Here's how our portfolio fared since I bought in on Tuesday:
Company (Ticker) || Purchase Price || Friday Close || % Change
US Steel (X) || 25.64 || 28.76 || 12.17%
Alcoa (AA) || 9.31 || 8.15 || -12.46
PPG (PPG) || 39.59 || 43.50 || 9.88%
Overall Fund || 15000 || 15383.60 || 2.56%
Dow Jones Industrial (DJI) || 8149.09 || 8635.42 || 5.97%
So we lost to the market, that's ok. It's still a heavily cash portfolio and that is for good reason. If the market were to take a nose dive next week, we would be fine because of the cash reserves. The idea was to buy in, but still leave some room to maneuver.
Individually, PPG and US Steel were very good to our portfolio, making 9.88 and 12.17 percent respectively. There was no major news for either company, both just enjoyed an up market and an undervaluation.
Alcoa on the other hand suffered from the news that it was in a fight to remain viable. I believe that it's trading so low right now, that there is not much risk. Even in a bankruptcy or a takeover stock prices are unlikely to plummet from where they are right now. I'm sticking with the stock, though I don't intend to increase the position unless the stock prices fall off pretty significantly.
Finally, I'm not even going to comment on what is going on today as far as a general market trend (though I am knocking on wood as the dow is up 200+). In Pittsburgh, it looks like people may have realized that Alcoa can only go so low without acquisition talks starting it also doesn't hurt that new government spending may require US based companies be used.
To view all the posts on Investing Pittsburgh, including the early posts about how the fund was formed and the purpose, click here.
9 months ago