I am excited to kick off by saying this is the first stock related post!
Second and most importantly, I must add a disclaimer:
DISCLAIMER: I am not a paid professional and am not profiting from this information given. Investing has considerable risks. Do your own research, this content is intended to be used for informational purposes ONLY. It is imperative to do your own analysis before making any investment decision based on your own personal circumstances. You should take independent financial advice from a professional in connection with or independently research and verify any information you find in this post and want to rely on for the purpose of investing or otherwise.
I started investing in the New York Stock Exchange (NYSE) in 2017. My thought process was to think and project forward about the companies that would grow and lead in the future. Companies in the technology, renewable energy, natural gas and heat, transmission lines, and water sectors. This is just a few of the myriad of sectors to study and invest in. I also got read into the ETF and REITs.
Real estate investment trusts (REITs) are companies that own and operate real estate to produce and generate income. Investors can purchase shares in REITs, which represent ownership of an individual real estate company, just like regular stocks.
An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can.
I wanted to make a comparison between how your money grows in a savings account versus the stock market. The national average on savings accounts in America is 0.23% APY. For a quick and simple example: 0.23% of every $100 in your account would accrue $0.23. Every $1,000 would accrue $2.30 and so on. However, with the advent of online banking there has been more appealing "deals" for the consumer.
Searching online for banking leaves the consumer with the option of a high yield savings account which typically pays 20-25% more than the national average. When you look into these banking options you want to consider the following factors:
- interest rates
- minimum balance requirements
- any possible account fees
- any possible end date for the advertised deal
The typical range for annual percentage yield (APY) for the high yield savings account is 2.7-4.5%. Once again, pay attention to the fine print in case your advertised rate changes, it is likely to go before going up or staying as it is. Using the highest figure of 4.5% for our example, with $100 that gains you $4.50 per month, and with $1,000 that gains you a total of $45 annually.
Unlike bank accounts, the stock market can give you basically an infinite number of increasing percentages on your money. It just does not happen overnight! You must have done your due diligence and research and strike at good numbers. Sitting out will never get you to financial freedom. Think of your favorite store, or wherever you like to purchase your favorite things, doesn't everyone love a good sale? This could be a beneficial mindset on investing in the stock market. When you target and invest at good numbers and stay the course, you will thank yourself in years from now. Dollar cost averaging is a very well-known method that investors starting out may want to follow.
If you head over to the store tab and check out my eBook which discusses dollar cost averaging and plenty other valuable investing information. The great thing about that method is that a lot of investing brokerage apps allow you to invest $5 at time!
***My notes for this blog was recorded on February 07, 2023, which will reflect the prices in the market on that day***
To close things out, I wanted to give 4 of the stocks I invest in, including the times, dates, and prices, to show how the gains and/or losses in a certain time period. Some of these may sound familiar, but I will list them here and dive a little further into them below.
- Nike (NKE)
- Coca-Cola (KO)
- Vanguard S&P 500 ETF (VOO)
- Ally Financial Inc (ALLY)
If you are familiar with Warren Buffett, he invests in 75% of this list above.
Starting out with a company that has been a quick favorite of mine is Nike. If you are not aware of what they do as a company, they engage in marketing, designing, and distributing of athletic footwear, apparel, equipment, and accessories and services for sports and fitness activities.
On September 29, 2022, I put my first $30 into Nike (NKE) shares, the price of the stock was $97.20/share at the time. Four days later, I put $10 into Nike at the price of $84.73/share. My last installment was on January 31, 2023, of just $5 at a price of $127.63/share. This brings my total investment into Nike at $45. The stock market records the 52-week high and lows of every company on the exchange.
52-week high - 147.54 52 week low - 81.97
As you may notice, this is a perfect example of catching a sale! Even though I did not buy an entire share, I got into Nike less than three dollars away from its 52-week low, which is a great sale! The beautiful part about catching a sale in the stock market is that you will see a return on your money sooner than later. This is cool because my three installments or small investments of a total of $45, starting just about 4 months ago has grown by 30.76%. My total investment into Nike is now valued at $58.58. This is a much higher percentage than a bank would offer, so in other words, now is the best time to start investing!
When you look into dividends, which is basically the company paying you to invest in them, because you also own the company therefore you are making a return on your money. Dividends get paid out quarterly and some monthly! The last dividend Nike paid out was $0.34, so if you owned 10 shares, you would be paid $3.40 and $34 for 100 shares. If you continue to dollar cost average which is putting whatever works for your budget into the market consistently, your money will work for you investing into the best companies.
The next 3 companies are the 75% that I share investing with Warren Buffett. This company is a beverage company, which owns companies such as Minute-Maid and Simply juices. Doing this research, I found a very cool fact. Coca-Cola's (KO) initial public offering (IPO) was on January 26, 1950, which is their first day on the market and my birthday. On January 12, 2023, I purchased $10 worth of shares into Coca-Cola at the price of $61.70. On the day of recording these notes, you will notice that unlike Nike, I am not "winning" right away.
52-week high - 67.20 52-week low - 53.63
I am sitting at $9.74 which brings me down $0.26 on my investment, which is still not bad at all. The last time Coca-Cola did earnings (paid their investors) the price was $0.44. Warren Buffett is a big fan of the Coca-Cola stock.
One of Buffett's newest additions to his portfolio is Ally Financial (ALLY). It is also a company in one of the budding sectors of Financial Tecnology or more commonly known as FinTech. In a two month span last year, I acquired 5 shares of Ally Financial. My first purchase was May 24, 2022, for the price of $40.22. Almost two weeks later, on June 13, I purchased two shares for a total of $73.20, which is $36.60 a piece. Three days later, my spot to jump was looking better and better, with an entry price of $32.30. My final share was purchased on June 22, 2022, at $32.73, this brings my five shares to a total price of $178.45. At the time of these notes, I was down 6.11% or -$10.90, while that percentage may seem like a lot, we still have the future to think about!
52-week high - $51.05 52-week low - $22.13
Warren Buffet owns nearly 30 million shares of Ally Financial. ALLY paid out $0.30/share in dividends which netted me $1.50/share. Now, if we consider Warren and round up to thirty million in shares, he would have profited $9 million. This is why we continue to invest!
The last pick for this post is not a blog but it is an ETF. One that I still do not personally own an entire share of. I have just been investing into it over time. There were seven different days in which I invested in this company last year. Vanguard S&P 500 ETF (VOO) is loved by a lot of investors, and you can bet the biggest ones are investing in them because VOO invests in the big companies. Starting on March 24, 2022, my first investment was $6 at $409.07/share. On April 13, I dropped $10 more in at $404.10. My next two investments were $25 on April 22 ($397.85) and May 03 ($381.45). Nine days later on May 12, 2022, it was an $8 investment made at $361.65 a share. In the final days of September, I added $20 into a price of $336.42/share. My last installment was $15 on October 03, 2022, at $336.63/share.
These 7 investments bring my total to $109. At the time of this recording, I was profiting at $110.64, which is $1.64. If I continue to buy in at good prices, there could be plenty more room to rise. I made $0.49 in dividends in my share of VOO.
52-week high - $424.72 52-week low - $318.35
During March of 2020, you will notice sure fire "sales" in the stock market, generational chances to get companies at really great prices which also helps you notice and learn how cyclical the market it is and the fashion it operates and when the best times and prices is to strike for your investments. I included the price of the 4 stocks in today's post during that time just for the sake of understanding and seeing compounded growth in the stock market and investing.
- Nike (NKE) on 03/18/2020 - $58.52/share
- Coca-Cola (KO) on 03/23/2020 - $33.31/share
- Ally Financial (ALLY) on 03/18/2020 - $9.35/share
- Vanguard S&P 500 ETF (VOO) - $192.55/share
Here are the prices at the close of the market today 02/13/2023:
- NKE $125.45
- KO $61.00
- ALLY $32.60
- VOO $379.18
I hope this information is helpful and guiding you into sound investment decisions!
Peace. Love. Blessings to you all,
B.Will