Third pin stuck in the newspaper

The purpose of this blog is to show how easy it is to start your own stock portfolio based on a proper investment plan. 

An investment plan was picked from the little book “Beat the stock market casino”. 

The investment plan was called; "No Capital Gain Taxes growth investment plan". 

Once every six months a new holding is added to the monkey paper portfolio and a new holding is added to the crayon paper portfolio. Approximately the same dollar amount is invested in both portfolios to keep them more easily comparable. The $ amount invested each round is dependent on positive or negative performance on portfolio level for the monkey portfolio.

As announced in the previous blog it was time to put another pin in the newspaper in order to select another holding for the monkey portfolio. A blue colour pen was used instead of a pin and here is where the pen landed on The Telegraph newspaper…

The blue colour pen landed on the stock Deutsche Telecom.

According to the rules of the investment plan a holding with the main listing outside of US and UK was needed in order to diversify globally and Deutsche Telecom ticked that box. Hopefully this third holding will perform better than the disastrous performing second holding Lloyds Banking Group Plc.

At least the wisdom of not investing with a lump sum method has become clear. If the monkey portfolio had invested $125,000 in one shot this time last year, the damage by now could have been permanent for a long time. Since only $12,500 is so far theoretically invested in the monkey paper portfolio, the monkey portfolio still has plenty of fire power left... In the current market that looks like a good thing....

The monkey portfolio is still under water/down (by a mile). That means a new position value of about $7500 or 6% of the intended start portfolio according to the “no capital gain taxes growth investment plan” in the book “Beat the stock market casino”. 

Have you bought the book yet on Amazon? 

The portfolios are diversified over time as well as over multiple holdings.

So the crayon portfolio follows where the monkey portfolio leads, to keep things comparable. The crayon portfolio needed a third holding with the main listing in the Euro zone therefore as well.  This third holding for the crayon portfolio had a target of about $7500 position value just like the monkey portfolio. The Stockrover website knew both stocks (Deutsche Telekom and ASML) so that meant tracking the performance would not be an issue.

ASML's ADR (ASML code) had a close on Friday the 22^nd of May 2020 of $ 319.36 according to the stockrover website. Deutsche Telekom ADR (DTEGY code) had a close on Friday the 22^nd of May 2020 of $ 14.89 according to the stockrover website. Take $7,500 and divide it by the share price and round down to get the full number of shares that could be bought per position.  So the paper crayon portfolio added 23 shares of ASML at $319.36 on the close yesterday for a value of $7346. The paper monkey portfolio added 503 shares of DTEGY at $14.89 at the close yesterday for a value of $7490.

May the force be with ASML and Deutsche Telekom! Stay classy dear reader. Thanks for reading this blog. 

This blog is not a tip sheer or advice or a recommendation to buy, sell or hold any investment. 

The purpose of this blog is to sell the book “Beat the stock market casino” and expand on the book. This blog is for information and marketing purposes only. 

The blog does not in any way constitute investment advice. 

Investors should form their own view and do their own research and ideally talk about their view with an independent licensed financial adviser before doing anything. Holland Park Capital London has a long position in ASML. Holland Park Capital London wrote this article and is receiving no compensation for it and has no business relationship with any company mentioned in this blog. The value of your stock investments including income may go down as well as up. You may not get back all the money that you invest. 

The stocks referred to in this blog may not be suitable for all investors.