Introduction
It is my personal finance research. I spent time to review my files and then I found two documents related to my stock and mutual fund purchase. I like to do a case study on them.
Case study
Life is so challenge and I also like to share my limited experience. I am a single person and I do not know what the single means. In terms of personal finance decision, I like to write down my decision making mistakes and share with others.
My problem is to buy high and sell low. I do not understand time is on my side. I was so young back in 2002. I have over at least 30 years to benefit the growth of economy, what should I worry about?
I like to do a case study on a mutual fund VIGRX.
Here is the folder containing my purchase detail in my personal finance folder. I had Atlantic Entertainment 401 K rollover in 2001. Here is my 401 K statement at the end of 2010.
Share Price Action
2001 Dec 10, 2001 Fidelity advisor equity 158.915 $25.90 Bought
I sold the mutual function Fidelity advisor equity in 2012 with loss over $1000 US dollars.
My analysis
I sold mutual fund in 2002. I totally forgot the fund after Feb. 27, 2002. I did not have job from 2001 September to August 2002, I was a home maker. I need to do research how to be a good home maker.
Today on January 1, 2019. Fidelity advisor equity has price $69.10. If I took the loss in Feb. 27, 2002, and do nothing, my original $3000 dollar fund will worth more than $10981.00, without considering dividends.
Price review
VIGRX fund - from Vanguard website - January 1, 2019
Performance review
VIGRX mutual fund - January 1, 2019
Actionable Items
In order to solve my house problem in the city of Vancouver, I decided to work on my personal finance research. I like to figure out what decision making process I have and how I can make improvements.
In year 2000, I have a good friend from FAU shared me with the tip to buy growth index fund, so I had no idea what to do, I decided to purchase four funds instead. Growth index fund minimum $3000 dollar, other three funds $1000, $500, $500.
When the fund price went down, I really did not understand what the problem was. I just sold it and took the loss. After that, I did not review and try to purchase back to cover the loss in 2002. If I understand the growth index fund long term is up, then I will get back and keep last 18 years.
I like to call my finance lesson worth over $7000 US dollar, 18 years time. Personal finance No. 2, growth index fund, $7000 at least loss.
My learning and decision making has flaws. I listened to my friend's advice, I decided to open IRA stock account, I did purchase. I did not spend time to review my every piece of transaction, and also analyze what I should learn from the transaction.
I have to push myself to learn decision making. Go for one case a time, and go over to review my choice. What is the problem? How to recover? Should I go back to purchase again?
Since I am a single person, I choose not to share my struggle and is shamed about my wrong judgement. Today I like to share and push myself to learn from the mistake, and be a good manager of my money.
I have to push myself to be gentle, and kind. Document every purchase, and do not try to kill wealth from a seed. Specially when I took loss, it was pain. But that is the chance I can really grow. I have to believe in USA, USA economy, and try to think about how hard Facebook, Amazon and Facebook to recruit best problem solvers to work for them. People with best education, reasoning, and family support, there is no way the whole economy will stay down.
One of ideas is to purchase VIGRX mutual fund in 2010 instead of closing the account for investment and IRA. If I purchase growth index fund at lowest point of last 15 years, in 2010. If I put another $3000 dollars, or $6000 dollars, then I will have very successful story to share after 18 years.
Follow up
April 22, 2020
Based on my research, MSFT stock ten times more from 2010 to 2019. So if I hold MSFT 10 shares stock purchased back in 2001, then the value of stock 660 US dollars will be worth more than $6600 dollars.
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