It is a good idea to review all investment portfolios occasionally. I believe that even buy-and-hold investors should periodically review their holdings to determine if there is something there that could be replaced with another stock with more potential. Personally, I like to set alerts on my charting software that tells me when a stock breaks through a predetermined support level. There are certain points where a stock is clearly a mistake, and closing at a loss so the money can be put to work somewhere better is the right decision. Cut your losses and ride your winners works just as well in long-term trading as it does in the short-term.
That said, let’s have a look at my kids’ first three months using Stockpile. They’ve been quite successful, and the excitement of seeing their money grow has been palpable. A 12.5% 3-month return is obviously not something that is sustainable long-term, but when you are dealing with the short-term thinking of children it is certainly nice to get off to such a quick start.
Portfolio Review
Right now my kids each hold the exact same portfolios. I imagine that at some point in the future their interests will diverge and they’ll begin trading accounts that vary a bit, but right now we all sit down together, discuss companies, and place trades at the same time.
They’ve got a nice collection of nine different stocks ranging from toys, to computers, to space ships.
SPCE stock has been their biggest winner despite being their last purchase. In two weeks the stock is up 37%. But that hasn’t been the only big winner. Apple stock is up 32% since they picked it up. Mattel is up 18%, and Disney is close to 10%. FSLR is the only one in the red, down 2%. Overall, there are no changes necessary to the portfolio right now.
My wife and I used to invest money for our kids in segregated accounts inside our own brokerages, but that was neither engaging for them, nor conducive to regular deposits and reviews. Stockpile has made investing with them fun for all of us. My kids are homeschooled/unschooled, and as parents we are constantly looking for ways to incorporate learning into everyday life. For years my kids have watched me trade, but now instead of just being bystanders, they are active participants and learning lessons that will surely serve them well their entire lives.