We opened The Young And Restless Retirement Portfolio in late November, 2012. The goals of this aggressive growth portfolio can be reviewed right here. This type of portfolio is not designed for everyone, and carries much greater risks than our Team Alpha Retirement Portfolio (click here for the latest news), as well as a more rapid turnover rate
That being said, we have seen some serious growth in this portfolio in less than 6 months time.
Update Through May 30th, 2013
Stock Orig.Price Price Now Orig. Invst Value Now %+/- AMZN 230 267 10,000 11,500 15% BBRY 13 15 10,000 11,000 11% GOOG 640 871 10,000 13,800 38% FB 23 25 10,000 11,000 10% ACHN 8 8 10,000 10,000 0% YHOO 19 26 10,000 13,000 30% ACHN (2nd) 8 8 10,000 10,000 0% ZNGA 3 4 10,000 11,000 11% Portfolio Value xxxx xxxx 80,000 91,800 xxxx Cash xxxx xxxx xxxx 21,600 xxxx Total xxxx xxxx xxxx 112,900 41.13%
The portfolio has performed stunningly. Up 41.13% since we began 6 months ago, with the help of the rapid rise of both Netflix (sold, and booked profits), and Google (this one could keep flying folks) the portfolio is doing precisely what it was designed to do; create strong growth in a short period of time.
Not everyone fits the profile for this portfolio, but for those that do, I would hope you stick to the plan for now.
A Quick Review Of The Investor Profile
If you recall, this portfolio is for the younger, aggressive investor with a long time horizon. As I noted previously in my last update:
Our young investor is between the ages of 21 and 25 and fresh out of whatever educational institution they attended. It could have been college, trade schools, or even their first job to cut their teeth on.
Now they are ensconced in a well paying job, career, or entrepreneurial enterprise with a very bright future ahead of them. Probably lasting for the next 35-45 years.
Their income level is strong and they have just begun socking away the maximum amount of money allowed into all the tax deferred savings plans available, and are well on their way towards saving another 10-20% outside of those plans.
These investors are off to a great start.
Recently, they inherited a bunch of money from a long lost Uncle and have money to invest with. Normally, I would say let's start the dividend investment strategy now so you can create wealth for the long haul.
Today I will focus on the possibility of creating enormous wealth. If there was one time in investors' life that I think they should give this a shot, it would be under the circumstances I have outlined above.
As I have stated repeatedly, this portfolio will be a quick moving, rotational portfolio designed to create wealth in stocks that I see having the potential to create great wealth.
Actions Being Taken Now
With over $20k in cash, I am making another purchase of Facebook on its recent price weakness. While many are still skeptical of the future for this social media giant, I believe that the company has enough moving parts to continue surging ahead as the leader in the sector.
I will be buying another block of shares ($10k) as of today.
Yahoo has become very aggressive and I believe has re-created itself back in to a fast moving growth company. With the most recent acquisition of Tumblr, Marissa Mayer, the CEO of Yahoo has made it clear that Yahoo intends on becoming a large player in the social media business.
This article offers some insight as to why David Karp sold to Yahoo, rather than doing a partnership:
"We knew we would working together," he said, but "when Marissa showed up in New York, she walked me down a story of how we can do even more together." Mayer wanted Tumblr because she was "looking for a future for Yahoo, a path forward and growth." She convinced Karp that an acquisition would save Karp from a painful learning curve. "This was an unbelievable opportunity to shortcut all the very hard things that we are about to be going through," he said.
That pretty much sums up what Yahoo is thinking for future rapid growth, and with the other moves that Mayer has made, I am excited about the growth potential and will be adding another block of shares today ($10k).
Achillion has made news recently, and as I noted in this article, progress is being made with the company Hepatitis C drug pipeline. Most recently, the company has had several significant events, which were outlined in this press release (the retirement of the CEO), and in this press release, announcing another new drug, in pre-clinical stage, for the hep C pipeline of the company.
While the latter news sounds somewhat exciting, I was taken aback by the recent presentation by ACHN at the UBS Global Healthcare Conference (read the transcript here). I will be writing an in depth report on the presentation, as well as where I believe the company is heading, and why, but for the purposes of this portfolio update only, I will be monitoring ACHN much more closely, as I am not thrilled with some key developments outlined in the UBS presentation.
The bottom line for the stock is that I might be dumping it after I finish my complete research. For now it is on a hold, but monitor very closely basis.
The New Look Of The Portfolio
With the new purchases today, here is what our portfolio will look like:
|Stock||Orig.Price||Price Now||Orig. Invst||Value Now||%+/-|
Keep in mind that we began the portfolio with $80k, and have now redeployed the profits from Netflix, back into the portfolio, so the beginning value remains at $80k, even though $100k is fully invested.
This portfolio will be closely monitored of course, and we will take profits when we feel the time is right, and add stocks to the portfolio as we find them. Adding to existing holdings simply shows our optimism for those particular stocks right now.
Disclosure: I am long ACHN, BBRY, FB, YHOO, ZNGA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: The opinions of the author of this article is not a recommendation to either buy or sell any security. Please do your own research prior to making any investment decisions.