I’ve Added Two More Companies To My Upcoming Risky Trade
By: Jordan Fraser
Tags: Money, Stock Market, Investment, Column, Investing

I’ve Added Two More Companies To My Upcoming Risky Trade

It’s almost time to pull the trigger on the riskiest deal of my life

Photo by Loic Leray on Unsplash

According to reports, the Dow slipped again by 3.5% on Friday afternoon to close the week once again on a low. The New Zealand Stock Exchange faired a little better, enjoying a good Friday morning, followed by a drop that finished the week down 2%.

In happier news, I received my royalty payment from Medium today and have transferred the money I previously agreed to invest into my share trading account.

I expect the account to receive the funds by Monday or Tuesday; once it arrives, I’ll make the trades right away.

If you’re not sure what I’m talking about, allow me to catch you up.

In a previous article, I pledged to invest $2,000 into the current depressed stock market.

My plan was to focus on the sectors that are most hurting because of the spread of coronavirus. This mostly includes companies that rely on travel, trade, and tourism.

The reason I’m doing this is to prove my theory that investors should feel excited about increasing their investments during this terrible time. In my opinion, this is not the time to sell your shares, as much as you might want to.

Pulling out your funds during a crash only serves to guarantee your losses. My theory is that during times like this, we all need to hold on and wait for things to get better.

In 2009 a lot of people pulled their money from companies that were depressed at the time, but later bounced back after the recession ended. Anyone that didn’t hold on until the end made a loss, whereas everyone else kept their money. The current stock market crash has happened in response to a virus that will eventually go away.

My plan is to fight my fear and plunge into the fire headfirst and try to come out the other side ahead. So what I mean to say is that I’m literally putting my money where my mouth is.

Photo by Nosiuol on Unsplash

The Trade

Here are the companies I’m buying into, and how far their value has fallen this year as of Friday, March 6th 2020.

I’ll also add the price they’re trading at after market close.

Synlait Milk; SML: $5.74 down 45.23%

ANZ Bank; ANZ: $23.4 down 18.89%

Westpac Bank; WBC: $22.6 down 19.97%

Air New Zealand; AIR: $2.08 down 17.79%

Port of Tauranga; POT: $6.710 down 10%*

*The percentage quoted for Port of Tauranga only represents the last month. If we factor in the entire year the company is actually up 23.12%.

Originally I was also going to buy US Large Growth Fund, which is not a company but an index fund. But I’ve since decided to cut this choice and just stick to company shares.

Instead, I’ve decided to add another port to the list, South Port New Zealand. I expect the port to continue to fall in value while people aren’t travelling, and Chinese ports remain closed for trade.

I’m also going to buy shares in Freightways, a New Zealand based express package and business mailing service.

Here are the stats for the two newcomers.

South Port New Zealand; SPN: $6.61 down 6.24%

Freightways; FRE: $7.38 down 7.4%

So there you have it, my updated list and current company prices.

Air New Zealand

ANZ Bank

Freightways

Port of Tauranga

Synlait Milk

Westpac NZ

South Port New Zealand

Come back again after the weekend to catch the next update featuring the trade itself eek!

I will write and post it as soon as I’ve made the trade.

The update will include all details including how many shares of each company I bought, and exactly how much money I spent on each company.

Then each week after the trade I’ll write another update that’ll inform you on exactly how high, or more likely how far my investments have dropped.

I’ll be brutally honest with exact dollars and cents, no vague bullcrap.

It’s going to be a very exciting and bumpy ride, so I hope you’ll join me right here on Money Clip so that we can take this ride *together.

Together in this case means I take all the risk, you have all the laughs. Sound good?