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A couple years ago I was able to transfer my 401k from a company I left to a self-directed IRA account. I was sick of only being able to invest in mutual funds, especially after the crash when all the funds took a nose dive, but I still had to pay the management fees. Seems pretty stupid that you have to pay someone to lose your money. Also, if you do a little investigating you can see the top 10 or so holdings of each mutual fund. Go look at 5 of the most popular and you will see that they all invest in the same thing – Apple, Google, GE, etc. It isn’t rocket science.
While it isn’t hard to pick stocks, it can be tedious to manage my own fund and keep an eye on it for any sudden risks. And truth be told, I sometimes lose money myself, but at least I don’t have to pay myself a fee to lose it. I do make a point of freshening up my portfolio in January and June of every year to make sure I am not sitting on any time bombs or to add stocks I think may have some upside. This time, I am adding these two stocks to my portfolio, PG & CHD. That is Proctor & Gamble and Church & Dwight Co. Most people are probably familiar with PG, but CHD was a new one for me.
Researching these stocks, I believe I may be a little late to the game as they are on a nice uptick already. This chart is of CHD and it has already taken off. I will interpret that as validation of my reasoning.
What is the reason I am choosing to add PG & CHD to my portfolio you ask? 2 reasons – the book 50 Shades of Grey and the movie Magic Mike. Laugh if you will, but look at that chart. Release date of Magic Mike was this week. Coincidence? I think not. I am betting my money on the owners of all things branded Duracell and Trojan.
Come on ladies, make me some money!
Also added to Seeking Alpha http://seekingalpha.com/user/939007/instablog