August 30, 2007

Tonight, we were given the assignment to “purchase” a portfolio of $100,000 worth of investments to monitor over the course of the semester. I have a few ideas for some strategies to play with, but for now, I will base my portfolio on my actual (real-life) investment portfolio, with a couple of exceptions. First, a fraction of my real investments are in illiquid assets (real estate and commodities), which are “not allowed” for the assignment, so I will not consider them. Secondly, about half of my remaining investments are in a managed account, which I know only the general composition (essentially a blind trust), so I will not take that into account for my base investments. Finally, a number of my stock investments are stocks which I would not consider good choices to purchase at this time -- In the “Buy”/”Hold”/”Sell” scheme, they are “Hold”s.

So, to start, I will take about half of my $100,000 and distribute it equally among the stocks which have the largest remaining share of my real portfolio.

Action	Symbol	Amount	Price	Extended Value
BUY	AAPL	73	136.25	9946.25
BUY	BAC	199	50.21	9991.79
BUY	CAT	134	74.66	10004.44
BUY	CVX	115	87.19	10026.85
BUY	XOM	117	85.40	9991.80
Deposit	(cash)			50038.87
Market	DJIA	7.5536	13,256.78	100,000
Market	NASDAQ	38.9818	2565.30	100,000
Market	S&P 500	68.6031	1457.66	100,000