| Portfolios. When I see this word, I always picture someone dressed to the hilt and carrying a brand new brief case - perhaps a CEO or upper management executive type. Or, I envision this as a topic of conversation at many a cocktail party, "So tell me. Have you moved anything in your portfolio due to the recent Wall Street shake-up from several weeks ago?"
A-HA! Another bonus about becoming a stock market investor! Now I can talk about my kid, my broken clothes dryer, the extra weight that I can't seem to get rid of, and…what's in my portfolio!
You've gotta love it.
So…what is in my portfolio? Well, for now all I have are the stocks that I "purchased" through the Stock Market game that I'm playing. Hopefully, you've taken advantage of one of those games and have dabbled a little in "buying" your stocks, from last week's article.
I must admit that I originally thought I could get through this process without playing these silly games. But actually, their similarities to real-life investing were the true reason I was avoiding them. It really was overwhelming at first. But, I also knew that if I didn't force myself to get in there and get my hands "dirty" with phony money, I would never have done it with my own hard earned money.
If your intent is to honestly become an investor, please make sure that you dabble a little in one of the various Money Market games. Real-time online investing works exactly the same way. Take this opportunity to remove some of the mystery that may prevent you from actually following through with your investment goals.
Fortunately, the things we Moms know best are our own fallacies and foibles. I know how I operate, how I avoid things, and how I make it okay to procrastinate. Knowing this about myself, I jumped right in with both feet - sink or swim style. I floundered and flailed and never gave up. I'm getting comfortable with the jargon and I don't feel so intimidated, plus… I'm playing those games and managing my portfolio like the pros.
So…what am I dabbling in? Since I have an expensive kid, I've focused my play-stock picks on toy manufacturers, cereal makers, band-aid companies, anything to do with video games anything, and of course, since I'm a parent…aspirin companies for my headaches.
I'm not sure if these will be the companies that I invest my real dollars in, but I am using this game for much needed practice. I have also moved my pretend "stock picks" into my portfolio.
I've located a web site, Investment Hotlines Online Portfolios at http://www.invhot.com/portfolio.html that lists over 20 web sites that offer to help you track the performance and value of your stocks and mutual funds by creating a portfolio for free.
The advantage of a free portfolio is that you can see all your stocks at a glance, in one place. You can search companies with web pages that include a business summary, financial summary and a list of officers. Salaries of top management of the companies plus ages are typically listed. I was amazed at the salaries of these individuals, and at such young ages for some of them. It's really quite impressive.
I spent a little time looking at the business summary. This is a comprehensive summary of exactly what the company does - very informative. I'm also beginning to look at these companies with a "critical eye." I'm looking for a socially responsible philosophy statement and I'm looking for women listed in their top management personnel. Next week I'll address this issue in depth, but for now, this is the information I look for as I research various companies. You need to decide what it is you are looking for in a company profile as well!
Portfolio managers also give you additional information about your stocks that can be easily accessed through the click of a mouse. You can watch the ups and downs of your stocks, daily, weekly, or monthly.
My previous game-stocks were in a portfolio that I set up through America Online. This time, I've decided to use Motley Fool's My Portfolio at http://www.fool.com, but be sure to check the various services that are available to you. I've chosen the Fools because I've also signed up for several of their newsletters. After receiving their book, I've been very pleased with the information they have to offer novice investors.
The same disclaimer applies for the use of free portfolios as for the Stock Market Games. When you sign up to use this free service, you will be asked for certain information, usually name, e-mail address, state and zip code. The plus side of this is that many of these sites offer free newsletters about investing, in general. Time and effort in reading and researching will eventually pay-off for me. These newsletters come right to your e-mail inbox and can be very informative.
Since starting my column, I have registered with several of these newsletters, that you may also find useful. Most of the ones I read are geared towards beginning investors. In addition, when you join BUYandHOLD, they also provide a free newsletter with information and updates to their site.
Next week I'll look at social responsibility, ethical practices, and companies that give back to their communities.
Thank you for joining me
Joyce |
