The Andrew Jackson Portfolio - Nine Stocks for $20

Maybe it is time to turn to our 7th president for financial advice, Andrew Jackson. The late president appears on the $20 bill, which now goes much further in the stock market than it did five years ago.

Matt McCall, President of Penn Financial Group, has decided to build a new stock index based on how far $20 can go in the current market environment. This is how the “ANDREW JACKSON PORTFOLIO” also referred to as the “NEEDY NINE PORTFOLIO” or simply the “9” was created.

For a mere $20 an investor can own a portfolio with one share of each of the following stocks: Citigroup (C) ($1), General Motors (GM) ($1.81), Ford (F) ($1.80), General Electric (GE) ($6.69), Bank of America (BAC) ($3.19), AIG ($0.36), Office Depot (ODP) ($0.73), Eastman Kodak (EK) ($2.52), Advanced Micro Devices (AMD) ($2.15). NINE STOCKS THAT MANY THOUGHT WOULD BE GREAT LONG-TERM BUY AND HOLD COMPANIES THAT NOW ARE STRUGGLING FOR EXISTENCE! Amazingly, one share of each of the “9” would have cost you a grand total of $315.58 five years ago; today only $20. A bargain or a trap?

Even if GM files for bankruptcy or the government nationalizes Citi, there is still hope for a few of the Nine to make it through the recession and thrive once again. The chance of all Nine going bankrupt is very unlikely and the chance of a few being around in five years is very good. Five years from now the Andrew Jackson Portfolio could be double even if the Nine is trimmed down to Seven or Six. So in the end if you want to take your Andrew Jackson and lay it on the line - this is your best bet.

Disclosure: no positions

Comments

[attenuation:]

Beg to disagree. Would rather go for the agricultural sector which in my view would largely remain unaffected by the current market slowdown (avoiding using the "r" word which is also depressing!)My pick for a $ 20 stock is AGCO Corporation, Symbol "AG".

Mar 08 01:38 PM

[User 372018:]

Even if you want to own 9 shares from any discount broker, you would have to pay $20 + 63( 9*7) commission greater than individual stocks.

In absolute terms, it much greater than $20

Mar 08 02:18 PM

[DRH:]

I still like GE, but I think the rest of those stocks are damaged goods and I would not be a buyer...even at these low prices. It may seem like a bargain, but when we look at real earnings it's very questionable. I agree that they won't all go under, but what if some do and the rest just languish at their present levels? It's hard to justify buying based on the fundamentals. It really becomes a spec play.

Mar 08 02:31 PM

[User 370332:]

you forgot fannie.im thinkin of takin your advise but on a more agressive scale by purchasing $50-75 into each of the black holes you mentioned with ford being my big dog, If you do the math and have free trades you might end up on the right side of the tracks. I can see a light at the end of the tunnel and im hoping its not that darn train again.I like G.E. also and missed a limit buy when it was at its low.one stock you might have mentioned was intel(intc}. that is my hot pick monday and im betting the farm on it. Hope next week im not feeling like a nudest at a nudest beach full of mosquitoes.i havent bought those stocks you mentioned since moby dick was a minnow.

Mar 08 03:57 PM

[buddy_j:]

Definitely GE!

Mar 08 07:37 PM

[einstein p ...:]

GE is a good investment. The rest are pure spec plays at this point. You might at well buy two shares and GE and put the rest in Lotto tickets.

Mar 08 09:02 PM

[DRH:]

I agree, definately a pure spec play...

In this market, there are bargains everywhere for somebody looking to make a few speculative investments. IMHO, it doesn't make a lot of sense to focus on companies with known problems, poor forecasts, and a real possibility of bankruptcy. I'm sure there are better opportunities out there with less "baggage".

Mar 08 10:14 PM

[young money:]

a great investment is bbda the energy drink market is growing and this company has a great opportunity to become one of the biggest energy drink companies.

bbda

Mar 09 07:22 AM

[huangjin:]

Andrew Jackson would find a way to kill the Fed, but in the meantime he'd short the banks to oblivion.

Mar 09 08:53 AM

[helsi:]

Immelt will soon be another casualty

Mar 09 12:01 PM

[Mad Hedge F...:]

There is some substance to this. Looks like there is a massive short covering play setting up in the financial sector. There was big hedge fund buying of calls and call spreads in the Financials Select Sector SPDR ETF (XLF) at the end of last week. The healthy components of this basket, like JP Morgan (JPM) (12%), Goldman Sachs (GS) (7%), and Wells Fargo (WFC) (6%), are at record low valuations. The sick one like Citigroup (C) and Bank of America (BAC) are essentially at zero. This makes your downside risk very low. Watch this space.

Mar 09 01:07 PM

[techocracy.net:]

I would rather spend the $20 on two shares of WFC than buy any stock in that article.

Mar 09 01:55 PM

[jeerio:]

this parlor game illustrates the process our country is going through. we tend to romanticize the familiar, those once-sturdy names we feel comfortable with. so comfortable, we'd invest in them and cheer them on like your neighbor's kid at a tee-ball game.

problem is, all that romanticized corporate Americana will be changing in more gut-wrenching ways, so maybe the best idea is to take possession of the stock certs and sell have your grandchildren sell them on the PBS auction program.

Mar 09 10:30 PM

[Akaimushi:]

That "Portfolio" is now worth over $29 at close Friday.

Mar 16 04:43 AM