Wednesday, January 21, 2009

Looking for one thing found something else

Was looking through my browsing notebook** and came across some investing information I wanted to look into. I was most likely watching Mad Money with Jim Cramer or,,, well do be honest I have no clue. I do watch a lot of investing and financial shows, so let's just say it came from one of them.

I do have an investment portfolio but it's quite small, under $200. My decision making process for choosing my investments is unorthodox and quirky. I consider myself to be a gut player. I do research my picks to a degree, but not like what the pros would recommend. I look more at the overall picture trying to find the next, for lack of a better example, WalMart. But I am also looking for stability and longevity--for example we will always need to deal with garbage, health care, education, and energy. But I digress. I started watching the financial show to learn and on of them mentioned this: "top 5 individual holdings should not be in the same industry." They suggest investing in the following way--local company-oil stock--a brand name blue chip--financial--and a speculative stock. So over the next few months this will be something that I will look into. With our economy as it is and with the results of the current election I feel there are some industries that will grow more in the near future; would be nice to be in a position to maybe capitalize on it even with my small amount. Currently I have money invested in the following:

  • MON--MONSANTO CO//Shares 0.5305//Market Value $42.23
    • Sector: Basic Materials
    • Industry: Agricultural Chemicals
  • NRG--NRG ENERGY INC//Shares 0.9260//Market Value $22.09
    • Sector: Utilities
    • Industry: Electric Utilities
  • RSG--REPUBLIC SVCS INC//Shares 1.4040//Market Value $35.86
    • Sector: Industrial Goods
    • Industry: Waste Management
  • RTK--RENTECH INC//Shares 44.5952//Market Value $31.22
    • Sector: Conglomerates
    • Industry: Conglomerate
  • SO--SOUTHERN CO//Shares 0.7631//Market Value $26.73
    • Sector: Utilities
    • Industry: Electric Utilities
  • VVC--VECTREN CORP//Shares 1.0058//Market Value $26.03
    • Sector: Utilities
    • Industry: Diversified Utilities
  • Total Account Value $184.16 (1/19/09)
Some changes to consider:
  1. Eliminate one of my utility holdings, replace with a local stock and/or a blue chip
  2. RSG merged with Allied Waste (AW) currently not actively investing, need to change that
  3. Reconsider my holding(s) in MON, ethics/morals in business may be a problem--if I do decide to drop must find another blue chip or financial to replace
Not a bad start IMHO!! I try to re-evaluate my holdings quarterly so I am due soon. I may increase my monthly investment to $25 from $20 and add another stock but not sure yet.

**You may be asking what my browsing notebook may be. Basically it's just a notebook I keep with me to write down anything that piques my interest. I may be riding in the car and a commercial piques my interest, I write down any web info mentioned. May be a news clip about something that interest me or something in a junk mail, or e-mail. There is no rhyme nor reason to my notebook just bits and pieces to help unclutter my mind.

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