Stocks | Jul 9, 2007 | 2 Comments

$500 Stock Portfolio

Is not having a lot of money to invest holding you back? I know many people who aren’t investing in anything, because they think millions are needed.

It doesn’t take a fortune to begin an investment portfolio. Today, I will pretend that I have $500 to start my own stock portfolio.

In my faux portfolio, I’m taking up four positions—to be diversified. One of those positions is very speculative, but it will give me that “home run” potential.

I didn’t take into account any broker fees. My portfolio runs just under $500, so the fees will push it a few dollars higher.

The buying price I’ll use will be the last trading price on July 08, 2007.

The goal isn’t to turn $500 into millions tomorrow—that would be nice though. What we want to do is get our money “working,” so it will grow.

Position One – Starbucks (Symbol: SBUX)

Starbucks closed at $26.34, which is near its 52-week low. I posted a news story about Starbucks adding salads to target the lunch crowd, which will increase their revenue.

I’m buying five shares for a total of $131.70.

Position Two – Real Networks (Symbol: RNWK)

Real Networks is also near its 52-week low. It closed at $8.13.

I’m buying 13 shares of Real Networks for a total of $105.69.

Position Three – GPS Industries (Symbol: GPSN)

GPS Industries makes golf GPS software. I’ve included a link to the article I wrote about it. They also have litigation against those who are violating their patents, and a winning decision will push their revenue and potential higher.

This is my speculative “home run” stock. It closed at $0.103 today, and it has the potential to go higher. As with any speculation stock, it can crash too.

I’m buying 775 shares of GPS Industries for a total of $79.83.

Position Four – Australian ETF (Symbol: EWA)

I wrote an article about Exchange Traded Funds, so if you’re not familiar with them, take a look at that article.

EWA’s four big sectors are: financials, basic materials, consumer services and industrials. There’s also a 4.1% holding in oil and gas.

This ETF closed at $29.24 per share. It pays a dividend. Last year’s dividend was $1.10 per share. The yield is 3.70%.

I’m buying six shares for a total cost of $178.14.

$500 Stock Portfolio Recap

My stock portfolio’s total value is $495.36. Broker’s fees vary, so the final actual cost of establishing this portfolio will vary.

Here’s the quick rundown of what I purchased:

  1. Starbucks – 5 shares
  2. Real Networks – 13 shares
  3. GPS Industries – 775 shares
  4. Australia ETF (EWA) – 6 shares

Do you have a better $500 portfolio? What do you think of this one? I’d love to hear your comments.

Author: Jason A. Martin

My name is Jason A. Martin. I'm an investor/trader, financial writer and entrepreneur. This is my blog. I also run a social media integration & cross-media design company. If you'd like to follow me on twitter, here's the link: Jason A. Martin

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2 Comments

Oct 12, 2008

Starbucks – 11.08
Real Networks – 3.72
GPS – 0.02
ETF – 15.54

…and you lost more than 50% in 3 months… not counting comissions. Welcome to the world of screw-ups! :-)

Bear

10/12/2008

March 11th 2010

Starbucks – 24.29 $121.45
Real Networks – 5.35 69.55
GPSN – nowhere to be seen 0.00
EWA – 23.72 142.32 = 333.32

All are up from the 2008 lows, but still well below the $500

Of course if you bought more when they were at lows in 2008, then you might be a little ahead.

Robert

3/11/2010

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