• ODT Gun Show & Swap Meet - May 4, 2024! - Click here for info

3 strategies redux

chucklenut

Default rank 5000+ posts
The Hen that laid the Golden Legos
362   0
Joined
May 10, 2011
Messages
45,886
Reaction score
32,395
Location
atlanta
below is my original posting with a few redactions.at the end of each month ill post my findings.

ok, so i made mention of this is in some other threads. starting today (or a few weeks back rather) i decided i would take 3K and invest 1 thousand fiat dollars into 3 seperate investment techniques

LET ME START BY SAYING THAT NONE OF THIS CONSTITUTES AS ADVICE FROM ME AND IF YOU FOLLOW WHAT I DO WITHOUT GETTING A 2ND OR 3RD OPINION YOU DESERVE TO LOSE YOUR ASS!

1) standard t-bill through treasurydirect.gov with repeated reinvestments for the span of 2019
2) i put 1000 into duke energy's DRIP. just autodrafted today and the stock purchase price is around 83 bucks (eww but im in it for the dividen son)
3) i bought a ****ton of knives (1000 dollars worth) that i felt would be easy to sell. my goal is to not profit in excess from the sale of knives but rather to rival the earned slow run interest from the other 2 accounts. bear in mind that the first two require no involvement what so ever after its set up. this 3rd strategy requires i actively sell, ship, or meet

i will update this thread by editing the 2nd post (mine) at the beginning of each month. below is a bit about each investment technique

1) the tbill are short run securities that sell less than the par value; meaning your profit comes from the discount rate the security was sold at. in this case, i chose a 4 week t bill to be reinvested 13 times (4 x 13 = 52 weeks in a year). the issue date for this tbill will be 1/2/2019, although they have already drafted my account. this is all done via a non-compete bid; basically i let treasurydirect.gov know how much and when i want to invest, when the secruity is issued i then find out what my % interest is. in this case i wanted 1000 to be invested, or close to it. in this particular instance my real dollar value for the security purchased was $998.20 - 1000 = net gain of $1.80 four weeks from tomorrow lol. of course this is to be reinvested 13 times, so overall my gain would be $23.40 if the reinvestment bid maintains the same rate.

quite possibly, the tbill remains the lowest earning security aside from the EE savings bonds (which have a laughable paltry amount of 0.1% interest). but if you got cash sitting around and want a relatively secure investment, may be not the worst thing (im betting the i savings bonds, tnotes and tbonds earn better but their longevity is longer than a year which is why i opted for the tbill for this experiment)

2) the dividend reinvestment program (DRIP) is an excellent way to park unused monies and as a way to earn over time. with the DRIP you are buying shares in a private company or holding shares and any dividend payments made to you for your shares will be reinvested in the form of more shares. most if not all publicly traded corporations have one of these. i am very, very risk adverse so stocks to me is kinda new. that being said i did some research and opted for a company that i could directly deal with and would be a slow but stable earner. originally i wanted to use a company such as proctor and gamble or johnson and johnson, who have a very diversified product line and hands in many pots. but ultimately i would need to either use a brokerage firm or go through a 3rd party who manages this. Duke energy has its own interface (probably managed by a 3rd party too lol) but it is also an energy company. energy companies wont earn gross profits, but generally speaking are safe. this is because of many, many barriers for entrance for new firms which means competition isnt as much a concern. also, based on their past performance, the stock has had some dips and rises but mostly is operating on an upward linear path. this is relatively new territory for me so for me to predict what interest would be earned would be jumping the gun IMO. we will see how it does

3) i purchased a bunch of knock off OTF knives. they come in black, red, and green. i chose these knives for 3 reasons= cost, cool factor, and durability. i bought a few a while back just to have and after showing it off and playing with it for a long time i found it to be quite durable (as far as deployment meachanism goes). additionally, alot of other folks (many who arent even into knives) really like the spring operated blade. i mean its fun. the quality of the blade is ok, to be fair i wouldnt recommend using one of these other than as a fun toy or as a letter opener or light duty. i am selling these for a price of 20 each, or all 3 for 45. to be honest as long as i get 15 dollar for each knife i am breaking just a bit above even and im cool. i will then take all the proceeds from the knife sale and place them into my capitalone savings account which earns 1%. i will do this until the end of the year or until i run out of knives whichever comes first. as discussed earlier, the real drawback to this is that i have to actively sell and hussle these htings, whereas the former 2 stratagies is a very sit back and let it do its thing approach

i honestly anticipate all 3 to have roughly the same earnings over time.

here are the 3 obvious problems with each: US gov baked securities interest rates are a joke, the stock market is a"rigged" and how the hell am i going to get rid of all these ****ing knives lol

and again, i will repeat my earlier warning. not that my strategies are bad but they may not be good. please, as an economist and budding financial guru i will say that you should never trust an economist or financial guru for advice. get a 2nd and 3rd opinion and please research this yourself.

also, there was some flak from a few bastards regarding the microtech logo; to clarify i was unaware they would arrive with the logo on them, i purchased these because of the durability and fun factor and cost. luckily the free market prevails, to resolve any copyright or patent issues i simply have been selling these minus the box and have removed the logo from the knive with a dremel tool (**** is easy) so they are now sold as steralized :) capitalism at its finest my friends.
 
ill post screenshots later but so far this is what ive "earned"

1) my 4 week tbill was revinested a few days ago. interest rate is roughly 2.3%, divide that by 12 and for lending the government $1000.00 of your money, you get a return of *drumroll* $1.83

2)my duke energy stock has been about the same, no divident payments made yet but the stock as of today has a slight uptick, bringing my $1000 investment to $1004.52 (doing better than the tbill)

3)i have sold quite a few knives mostly to coworkers and friends. ive been charging the base 15 dollar rate; if i was motivated by profits i should have sold these for 20 each (they go pretty quick). capitalone.com account is now at +382 dollars. still a long way to go till they are all sold and i can see how well i did

so far im not rich!! who knew lol
 
Why don't you just take your $3k and put it in an S&P 500 fund?
i could have but thats kinda what the duke energy stock is representing

purpose of this wasnt for me to make money so much as to show other people the best investment strategies available and what to expect

that beng said, its month 3, my duke energy stock is hovering around 89 bucks which means on my 1000 dollar investment i have cleared 50 bucks in earnings (no dividend payout yet).

i have sold all the knock off OTF knives at this point. i should have sold them for higher but i was using this method as a control....turns out the control moved alot faster than i thought lol

as for the 4 week tbill repeating, to date i think ive earned maybe 3 dollars total in my pocket from the 1K investment lol

so thats the update. the 4 week tbill is going to go for another 10 or 9 investments, the duke energy stock is staying strong and i need to order more knives and forget selling at cost haha
 
update. treasury direct tbill repeating is still earning between 2.2 and 2.7%. would have preferred at this point to put it in my savings account and leave it at that. although the savngs bonds i purchased between january and april earn 2.83% and are nice. new interest rate on savings bond (series I) is only 1.9% so bugger that for the time being

sold out of my OTF knives basically. i decided to go ahead and order another 100 just for the fun of it. people seem to really like them and i enjoy selling them so ill keep at it even though it only makes me a few bucks

duke energy is going well i suppose. has rised to as high as 92 bucks per share and i bought it around 83/84 i think. earned basically 10 bucks so far on it via divdend payments lol so its an ok slow earner
 
i could have but thats kinda what the duke energy stock is representing

purpose of this wasnt for me to make money so much as to show other people the best investment strategies available and what to expect

that beng said, its month 3, my duke energy stock is hovering around 89 bucks which means on my 1000 dollar investment i have cleared 50 bucks in earnings (no dividend payout yet).

i have sold all the knock off OTF knives at this point. i should have sold them for higher but i was using this method as a control....turns out the control moved alot faster than i thought lol

as for the 4 week tbill repeating, to date i think ive earned maybe 3 dollars total in my pocket from the 1K investment lol

so thats the update. the 4 week tbill is going to go for another 10 or 9 investments, the duke energy stock is staying strong and i need to order more knives and forget selling at cost haha

A single stock is no where near representative of the S&P 500. You would be ahead of all if you had put it in a low cost index fund..
 
A single stock is no where near representative of the S&P 500. You would be ahead of all if you had put it in a low cost index fund..
meh, its a slow earner drip account. thats why i picked it. the 3K wasnt so much to make as much money as possible as it was to run a fun experiment and familiarize myself and other users with different investment vehicles/options

more for the lulz
 
so for those interested, lol the rotating tbill is now paying out 1.59%

lol that sucks. ****ing treasury is ****ting out low interest rates for sure

yall hang on, this economic ride is about to get real ****ty lol
 
Back
Top Bottom