Poor’s Man Portfolio : An Experiment
There is a portfolio that I have designed, with the poor man in mind. The poor man is yours truly, of course, as I have lost so much money on the stock market that I am heading for the poorhouse. I don’t even have any money to buy stocks right now, so I have bought this portfolio in January 2009 options. I will track the performance for a month or two and then decide what to do with the options: most probably take my money and run, whatever is left.
This is my poor’s man portfolio experiment:
Why these companies? Simple, they are things poor people buy. These are things I buy because I do not have money. I drink Mountain Dew and buy a bunch of fat foods for lunch because I can’t go to a nice restaurant (Pepsi). I go to Walmart to buy my household stuff because I can’t go to Macy’s. I go to Taco Bell and KFC (YUM Brands) because I can’t even afford McDonalds. And I use ATT Wireless because even when their service is crappy, it is about the only one I can pay for my business. If I was a couch potato I would also get their best cable service, since I would not be able to afford any other form of entertainment.
Lets see how I end up in a month or so. Maybe I will be able to celebrate by going to McDonalds and by watching a movie at the local cinema (on Tuesday’s of course, it is on discount). Or maybe I will finally end up in the poor house.