Following the rules established by Ben’s portfolio, I have begun construction of my own. I am looking for approximately 15 stock’s with no more than 2 in each respected industry. Taxes will be ignored, and commissions will be $10.
American International Group (AIG) I like their business model, as insurance creates steady cash flow consistently with only periodic payout’s in claims. Insurer domestically and abroad with a low PE and high ROE, ended 2005 with $853 billion in assets on their books, with net income over $10 billion. I purchased 105 shares at a cost of $63.01 for a total cost of $6,626.05.
Cherokee Inc. (CHKE) I was initially drawn in by the high ROIC as well dividend yield being produced by this company. There is business is the marketing and licensing of brand names and trademarks for footwear and accessory manufactures. I purchased 121 shares at $37.07 for a total cost of $4,495.47.
That ended my purchases for this week, as I will look to invest the remainder capital shortly as I find attractive companies.
Ticker Total Cost Remaining Capital
AIG $6,626.05
CHKE $4,495.47
$88,878.48