing other’s successes, especially with different strategies.
I love seeing your numbers (mostly because it keeps me from resting on my laurels!).
Done by Forty recently posted…Produce Haul
Ha, I do think my strategy is flawed. Don’t read too much into it! I need to write another post to explain my conflicted feelings!
Congratulations on your wonderful month. I am sad in a way as that means you may shut this blog down early as you are on target to hit your goal of $1,000,000 in 750 days rather than 1500 days. Maybe you would consider hanging around for us readers. Best wishes as you continue to plow forward. It is amazing what can happen when we have a plan that is written down with clear expectations and an attainable goal.
Free Money Minute recently posted…Why you should never buy a new car
Hi FMM!
Thanks so much for the kind comments! Remember though that this is only one month and I’ve had strong tailwinds at my back. The markets have been going nuts.
I really enjoy writing and learning from people, so while I don’t know what direction I’ll go in should I reach my goal, I’m definitely not going to shut up!
Congrats on the progress!!!
SavvyFinancialLatina recently posted…The Perfect Weekend
Great job! A 9.7% gain in one month is incredible. I’m biased (see my handle) but I second Renee’s comment about your dividends received, reinvestment plan, etc. Do you DRIP? Pool and reinvest as you see fit? Keep up the great work.
Rob recently posted…Nestle SA
Outstanding! Amway! HA!
There may come a time when I dip my toe back into individual stocks, but I’m hiding in my index fund cave for now.
I too am curious about whether you would shut up shop if this becomes say, the 978 Days blog?
No Waste recently posted…Where Stocks Are Headed Next (With Financial Blunder Bonus!)
Index funds are pretty much the way to go. Stocks are a very rare exception. All will be explained in time…
Oh, and writing is too much fun to quit! Dunno what I’ll do when I make my goal, but I have some ideas. 🙂
Hi Todd-
Ha, no Amway! Now, if I could just convince some of my relatives.
Funny you mention Apple because that is one I’m looking at selling now. When they came out with the iPhone, they knocked everyone else on their butt. Same with iPad. Now that everyone else in the world has copied their products, their moat is a lot smaller. I’ll elaborate in a post shortly.
An inspiring month for all, 1500!!! May August be as huge as a success. At this rate 1500 may lose a zero!
cj recently posted…Be a Crybaby and Miss Out on the Good Life
That is an insane month of gains, congratulations. Now you just need to take some screen shots and sell yourself off as an “expert” financial advisor. You will have the 1 million dollars in no time flat, lol. (I am in no way being serious here)
Micro recently posted…Work perks that save/earn you money
“I am in no way being serious here”
Ha, good! I hate giving stock advice. Only reason I posted any of this is that I want to be transparent and show why I had such a good month. One battle does not win the war though.
Congrats on such a great month!!! Hopefully things keep on going up for you and you can meet your goal sooner than later!
Amanda @ Passionately Simple Life recently posted…A Little Update…
Mr. 1500, you are kicking it!! Way to go. 🙂
Laurie @thefrugalfarmer recently posted…How to Pay off Debt: It’s About More Than Budgeting
Congrats on a great month! I need to get a bit of capital invested into some growth stocks but now isn’t the time for that with a home purchase in the works and the markets going gangbusters. Although they have started to pull back the last few days.
What’s your plan if you hit the $1M mark way early? Call it good then or work a bit longer to pad it some more?
“How on earth did my portfolio do this? I have a secret that I’ve been very, very hesitant to talk much about. I sell Amway. Just kidding.”
Great, now I have to go clean the coffee off my computer monitor. Thanks a lot!
Pretired Nick recently posted…The Pretired.org six month blogoversary
Congratulations on achieving goals of July. Those days do not seem far off when you can reach your portfolio within those 1500 days. Good going
Rita P @ Digital Spikes recently posted…How to get rich quick tips and actions
Wow, Mr. 1500. I am so happy for your short-term gyrations and even happier that you don’t sell Amway. How much fun it is to read your posts.
I think CJ will also get a few more slacks cut for him now that I know men are thinking about money when they say, Huh what?
Tammy R recently posted…Be a Crybaby and Miss Out on the Good Life
That was an incredible month, +$65,000!!! My portfolio is not yet big enough to generate these types of gains, but hopefully that moment is not too far off. Congrats on the gains and don’t forget to share some of that stock picking wisdom!
GamingYourFinances recently posted…Building Wealth: How to Become Wealthy