Tomorrow is father’s day and I’d like to say happy Father’s Day to all the fathers out there. What better to post this weekend than something about my son’s portfolio.
Baby AAI has been busy and so has his portfolio! He may not know he made this latest purchase but he’s already familiar with their products. He uses them every day.
I funded Baby AAI’s account with an initial $7500 in a taxable account and have been contributing $100/week since 02/27/17, so we’re a little past the two year mark.
I recently posted a 2-year update of his portfolio a couple months ago if you want to catch up. The previous update was the 1-year update that can be found here.
The last update doubled the number of positions from 4 to 8. At the one year update, he held CRI, HBI, DIS, RDS.B. At the two year update he added shares of CVS, FOXA, PEP and PYPL.
He recently added a new position in AAPL. AAPL needs no introduction and was only fitting to be put in his portfolio. I mean he’s already using the IPAD like a pro!
10 shares were purchased on 06/03/19 for $173.22/shares. I’m late to post and the share price is already up over 10%. This is just gravy because I don’t really plan on selling any shares in his account but letting them grow for 18 years.
Here’s the current porfolio:
The portfolio is currently valued at $22.380.88.
I’m hoping to achieve a 7% CAGR which will put the balance right at $200,000 by the time he’s 18. That’s by doing nothing else but contributing $100/mo and letting the power of compounding work its magic. I used a simplified actuarial formula assuming $7500 contributed right away and $5200 ($100/month) contributed at the end of each year.
Above is a graph of what the value should be at the end of each year, of course the stock market has large swings up and down so this is in a perfect world of 7% compounding each year.
So basically, by the end of the second year, February 27, 2018, the portfolio should have been valued at $19,350.75. At the end of February the portfolio was approximately $20,500.00 and is still currently on schedule with a portfolio valued at $22,380.88.
I can’t wait to watch this portfolio grow! I’m sitting on about $500 in cash now and will likely wait at least 3 months before I make another purchase.
I’d love suggestions on a next purchase for BabyAAI.