Fantasy Portfolio – April 17

This week, I decided to pick up some shares of a gold stock. Cramer suggests that AEM is the best of the gold stocks, so I decided to jump in when it reached less than $48 a share with another entry point where Cramer suggested it at $44 a share. Gold should be a part of everybody’s portfolio, because it helps fight inflation. As the buying power of the dollar goes down, the cost of commodities such as gold, copper, and oil will increase.

I am also looking at switching out of KO for PEP, and PFE for JNJ. The reason being is PEP and JNJ have a better outlook than their similar companies of KO and PFE respectively. It is better to go with the “best in breed” stock in a sector than to sit on a stock that might underperform.

I am also looking to build core positions to build around, and scale out when I hit a 10-20% gain by leaving in the gains and taking out the original amount invested. This will allow me to minimize my losses and still keep shares of stock that will generate dividend income for me. If more investors thought this way, they would be able to avoid huge losses like the losses that have occurred in the last year.

Dow Jones at Year Start- $9,034.69
Dow Jones at End of Week – $8,131.33
Dow Jones Point Gain – (-$903.36)
Dow Jones Percent Gain – (-10.00%)

Portfolio at Year Start – $104,435.54
Portfolio at Week End – $106,240.09
Portfolio Total Gain – $1,804.55
Portfolio Percent Gain – 1.73%

Symbol – Shares – Last Price – Purchase Price

MCD —– 50 —– $56.09—– $54.47
KO ——- 100 —— $45.02—– $40.96
BP ——– 155 —— $40.13 —– $39.99
PFE —– 275 ——- $14.16 —– $14.26
KMP —- 100 —— $47.16 —– $46.92
MO —— 525 —— $16.99—– $15.75
T ——– 300 —— $25.95 —— $25.82
NAT —- 300 —— $30.19 —— $29.16
CAT —- 100 ——- $32.29 —– $26.36
AEM — 200 ——- $43.65 —— $45.53

Transactions for the Week

4/16 – Buy 100 shares of AEM at $47.11
4/17 – Buy 100 shares of AEM at $43.94

Dividends Paid

$42 from 100 shares of CAT at $0.42 per share

Related posts:

1. Fantasy Portfolio – May 15
2. Fantasy Portfolio – May 8
3. Fantasy Portfolio – April 24
4. Fantasy Portfolio – April 10
5. Fantasy Portfolio – April 3