GE stock investment: 500 share of GE stock purchase business plan

May 23, 2020

Introduction

It is the first time I made purchase on stock, based on my previous two purchases, I learned that the bottom price of last 356 days is reached around $5.52 dollars, so it is time for me to make 500 shares.

My purchase

I like to record the purchase history first, and then GE stock price compared to S&P 500.

Yahoo finance->My portfolio->

My business plan

I like to think about carefully so that I can make good decision down the road. 

1. I did two trials and learned that the lowest price is $5.52, I only made purchase 40 share;
2. I do not have to purchase at the bottom price, I just take the risk of $1 dollar loss for each share, 20%, and make purchase of 500 shares on May 22, 2020;
3. My business plan is to design a position which will beat SPX in short term, one or two years. 
4. More on step 3, my expectation of return should be 100% in two to three years;
5. More on step 4, in other words, I like to see those $3846 dollar investment will bring gains over $3846 dollars in two to three year;
6. I can do more research on GE stock, if GE stock continues to go down, I may purchase more if the bankruptcy is impossible. 

Short term plan

1. It may be possible for a short term return in 3 months 20%. I will think about what to do. 
2. I will do more research on GE stock, and I only like to sell if I like to move the fund to SPX fund for more diversification. 

Follow up plan

I will use yahoo finance -> My portfolio to track performance daily.

Challenges

There are a lot of stocks in last two month with more than 40% recovery. I also had SPX 500 index fund to recover over $5,000 dollars loss. What I missed is to invest those bond fund $20,000 into something last month, April 27 to May 23 is a month with more than 40% gain for a lot of stocks as well.

Actionable Items

Follow up

May 28, 2020
GE stock went up 14% after I made purchase 500 shares up to May 28, 2020. The rebounce was quick, 14% less than 5 business days.

I should think about investing $11,000 dollars cash on May 15, 2020, 28% loss. Since the downside is very low, it is time to take risk to let GE stock go up.