So what are we talking about?
Just this….
Head on over to Money Pros Index Fund Challenge!!!
The mechanics of the Money Pros challenge are simple:
Invest a fantasy $1,000 in three stocks, and see how they do in the course of the year. The tracking spreadsheet will be modeled after Sharebuilder, with fractional shares fully accounted for after dividend re-investment. The stock values will be dynamically refreshed in the spreadsheet, so it will be fun to track progress in real time.
Picking stocks can be so mind-numbingly boring and time intensive, with some investors poring through SEC disclosures, financial statements, forecasts, on and on. With this challenge, there’s none of that. If you want to go with your gut, do it. If you got good service at a restaurant chain and you like their decor, pick ‘em.
My own stocks picks are:
Vector Group (VGR) – People still smoke and want to live in New York City. Occupy Wall Street hasn’t done much to dislodge chain-smoking stockbrokers from their expensive Manhattan apartments, so I’m betting on a company that’s got their fingers in both smokes and real estate. VGR’s current 9.16% yield and once-yearly 21:20 stock split say “Pick ME!” in any language.
AmBev, or Companhia de Bebidas das Americas (ABV) – After a hazy visit to a Sao Paulo bar, I can personally confirm that Brazilians are drinking boatloads of beer. More on this subject to come in a future post. Blow the foam off a frothy 4.14% yield, I think this one’s got legs.
Senior Housing Properties (SNH) – Americans are getting older, and ungrateful kids will need a place to stash their whiny Boomer parents. With a yield of 6.88% and a healthy balance sheet, will SNH clean up in the competition? It “Depends”.
No telling what 2012 will be like. It’s presidential election silly season. The Europeans aren’t quite done with papering over their debt mess, and neither is the U.S. for that matter. Goldman Sachs is bullish on commodities, while the employment picture is murky.
Here’s how the whole 101 Centavos Dividend Model Portfolio (now there’s a mouthful!) is faring, up until Friday at least:
Despite Silver Wheaton having executed a neat crash-and-crater, the Model Portfolio is up 4.59% from inception (versus 1.74% last month). Still somewhat bullish on TNK, by the way. Their practice of executing long-term charters should see them through this period of overcapacity.
Full disclosure: I own all of the above stocks, and have no plans to sell. Need we add that none of the above is meant to be investment advice? Neither the stocks featured in the MoneyPros Index Fund Challenge or my own Model Portfolio are recommendations to buy or sell anything. Really now, you’d have to have rocks in your head to think otherwise.
So, in conclusion, head on over to Money Pros Index Fund Challenge page and enter your own three picks.
Readers, do you have any favorites? Are you bullish on 2012? Why or why not?
As I already commented on Joe’s blog, I may be participating in this. It does sound interesting
Roshawn @ Watson Inc recently posted..4 Things To Stop Doing With Your Finances
This is so intriguing to me. I would be the person picking stocks based on decor, but I still think I am going to participate. This is e a great opportunity to learn more about the market and I like reading the reasons other bloggers are picking their stocks.
And thank you for the chuckle with Depends.
Niki recently posted..Thirty
Hi Niki – my first draft was a little more graphic. TMI. I’m glad I edited.
VGR sounds like a stock I need to look into.
retirebyforty recently posted..Enter The Money Pros Index Fund Challenge 2012
I’m in!
Six Figure Investor recently posted..How To Move Cash To Your Broker
I went ahead and signed up. It doesn’t look like the stock prices are correct in the spreadsheet but I’m guessing that will be fixed when the challenge actually starts.
Andy Hough recently posted..How Much Does Individual Health Insurance Cost?
Hi TFM – you’re correct, the quantities and stock prices are not quite right, but will be fixed soon.
I think the only ones I’ve heard of on your list are Altria and Silver Wheaton. Nice work putting together that portfolio! Those dividends add up nicely! -Sydney
Untemplater recently posted..When Is The Best Time To Have Kids?
Interesting challenge heard a lot lately on many blogs. Since you own the three in reality so all the best in beating the index.
SB @ One Cent At A Time recently posted..4 mins saved me $40, Thank You Chase!
I’ll be following this challenge in the coming days. Good luck!
jim syyap recently posted..One reason why your site’s bounce rate is so high
Thanks for the well wishes. Don’t hold back on joining the challenge!
trying to pick individual stocks is a fool’s game and can only lead down a trail of tears. I’m a confirmed indexer with Vanguard and those funds do the heavy lifting for me:
http://jlcollinsnh.wordpress.com/2011/06/14/what-we-own-and-why-we-own-it/
that said, I’m also a slow learner and so still play a bit. Had a good year in 2011 mostly riding the current dividend stock fad to some nice capital gains. Also had a fast and profitable trade in NFLX.
Going into 2012 I’ve taken my profits on those and my only individual stock holding now is RAI, for some of the same reasons you chose VGR.
Intriguing selection you have there with its 9+% dividend. But its 168% payout ratio makes it too scary for me.
jlcollinsnh recently posted..Muk Finds Success in Tahiti