1500 Days to Freedom

Think different and escape the rat race.

Performance Update 8 of 50: August Appreciation

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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 in June 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 August.

August!
August!

August wasn’t great for the markets. The S&P 500 dropped 3.1%, but I managed to eke out some gains. My portfolio went from $752,915 to $762,667 for a gain of $9,752. Here are the details (as of 8/31):

  • Days elapsed: 241
  • Days remaining: 1259
  • 2013 gains: $176,624 (including my contributions)
  • Left to go (2013): Goal accomplished!

Screen Shot 2013-09-01 at 9.55.39 AM

Gains in a Down Market

Personal Capital
Personal Capital

Similar to last month, my gains were the result of my stock holdings. Facebook and Tesla Motors did particularly well this month, propelling my portfolio to a new high.

Note that my cash went down a bit. This is due to my ongoing home improvements. This stuff always costs more than you think it will. I’ll take a $10,000 hit in September.

Finally, my recent success needs to be put in perspective. Long time readers will remember how Apple dragged down my portfolio in the first quarter. Fooling around with stocks is a risky business that I don’t recommend for most people. I hardly ever buy stocks and do it only after very careful consideration. Sometimes, I’ll research a stock for years before deciding to purchase it. Anyway, I’ll post my entire portfolio soon as well as the reasoning behind each purchase. Stay tuned.

2/3 of the Year in the Bag

Can you believe that the summer is already over? What a year it’s been for the markets so far. However, we’re facing near-term headwinds. It looks like the beginning of the end of the government bond buying program is near. A conflict with Syria also looks like it’s right around the corner.

Despite this, I’m optimistic for the rest of the year. If I had to guess, I’d bet that my portfolio has a little room to grow before we see 2014. Bring it on!

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Comments

  1. Wow. Well done, 1500’s. Somehow squeaking out a gain in August is incredible considering most major indices were down 3% or more. As you say, I guess that’s what investing in individual stocks in exciting companies can do for you. You’ll certainly take the good with the bad. The last quarter of the year is certainly going to be interesting…
    Buck recently posted…September 2013 – Net Worth -1.0%My Profile

    • Yeah, it is a mixed bag. Like I said to the previous commentor, I’ve only purchased 5 stocks in the past 10 years. In most cases, it simply makes a lot more sense to go with an index fund. More later.//

  2. Nice! Glad apple is playing catchup for you after lagging (and falling) when the rest of the market was going like gang busters earlier this year. We’re enjoying the headwinds a bit, and hoping that we even get a bit more coming into Q4. What can I say, I’d rather get more shares for the same money when we’re in buying mode!
    Mrs PoP @ Planting Our Pennies recently posted…PoP Income Statement – August 2013My Profile

    • Apple has recovered, but is still lagging for the year. Facebook has been my superstar lately.

      I think we’re all going to get some strong headwinds soon.

  4. This is really incredible — congrats! It’s amazing you’re up almost $200k just in calendar year 2013!!

    Two things out of curiosity:
    1) When you buy individual stocks such as Tesla Motors, do you buy a significant position? I have little comfort level with individual stocks, so I would love to learn more about how you pick them and how much you invest in each stock.
    2) On 1/1/13 you had $6,503 in cash and the rest in investments. Was this 99% to 1% split normally what you stuck with or do you usually have a larger “emergency fund”? We are so conservative and keep way too much in cash, which we need to rectify…
    Brad @ RichmondSavers.com recently posted…Save at Least 20% of your Income to Live Within your MeansMy Profile

    • I usually buy small amounts of stock. My Tesla Motors position is somewhere around 100 shares.

      I now keep around 60K in cash. This is actually much more than I like, but we are looking to buy a rental house, so I need to keep cash on hand. The way I look at it, my portfolio is my emergency fund. If I hit a rought patch, I’d just sell some investments. I can’t stand earning 1% with cash.

  5. Great job. Amazing to reach your goal with 3 months remaining in 2013. I’m very interested in seeing your portfolio, looking forward to that post.
    BidAskDividends recently posted…BreitBurn EnergyMy Profile

    • Chart is correct. 60K is in cash. I don’t like having this much in cash, but we’re going to buy a rental property soon, so I need to keep money on the sidelines.

  7. Wow, my portfolio certainly didn’t see a nice increase like that, so congrats. Do you mess around with stocks as a hobby? I’ve thought about doing it recently. I don’t think id beat the markets but it sounds fun.

    • I do, but only in very rare circumstances. I’ve only bought 5 companies in the past 10 years: Google (2004), Apple (2007 mostly), Facebook (2012), Solar City (2013) and Tesla Motors (2013). Google was dumb luck. All the rest, I have my reasons for and I’ll post them soon.

  8. You may have to change the name of this blog to 927 days. You could hit your goal much faster than you had imagined. When I read these sorts of posts I see the momentum that having a large base of capital to work for you generates.

    The first million is the hardest. After that it is all downhill. That is what I have heard.
    Jane Savers @ Solving The Money Puzzle recently posted…Lady Driven And Less Than 100,000 KMMy Profile

    • I’m definitely not counting my chickens before they hatch. One big geopolitical event could tank the market by 25% in 3 minutes.

      I do agree with you about momentum though. Money makes money. It is fun to watch, but I have to admit that it scares me a bit too. I had low expectations for myself growing up and this is strange. I feel like an a-hole for saying that, but it’s true.

  9. HAHAHAHAHA!!! Sam says your sisters are gonna be pumped! Amazing. So is that lady that Facebooked you for little cash advance. 1500, I will sleep the sleep of those who truly feel good for others because they are living well and enjoying their lives because of this post. Carry on, 1500s!!!!
    cj recently posted…Speaking Your Language of LoveMy Profile

    • Sisters and facebook nutter will not be seeing any of my fortune! On the other hand, I just lobbed some money at Junior Achievement.

  10. I think you may have my portfolio mixed up with yours, Mr. 1500. 😉

    Wow and well done. What else is there to be said except thank you for sharing because it really is motivating to hear your story!

  11. Congrats on the progress. I’m actually looking forward to the taper for the temporary dip in prices it will bring. It’ll let me get a little more for my monthly contributions. Of course, I’m not on the 4 year plan which gives me more time to work through some market corrections.
    Micro recently posted…Less people are resting on Labor DayMy Profile

    • Thanks! This year has been nuts, so I’ll bet you get your correction soon! Maybe even tomorrow if the US starts lobbing cruise missles at Syria!

    • I’m not sure. Ideally, I’d like to have a multi-unit. Something like a duplex or 4-plex would be great. I don’t like condos because of association fees and special assessments.

      Yes, Tesla is off the charts! I’m a bit nervous about the near term prospects. I can see a big correction coming. However, I’m in it for the long term, so I’m just going to ride it out.

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  1. […] 1500 Days August financial update.   Mr. 1500 is a great example of how your money can work for you.   He has the monstrous power of interest and investment income and his investments are creating wealth for him.   My money is not really making any money for me yet but I am reading what Mr.1500 is doing and I am trying to build my wealth too.  ( https://www.1500days.com/performance-update-8-of-50-august-appreciation/ ). […]