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 has been absolutely brutal over the last month. The DOW has lost just under 5.5% over the last 30 days. It’s certainly taxing, and this is the time where an investor gets tested. My long-term view is unvarnished and I’m still set on my goals. My vision for my future is just as clear as it was last month before the dip.
I’m looking at the market dip as an opportunity to purchase and increase my holdings. In the meantime, my portfolio value has taken quite a hit, as many other investors’ portfolios have as well. In five years, this won’t matter. However, for this month’s report it does.
The current market value of the Freedom Fund currently stands at at $35,816.48 as of market open today. This is a very small increase from my last published value of $35,267.51. The only reason the value has increased is because of my additions to my Telefonica position and the initiation of a position with ConocoPhillips. If it weren’t for these purchases, the portfolio value would be down.
Overall, I’m very excited for the future. I’m actually glad the market dipped. I think equities were getting a little ahead of themselves and values were becoming hard to come by. I think values are a lot easier to find when the DOW is below 12K. My portfolio’s value is hurt, and my net worth statement isn’t as glorious, but that’s ok by me. I’m a net buyer, so a flat or declining market actually works to my benefit.We’ll see where the Freedom Fund stands next month.
How are your investments doing?
Thanks for reading.
Hi DM
The U.S stock market has been pretty stable in my opinion compared to european stock markets.
http://www.kauppalehti.fi/5/i/porssi/porssikurssit/indeksi.jsp?indid=OMXHPI&days=90&x=18&y=13
OMX Helsinki dropped from 7500 points to 5500 in 3 months.
http://www.kauppalehti.fi/5/i/porssi/porssikurssit/indeksi.jsp?indid=OMXHPI&days=1825&x=23&y=15
Here is another chart where it shows that lowest was 4200 points in 3/2009.
I sold recently some position that I bought during 2009 dips so my whole portfolia is -33% negative. Those stocks I sold made some nice profits and I kept those red colored stocks that are paying dividends.
Going to add some position with those companies whose Q2 is better compared to last year. Oddly those stocks still dips heavily.
Instead of talking to myself, I thought I’d share my thoughts with the readers of this blog: On days like today, my pain is mitigated by knowing that 99% of the companies in my portfolio are top notch, dividend payers who aren’t going to disappear. As long as I continue to make income, I can always dollar-cost average into these stocks.
With these top companies (like MCD and JNJ) lower prices are a gift! And you only lose if you sell for a loss. The stocks mentioned on this blog are meant to be long term plays. So you it’s good to keep a long term perspective. Don’t join the herd and panic.
By contrast, speculative stock plays are the ones that get the most burnt when the stock market corrects in a such a big way. Forget those for the most part. They’re exciting but not worth the risk.
Ok, I feel like I”m spouting clichés but they’re all true.
-J
Shean,
What do you think after today’s 512 drop? The markets have been tremendously resilient through all the stumbles in the economy. It seems that armor is starting to wear off a bit.
James,
Definitely do not join the herd and panic. We all lost a lot of money today, but that loss is unrealized unless you sell. Times like this is when it’s important to remind yourself of your game plan and make sure you have cash on hand for emergencies. It would be a shame to have to sell something in this market. Stay the course and you will be rewarded.
Stable blue chips are where it’s at. I added to my holdings with CVX today, albeit in the morning when the drop was still in its infancy.
Did you take advantage of the market drop today?
DM,
Wait a few days and dive in but discipline of monthly investing shud go own -rain or shine.
Inq
Hi Dm
Dips makes good oppurtunity to buy expecially blue chip companies.
However trend is your friend. In my opinion if stocks falls its gonna fall for certain period and I believe this is not yet over. So Im gonna wait bit and see when is good oppurtunity.
Most who reply here talks about good companies but sometimes we also do bad decicion to buy some company that look lucrative but is after couple years crisis company etc. Enron, AIG
in my case Outokumpu and Nokia. They were good back couple years but now ….arggghhh
To me there is 2 way to make money in stocks.
1. Buy low sell high
2. Dividends
If stock dips 50% it need to rise 100% to get back where you bought it. Overall I think you wont lose much if you wait couple days more. I started with stocks during beginning of 2008. It taught me not go heavily on stocks in 2-3 buys but rather 7-9 buys per year.
So summa summarun my tactics will be 1k 2-3 stocks per month only if company did better than last year.
Mantra,
I’m back brother..It’s been great catching up on your posts. Keep it up,
DP
Inq,
You used one of my key words…discipline. I believe in it through rain and shine, just like you!
Take care!
Shean,
I buy through highs and lows in a DCA strategy. It’s definitely no get-rich-quick-scheme and smart/lucky/trained traders can make a lot more money than me. My best “skill” has nothing to do with trading. I’m simply good at sticking to a plan and I’m also very good at making sacrifices others are unwilling to make. I feel those things will put me at an advantage. I’ll likely never be an all-star investor. But, I’m not looking for riches. I’m looking to retire early. If money was the end-all be-all in life for me, I’d work until I was 70. By choosing to leave the workforce early I’m giving up way more money than most people will ever make investing.
Keep in touch!
Partisan,
Good to see you again brother. Glad to hear you had a good time in Mexico. Snorkeling sounds like a lot of fun.
Keep in touch!
I’m also excited for a market dip…I hate to see more economic problems, but I love to see the DJIA drop below 12,000. Maybe it’ll even break 10,000 like last October. Fingers crossed!
Pig,
My fingers are crossed with you. I only wish I had more capital, but alas I’m usually pretty close to fully invested based on my extremely long-term horizon. I may have enough capital for one more purchase this month. I’m going to publish my recent buy next week, as I increased my holdings with Chevron on the big drop last Thursday.
DM, great blog. I have been investing in dividend growth stocks since 2008 and enjoy reading others who are on the same journey. I am a little surprised that your Freedon Fund Update focuses on the value of the portfolio instead of the income it generates. If your objective is to get to a point where your growing stream of dividends generates sufficient income to cover 100% of your expenses, I would think the Freedom Fund Update would instead focus on how much annualized income it is generating. Just a thought. Keep up the good work!
Scott,
I appreciate the compliments and thanks for stopping by and commenting. I’m glad you enjoy the blog!
As far as the dividend income, I have a separate series of articles that reflect my dividend income progress. You can find that under the “dividend income update” labels. The Freedom Fund articles reflect the portfolio in terms of overall progress, value and positions. It also is a time for me to reflect current feelings on where it was and where I want it to go. I could also include the dividend income as well, I just didn’t want to double post that.
Keep in touch! 🙂