Congratulations to Kara for turning her $500 deposited in July 2007 into $544.93, a 8.99% return in our 2007 stock competition. She had better performance than me that ended 2007 with $522.78, a 4.36% return. Here is Kara’s competition portfolio:

Here is my competition portfolio:

We both traded 11 stocks during the time, with her still holding one (JOSB) and me holding two (ZL which is way down and NLY which is up). Since our balance is under $2,500 per the new Zecco rules any trades we make now will incur a $4 commission.

Hypothetical: if we had paid $4 Zecco commissions on each trade
To illustrate how much commissions can negatively impact a portfolio, paying $4 commissions on all our 2007 trades would have resulted in an overall loss for both portfolios. Since the commission applies to both buy and sell: I had 11 buys and 9 sells = 20 total trades. Kara had 11 buys and 10 sells = 21 trades.

Me: 20 trades x $4 = $80
K: 21 trades x $4 = $84
= $164 commissions divided into total of both portfolios: $1067.71 (15.36% commissions)

And instead of a balance of $1,067.71 we’d only have $903.70 and be sitting on two of three stocks that are currently in losing positions. Using that scenario it would have been better to put the $1,000 in a savings account than play the stock market. Although this is on a smaller money scale, it shows how difficult the stock market can be to make money. With the addition of the commission in 2008, it’s going to be even more challenging.

The 2007 prize
When asked what she wanted as a prize for beating me in the 2007 competition Kara replied, “take our kids shoe shopping.” Man, I got off easy. I was willing to buy her something for at least the difference between our portfolios. (Note: I still will).

Speaking of the kids, they don’t go back to school until tomorrow? Strange. Why aren’t they going back today? Is there an assumption this is an after New Year’s travel (or recuperation for those who partied) day?

2008 competition begins
We’re going to continue our competition into 2008 with the same setup. As for prizes, same deal: if she wins again, I’ll buy her something using the value of the difference in our portfolios or vice versa.

You are welcome to and encouraged to follow along with the trades we’re making on our Google Finance shared page. The quotes are delayed 20 minutes.

I also am sharing my competition trade activity through Zecco social (my wife currently is not), which provides third party verification that, yes, I am buying and selling the stocks listed on the Google Finance shared page. Zecco doesn’t actually show the dollar amounts or number of shares.

With my permission, they picked me as one of their featured investors (pictured above), thanks Zecco! You can add me as a friend, if you like, from my Zecco profile page.

While on the transparency front, as of this writing I also own the following stocks that are not part of our ongoing competition and are not traded through Zecco: AAPL, EXPE, GOOG, IACI, IGT, SHOR, VCLK and YHOO. For newer readers, I do disclose in each blog post where relevant when writing about these companies.

Free real time stock quotes
If you wanted to see a more real time view of either a real or fantasy stock portfolio you could use something like freerealtime.com.

I used Free Real Time with the Apple Web Clip function in Safari to make a dashboard widget and just have to hit the Apple key + R to refresh to see how the portfolio is doing during trade days. Since my main machine is Vista, I wonder if there’s a Vista gadget that does something similar? If you know of one please let me know in the comments.

Overall I’m satisfied with the results in 2007, especially with the instability of the market the last six months, but I’d like to see at least either my wife, I or both get over $1,000 by the end of 2008. If our portfolios combined a year from now could reach the $2,500 minimum, even better.

How did your portfolio(s) perform in 2007? No need to share dollars, but percentages would be nice. Happy, unhappy or satisfied?

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