And We're Off!

Tuesday was a busy day for the portfolio.  I bought 10 of the stocks I've been researching.  I use Sharebuilder to buy all of my stocks.  Sharebuilder is an easy and affordable way to accumulate your investments over time.  You can invest as much or as little as you like.  I highly recommend their services.


Here is a list and short description of the stocks in the portfolio as of February 15, 2011:

• ACTIVISION BLIZZARD (Nasdaq: ATVI):  Activision is the No. 1 video game maker with blockbuster titles such as Call of Duty, Tony Hawk, Guitar Hero, and World of Warcraft.
• APPLE INC. (Nasdaq: AAPL):  Apple designs and manufactures computers, mobile phones, and music devices such as the iMac, Macbook, iPad, iPhone, and iPad. Apple also owns and operates iTunes.
• CHIPOTLE MEXICAN GRILL (NYSE: CMG):  Chipotle is a fast-casual food operator specializing in fresh Mexican food.
• DOLBY LABORATORIES (NYSE: DLB):  Dolby designs and produces innovative audio entertainment systems for homes and businesses.  Think Dolby Surround Sound.
• HASBRO INC. (NYSE: HAS):  Hasbro is one of the world's largest toy and game manufacturers with brands including Nerf, Transformers, Playskool, My Little Pony, G.I. Joe and Monopoly.  Hasbro is now leveraging its brands on TV, online, and on the big screen.
• JOHNSON & JOHNSON (NYSE: JNJ):  Johnson & Johnson is a leading manufacturer of healthcare products and pharmaceuticals.  Its brands include Johnson's, Aveeno, Clean & Clear, Purell, K-Y, Listerine, Zyrtec, Neutrogena, Visine, Band-Aid, and Tylenol to name a few.
• PEPSICO, INC. (NYSE: PEP):  PepsiCo is a global snack and beverage company with brands including Pepsi, Gatorade, Tropicana and Frito-Lay brands (Lay's, Doritos, Fritos, Cheetos).
• PROCTER & GAMBLE CO. (NYSE: PG):  Procter & Gamble is a leader in consumer goods offering household care, beauty, grooming and health and well-being products with brands including Pantene, Gillette, Always, Crest, Downy, Charmin, Bounty, and Pampers.
• THE WALT DISNEY CO. (NYSE: DIS):  Disney is a worldwide entertainment powerhouse that operates ABC, ESPN, Disney World, Disneyland, and Disney Cruise Lines among other things.  Disney also owns Pixar Studios.
• WAL-MART STORES (NYSE: WMT):  Wal-Mart is the world's largest retailer and operates discount stores, supercenters, and Sam's Club warehouses worldwide.

Stay tuned for the last ten stocks plus a link to track portfolio performance!

My Investment Philosophy

"Stocks are simple.  All you do is buy shares in a great business for less than the business is intrinsically worth, with management of the highest integrity and ability.  Then you own those shares forever." - Warren Buffett

Warren Buffett is undoubtedly one of the greatest investors of all time.  His investment prowess has made him one of the richest men in the world, consistently ranking as the #1 or #2 wealthiest person in the world.  Buffett's success stems, in part, from his discipline and his commitment to investing in exceptional companies and holding them for a very long time.  Following Buffett's lead, I intend to buy shares in some of the greatest companies of our time, and use this blog to discuss, analyze, and track these investments.  

Like Buffett, I look for companies that 1) are efficiently run by competent and honest managers, 2) have strong, enduring brands, 3) are highly profitable and carry relatively little debt, 4) are easy to understand, and 5) are available at a very attractive price.  Finding companies with all of these characteristics is not easy.  When I find one, I hold on for dear life!  I do not "trade" stocks in hopes of becoming a multi-millionaire overnight.  I intend to hold my ownership interests in these companies for the rest of my life.  I know that over time, my ownership interests in these companies will grow as 1) the companies grow and profit, 2) I reinvest dividends to buy more shares, and 3) I continue to buy more shares when the market offers them at a discount.

Additionally, I will only buy shares of companies that I can easily understand.  If an advanced degree is needed just to figure out how a company makes money, I'm in way over my head.  A company can have all the potential in the world, but if I don't understand it, I have absolutely no business owning a piece of that company.  There are so many highly profitable, easy to understand companies in the stock universe to choose from, why make the work harder for myself?  Keep it simple, Stupid!

The portfolio I create for this blog (and my own personal account) will be limited to my top 20 investment ideas.  These are the companies I believe offer the best growth and income potential over the next 10, 20, and yes 30 years!  Limiting the number of investments forces the discipline and focus necessary to properly track these investments.  If I find another company that interests me, it must be compelling enough to knock one of my formal investments off the list.  This won't be an easy task, as I LOVE the companies I'm selecting for this portfolio.

I hope this will be a fun and rewarding experience, and I hope that I can spark someone's interest (and/or calm someone's fear) about investing in the stock market.  It truly is one of the best ways to build wealth over your lifetime.