With the market beaten down pretty bad, we figure now is a perfect time for us to buy some individual stock with a little "play money".
We took $1,000 out of savings and opened an E*TRADE stock trading account. My wife and I have had our eyes on a few stocks, but ended up choosing Toyota Motor Corporation (ticker TM) because we feel it is a strong company and will likely recover nicely when the economy turns around. We purchased 15 shares of Toyota on Thursday for $63.71/share. In the last month, it dropped from right around $90/share to its current price of $67.10/share. 12 months ago, it was at around $114/share.
We'll see where it goes from here. With the volitliy of the market, I’m sure it will shoot above and below our purchase price. We hope to take some profits if it works its way back up to $90/share.
5 comments:
that sounds like a good bargain! It's going to be interesting seeing what of bloggers do regarding shares, I'm a week or two off buying in I think,
Good move. I'm a little surprised you chose a car company at this point but Toyota is a good pick in that industry. Did you use a stock screener? Or was this more of a seat of the pants pick?
Louise - I hope it ends up being a bargin. It will be fun to have another financial number to watch.
Mr. Toughmoneylove - I guess you can say we picked it by the seat of our pants. We think Toyota is a great company and their stock looked pretty beaten down.
-1ManMoney
I wish I had money to buy some stock right now. Warren Buffett has been preaching lately to buy buy buy! It is odd that people who usually lose money in investing forget the basic principle of buy low and sell high, not buy low and sell when you think its going to go higher. Must be realistic, I think Toyota is a good purchase for the price as you said. Great bargain indeed.
Doctor S,
That's the trick, having cash when everything goes on sale. We pulled it from our emergency fund/savings, but should be able to save up back up in 2 months or so.
-1MansMoney
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