Luke's Personal Finance Blog

Here's my portfolio for Q1 2007:

COP - Conoco Philips
WMT - WalMart
LOW - Lowes
BAC - Bank of America
TM - Toyota Motors
HAL - Haliburton

I purchased most of my shares at a P/E close to 1x next year's earnings (although i got a heck of a bargain on COP).

I purchased BAC at the interest rate peak knowing that in 07-08 as rates start to ease, their profits will jump.

I purchased COP because it was tremendously undervalued and i see energy going no where but up.

WalMart and Lowes were cyclical plays on the retail industry. With housing hitting bottom and interest rates close to peaking, housing can only go up and interestes rates down...so I see consumers having more $$ to spend at these two locations during Q3 and Q4 of 07 and into 08.

I purchased Toyota as i see them overtaking GM as the world's #1 automaker. I also see a push for more fuel efficient vehicles and Toyota is going to be there to capitalize.

I purchased HAL as a diversified energy play.

On my radar to completely diversify my portfolio is:

Goldman Sachs - GS

Boeing - BA

Level 3 Technologies - LVLT - This is a company that is in the bandwidth business. with acquisitions of Google and YouTube and the need for faster internet and more bandwidth, this is my speculative play for 2007. I will invest no more than 1000 in this company for the year.

Pepsi Co. - PEP

I'm also looking at General Mills, General Electric, Microsoft and Apple, but need to do further research on these companies.

Here is my basic updated plan...My wife and I both work. We still live on 60% of my income alone.

Here is what I do each month in order:

1. Contribute to 401K ($15000/yr each)
2. Pay all bills (approx. $2900/mo)
3. Invest in Ameriprise Mutual Fund Portfolio ($1000/mo)
4. Contribute to cash fund ($3500/mo) until cash balance hits $50K then re-allocate more to stock market.

Income:

Me: $58,200/yr - fulltime job
$35,000/yr - side business

Wife: $104,000/yr

Here is my basic plan...My wife and I both work. we live on 60% of my income alone.

Here is what I do each month in order:

1. Contribute to 401K ($15000/yr each)
2. Pay all bills (approx. $2500/mo)
3. Invest in Ameriprise Mutual Fund Portfolio ($1800/mo)
4. Contribute to emergency cash fund ($1000/mo)
5. Contribute to vehicle replacement fund ($500/mo)
6. Contribute to "fun money" fund ($1400/mo)
7. Invest the rest in riskier investments. ($1300/mo)

Opened investment account 3/31/2006 with $55,000. Made deposit on 5/1 of $1800.

Current value of mutual fund portfolio: $59,400

Income:

Me: $58,200/yr - fulltime job
$35,000/yr - side business

Wife: $90,000/yr