Rigo,
This is the stock picking stuff I promised I would write for you on the internet. A book was written by a guy named Joel Greenblatt for non-professional traders on how to invest in the stock market in a secure, but effective way. In a nutshell he says to buy “good” stocks “cheap” and hang onto them for a year. In his book he describes what he means by good (return on capital) and cheap (earnings yield). I wrote a program that goes out onto the internet and ranks as many stocks as I can find according to their goodness and their cheapness. I throw out the fad stocks (clothes, restaurants, etc.) and the financial stocks (banks, insurance companies, etc.), then pick two of the best to buy each month. I am really not recommending that anyone use these stock picks–they just happen to be the stocks I, myself, am purchasing. The following are links to stuff I already wrote from oldest to newest:
November 30, 2006: Robot, computer and investment stuff – Re-writing the program and how I did in 2006
December 6, 2006: Blogging on life, homeschool, programming, writing, and investing – More about the rewrite and how I did
December 28, 2006: Homeschool education – A little on why I wrote the program
January 16, 2007: First real stock purchase – The first time I put real money into the stock picks
January 29, 2007: Stock pick update – I had a good start with my first pick – it went down later, but it was a pretty amazing start
March 15, 2007: Stock purchase day – After the stock market tanks, I am still ahead of the S&P 500
This is a link to the place I keep the list of stocks as I purchase them along with the S&P 500 comparison stocks:
My stock purchases
This is a link to the book by Joel Greenblatt on which I based my program:
The Little Book that Beats the Market
This is our webpage:
Chapman Kids
This is where I blog every day:
Chapman Kids Blog
Current status:
- Amount purchased: $6000
- Number of stocks: 5
- Commission per trade: $12.99
- Service: Etrade
- Average time in the market per stock: 33 days
- My picks return (including commissions paid): +1.27%
- Equivalent S&P 500: -0.61%
If you have questions, you can post comments here and I will try to respond as best as I can. It is OK if you want to use Spanish.
