As I detailed in a post several months ago, I have created a small account using the Loyal3 investing platform. I am using it to demonstrate how small, incremental savings put aside in an intelligent way can gradually grow to something meaningful.
I’ve been putting in $10 every two weeks or so into Berkshire Hathaway stock. Because Loyal3 is fee free, I can dollar cost average into the position without getting a ton of capital wrested from me in commission fees. In my opinion this is a great step toward making investing more accessible to the general public. The list of companies to choose from is still pretty small, but it seems to be growing every few months.
The BHIP is now over $148 in value, which correlates to slightly over 1 full share in ownership! Now, this might not seem like a big deal to many of you, but this is my first full share of Berkshire Hathaway – I’m quite proud of it. I’m very much looking forward to add to the position gradually over time.
Regardless of the stock price, I plan to keep adding small amounts of money each month (Exceptions exist, of course. If the P/E ratio suddenly jumped to 30 or something, I’d probably sell and find a better use for the funds).
Another thing to note is, I don’t invest via auto withdrawals from my checking account. Every purchase is deliberate. Although the convenience factor is obvious, I am choosing to make purchases manually because I feel it a lot more when I do so. It helps me solidify mentally and emotionally that I am investing my hard earned cash in a profitable enterprise. I don’t know, maybe that sounds silly, but for me I get a little bit of satisfaction every time I get to hit the “buy now” button.
I feel like because I have been reading and studying so much about personal finance and investing in the two years, I feel a strong need to take action and start buying shares of great companies. Because my wife and I are totally focused on paying off our mortgage as quickly as possible, our cashflow is pretty much spoken for, down to the last dollar. Slowly building up the BHIP helps me get out my strong urge to invest without disrupting my family’s overall financial plan.
Some people get their kicks from buying motorcycles or going on spending sprees at the mall. For some reason I realize over the last year or so I am not really one of those people. Although I enjoy spending to a certain degree (I love travelling as well as other hobbies), I get a high degree of joy from saving and investing surplus cash.
Anyway, here are the current numbers for the BHIP. I’ve added a line to display my current ownership of shares, for the sake of remembering that even if the portfolio value drops in half tomorrow, there is a visual indicator of my level of ownership in the actual business, which is important to remember.