I’m thrilled to announce the launch of The Samurai Fund! This is a mutual fund unlike any other, designed entirely by random selection from reader submissions, ranging from personal names to blog titles. Our aim? To beat the S&P 500 index with our long-only strategy.
Here are the details: We’re launching with a hefty $1.672 trillion, priced at $100 per share. The fund comprises 17 diverse stocks, balanced equally across various sectors like alcohol, utilities, technology, and health sciences, covering both small and large caps.
Looking ahead to 2010, the stock market is on a slow climb. With inflation and interest rates low, consumer spending is picking up again. The housing market is stabilizing with mortgage rates under 6.5%. Thanks to continued government spending, we’re anticipating a drop in unemployment rates in the latter half of the year and projecting the S&P 500 to rise by 10-15%.
Fast forward to 2019, and we’ve hit record highs!
The fund operates on a one-year cycle, during which the bottom three performers are evaluated every quarter. Stocks down by more than 20% are also reassessed. Contributors must defend their picks to remain in the fund.
Our goals with this fund are to have fun, learn about the stock market, test the influence of luck on performance, and strengthen our community ties. Please share and discuss this on social media and join us in this financial adventure. Feel free to dive into portfolio analysis in the comments below!
Here’s a quick overview of some stocks in our lineup:
Financial Samurai: Boston Beer Co. loves their Samuel Adams beer. Despite its popularity, its high valuation and lack of dividends present challenges.
David at MBA Briefs: ABM Industries seems steady with consistent earnings, though it’s not expected to make waves immediately.
Charlie: Harman International is a wild card with its focus on audio products and electronic systems. A learning opportunity for sure!
Credit Card Chaser: Calgon Carbon, involved in water and air purification, shows promise with solid earnings growth projected.
Don at Money Reasons: Monsanto could rebound. It’s essential, given its agricultural products are crucial for food supply.
Free From Broke: Betting against Warren Buffett’s Berkshire Hathaway? Seems risky as the company continues to perform solidly.
Stef at 151 Days Off: Steris Corp, with its focus on infection prevention, might be more relevant than ever given recent global health concerns.
Daniel at Sweating The Big Stuff: Big Lots could thrive as the economy begins to recover, benefiting from its position in the discount retail space.
Thrifty Gal at Chasing Prosperity: PG&E provides essential utilities, making it a stable pick despite its controversial history.
Lean Life Coach: Toyota Motors faces challenges but its commitment to improvement and new technologies like hybrid vehicles holds potential.
Patrick at Cash Money Life: Compellent Technologies, a player in the storage network solutions, could be a dark horse with its aggressive growth projections.
Len Penzo: Lenar Corp seems risky with the uncertain housing market, but it’s part of the diverse portfolio strategy.
Evolution of Wealth: Edwards Lifesciences is expected to benefit from ongoing health issues related to cardiovascular diseases.
LL at Investor Junkie: Lumber Liquidators might see significant growth with a strong focus on specialty hardwood flooring.
Evan at My Journey to Millions: Jones Apparel Group, with its portfolio of well-known brands, looks poised for steady growth.
Paul at Fiscal Geek: General Electric is streamlining, possibly enhancing its stock value post-NBC Universal sale.
Monevator: Monster Worldwide could gain from economic recovery, aligning with job market growth.
Let’s keep pushing the boundaries of what a community-driven fund can achieve. Here’s to a bull market and setting new records!
