If you have been following for a while, you know that Building a Portfolio with $150 came and went pretty quickly. It was too hard to keep things interesting with such little trading happening. I have started a new series I hope that has a much bigger impact and longevity… The $50 Portfolio!
Cash App recently added stock trading to their app. Very little fees ( just a small government tax on a sale), essentially free to use. Similar to Robinhood, but different in that you can buy fractional pieces of shares!
So in hopes to get more people using this service, I thought I would start a series and see what I could do with $50.
Because I already used the app for a few small trades, my beginning balance for this experiment is $50.49 on Tuesday, November 12th, 2019.
I encourage you to download the Cash App through the links on this page if you are not already using it. Doing so gets us both free money once you load your cash card. I also encourage you to follow along in the trading and offer up your own advice in the comments. I am not a licensed stock trader, I do not insure anything I say is correct.
Just a guy with $50 bucks tracking my journey to make it into a real amount of money!
My Opening Day Portfolio
Disney – $6.96 = .05 share
Alphabet – $6.71 = .005 share
Nike – $5.57 = .062 share
Berkshire Hathaway = $4.99 – costs so much per share i own too little to even count!
($332,915.59 per share)
Apple – $4 = .015 share
Boeing – $2.97 = .008 share
Planet Fitness – $2.69 =.039 share
Bank of America – $2.00 = .06 share
Visa – $2.00 =.011 share
Texas Roadhouse – $1.99 = .034 share
Amazon – $1.98 = .001 share
Facebook – $1.96 = .01 share
Beyond Meat – $1.69 = .022 share
Microsoft – $1.02 = .007 share
General Electric – $1.01 = .088 share
McDonalds – $1.00 = .005 share
Walmart – $1.00 = .008 share
Coca-Cola – $.96 = .019 share
It is crazy how diverse you can spend $50!!
With a minimum purchase of $1.00 and a custom amount after the minimum is met, you can split $50 a lot of different ways. This gives people access to stocks they otherwise could not have afforded before. I will be testing out if the fractional method is actually beneficial, seeing how much I can get the portfolio up to, and before too long if all goes right start having some real money in this account!
Some of the numbers are a little odd because I had them before I started the experiment or they went up or down a percentage point after buying them.
It is my goal to keep a diverse portfolio of the major brands and trade them often. Going with the old, ” buy low, sell when higher” idea.
I do not plan to add anything to the fund, leaving my Robinhood and Groundfloor accounts for my other investing. With that said, if people who are following this sign up for Cash App, I will be applying all of the bonus money to the fund.
Please join along!
If you haven’t signed up for any of the above mentioned things, below are links that will get us both free stocks or money, so please consider using. Good for everyone!
I like the idea of fractional trading for its ability to give access to larger brands. With that said I also still have to research if it is actually beneficial.
My portfolio has about 18 stocks in it for the start. I invested very little across a wide field. Pretty early on I think that I will sell off some of the $1.00 pick ups for only a penny or two profit and put that full amount into already owned stocks.
I think it is great to have variety, but going heavy on big names on different days is appealing to me.
With the access to big names and limited fees, day trading is a real possibility it seems. The other thing to look up is if through the app you get dividends, that would make a difference for sure.
As far as trading goes, Robinhood still wins hands down. Cash App though, for their entry into the game did a great job and I will be looking forward to seeing what I can do with it.