You Can Invest Like A Stock Market Pro by James Pattersenn Jr

Author:James Pattersenn, Jr [James Pattersenn, Jr]
Language: eng
Format: epub
Published: 2019-08-28T07:22:27+00:00

“If you buy stocks at a big discount to value, it doesn’t matter what the market does.” —Donald Yacktman

MY TRADITIONAL IRA (MAY 2012 TO AUG. 2013)

After the creation of my Personal Worry-Free Stock Portfolio some time ago, I discovered many excellent stocks that qualified as worry-free stocks for generating great wealth. In May 2012, I lost my job of 22 years. Because of the job loss, I had the opportunity to rollover my 401(k) balance into a Traditional IRA. The truth is, I was glad to have the chance to put my money to work in better investments than those offered by the company. As a matter of fact, my 401(k) would have performed much better if it were not for the actions of our managers who decided on two occasions to change investment management firms to save money. The changes resulted in heavy losses for me and the other employees that had 401(k) plans with our company.

I would have preferred to put the funds into a Roth IRA, but to do so would have required me to pay taxes on the money that would be removed from my 401(k). The payment of all taxes due is required by federal law because the Roth IRA is an after-tax account whereas taxes are commonly deferred on most 401(k) contributions, and such was my case. It’s my desire to hold off on paying taxes on my retirement funds for as long as I can while my money compounds tax-free. The portfolio was started on May 22, 2012, and originally contained 16 stocks. Since that time, the number of stocks held in the portfolio has varied with about 20 stocks being the upper limit. Although the account is an IRA, it’s still a worry-free stock portfolio that I created according to the principles and strategies contained in this book. When looking at the gains or losses, the numbers may not seem to make sense when comparing the average cost per share to the latest price because the gain or loss figures provided also include dividends that were received and reinvested.

The portfolio’s performance is based on the stock market’s close as of Aug. 8, 2013. The cost basis of the original investments in this newer portfolio is $58,841.99 and the current balance in the portfolio is $81,378.99. This gives the portfolio a total return or gain of $22,537.00, or 38.3%, in about one year and three months, and an annual return rate of 30.7% for this portfolio with dividends reinvested. The S&P 500 had a total return of 32.0% and an annual rate of return of 25.7% with dividends reinvested over the same period of time.

The best performer in the portfolio during the period was Green Mountain Coffee Roasters. Its total return was an amazing 243.3%. Of course, that’s nothing compared to what the stock has returned to those that have owned it for several years. According to research, many long-term owners of the stock have made returns of several thousand percent.

Cliffs Natural Resources and National Steel Co.

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