Yesterday, I sold off the last of my shares of the individual stocks I bought under my old strategy.
I then purchased the first share of stock in my new portfolio I am playfully calling “The Brandon.”
The Brandon is going to be a portfolio of stocks meeting certain criteria that I will manage and attempt to grow.
Now, if you have read any of my previous posts, you already know that I do not invest huge amounts of money in individual stocks. Why? Because I don’t have huge amounts of money to invest.
I am just a guy who makes a very average wage each month and has learned how to invest in stocks by doing. (That means I have lost money by doing the wrong things and hopefully learned my lessons.)
I am currently on a very strict monthly budget, so I don’t have a lot of money to devote to this portfolio. As a result, I will slowly acquire shares as my budget allows.
This portfolio is very much an experiment or an exercise to test what is possible to achieve on a very limited investing budget.
My hope is to prove to myself and others that anyone can start investing with very small amounts of money and see positive returns.
The rules of The Brandon:
- The company must have a strong track record of business success. In other words, a brand name.
- The company must be sound financially.
- I must be able to understand the company’s business. I can understand what a name brand product or retailer does to make money. I have trouble understanding the growth potential of a company that does business in a sector I don’t know about or understand.
- The stock must be considered undervalued with significant room for growth in the next 12 months. Only stocks that are well below their actual value will be bought.
- Stocks will be bought across a variety of sectors for diversification purposes.
I think this is going to be a fun and hopefully profitable experiment.
In my next post, I will detail the first 2 additions to The Brandon Portfolio.