We entered the CNBC Stock Challenge that started on April 4. Everyone started with a fictitious $1 million dollar account and over the past month we are up 41.1% with an account value of $1,411,659 as of the close of trading on May 2. While we are proud of our top 1% ranking (there are approx. 50,000 participants) we were hoping for a top fifty finish.
Our strategy during the game was to:
1) Invest in a hot sector – we chose gold
2) Invest in no more than 2 stocks
3) Invest in the lowest share price possible (the rules of the game stated the company needed a market cap of 500mil)
4) Invest in profitable companies
We ended up investing in NXG and IAG, with about 80% of the money going into NXG. While this strategy worked well in the game, it is an unrealistic strategy that one would employ in “real life”.
Wednesday, May 03, 2006
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