Sunday, October 2, 2011
Freedom Fund Update - October 2011
Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it's aptly named. My portfolio is my way to freedom; freedom from working at a job I don't enjoy to purchase goods I don't need to impress neighbors I don't care about.
The market's volatility continues as we wind down the summer and enter fall. I think large and rapid swings in the markets are here to stay, especially as the eurozone's debt woes continue. There are a lot of reasons to stay in cash and hide under a rock. The housing crisis continues, there are experts that believe another recession is unavoidable, and the unemployment numbers continue to depress economists and investors alike.
With all the bad news abound, it must be hard to continue to invest in equities as a major drop in the market must be just around the corner. Well, I'm here to tell you that my journey is still on course and I continue to dollar cost average my way into dividend growth equities month after month. I believe that this is fundamentally a wonderful strategy to build wealth over the long haul. There will be difficult times ahead, and at times I may even wonder how I'll stick to my guns. I will stick to the plan because if you fail to plan, you plan to fail. If you follow the news and move your money around left and right you'll never go anywhere.
The current market value of the Freedom Fund stands at $40,298.47. This is a very nice increase since the last published amount of $37,453.44. The big boost came from not only my recent purchase of Aflac (AFL) stock, but also a big increase in the price of my holdings of Harleysville Group (HGIC) due to their acceptance of a buyout offer from Nationwide at $60 per share. HGIC stock is up 118% over the last month. Nationwide is on my side! As I mentioned before, I'll likely be taking the profit from this holding and reinvesting it where I see fit. I'll make sure to update all my readers as those transactions are made.
I am currently invested in 18 positions. This is an increase since last month, where I was long on 17 positions. The additional position is Aflac Incorporated (AFL).
I'm extremely excited to post this update. On my last Freedom Fund update, I was optimistic that I would surpass the $40,000 mark before the end of 2011...but I didn't expect that to happen quite so quickly. Through a combination of living frugally and regularly investing my savings I have achieved that goal much faster than I anticipated. We'll see how fast I can get my fund to $50,000!
I'm very pleased with the way the Freedom Fund is progressing through 2011. My first published amount of the fund back in March, 2011 was $26,735.65. So obviously, even with violent and frequent swings in the market, it's still possible to build wealth through smartly living below your means and investing in undervalued or fairly valued companies.
How are your investments doing?
Thanks for reading.