A Chaotic yet Successful Approach to Stock Portfolio Management

As a novice investor with a small portfolio, I have learned that even the most unorthodox methods can lead to success. My approach may not be conventional, but it has yielded impressive results in my current internship at Stock Rover.

My investing journey began as a child when my father managed a small portfolio on my behalf. The collection of stocks was not carefully curated; instead, it consisted of companies with which I had familiarity, such as Caterpillar (CAT), Costco (COST), and Bed Bath & Beyond (BN). This patchwork portfolio had its ups and downs but ultimately resulted in a modest gain.

Fast-forward to the present day, where I have taken on an internship at Stock Rover. In an effort to improve my investing skills, I created a new portfolio for our internal competition using the platform’s tools and resources. My approach was centered around selecting stocks with promising potential, studying news stories, and analyzing fundamental data to identify companies poised for growth.

The Composition of My Portfolio

My Stock Rover portfolio consists of 11 diverse stocks across five sectors and one ETF (Exchange-Traded Fund). This eclectic mix includes:

• Technology: j2 Global (JCOM), a software company offering cloud-based services
• Consumer Goods: Costco (COST) and Bed Bath & Beyond (BN)
• Healthcare: Johnson & Johnson (JNJ) and Pfizer (PFE)
• Financials: JPMorgan Chase (JPM) and Visa (V)
• Energy: ExxonMobil (XOM)

The top-performing stock in my portfolio, JCOM, has experienced an impressive 20% growth since I first added it to the mix. This increase can be attributed to its robust financials, including high margins and low debt levels. Its gross margin, operating margin, and net margin exceed those of the software infrastructure industry and the S&P500.

Another notable performer is Costco (COST), which has seen a steady rise in value due to its strong fundamentals and loyal customer base.

A Risky Bet on Baidu

One of my biggest losses has been Chinese search engine Baidu (BIDU). Despite its high P/E ratio and risk, I added a small amount to my portfolio based on recent deals with Apple and its significant market presence in China. Unfortunately, the stock did not meet expectations, declining by over 12% since its addition.

Lessons Learned

This internal competition at Stock Rover has been an invaluable learning experience for me. While my approach may seem unorthodox, it has yielded respectable gains despite a short time horizon. I have come to appreciate the importance of thorough research and analysis in stock selection, as well as the value of diversification.

As I reflect on this experience, I realize that even the most chaotic approaches can lead to success when armed with the right tools and mindset. My patchwork portfolio may not be perfect, but it has taught me valuable lessons about the stock market and investing.