Saturday, 6 February 2010

today, was a momentous day in my life


ftse100 index year to date to 5th feb 2010 / yahoo.com

friday the 5th of feb was quite an extraordinary day, in many sense of the word. european stock markets took a tumble amidst concerns about government debts and swollen budget deficits. london's index of 100 biggest companies (ftse100) fell by 1.53%, not a big percentage you might say, but the index closed at the lowest point for the past three months.

momentous, because i, the biggest procrastinator, for the first time in my life, took a giant step, and bought shares on the open market. despite being a manic day at the office, i made the effort, obtained clearance from the compliance people in my office, logged onto my brokerage account, and placed not one but two orders. i've done online shopping numerous times, but this feeling of excitement, anticipation and fear, was pretty extraordinary.

the feeling of fear, that i could be losing my savings was rather strange. i've bought a £1,000 bag from a shop without much hesitation, and that to me was a sunk cost. however i felt happy, that money spent bought a momentary of joy. so how could i feel so jittery on the purchase of something which could potentially yield me returns? perhaps pride came into play, i do not want to pick a losing stock. of course with my fascination with the fashion and luxury goods industry, the two stocks i bought were from this arena.


LVMH year to date to 5th feb 2010 / yahoo.com

i previously shared my analysis of a few companies on this blog, and my sentiment is that most are pretty resilient to the current economic environment. admittedly a few retailers went bust, but i always believed this recession separated the wheat from the chaff. let's look at the share price of lvmh for the past one year as an example. a few days ago they announced full year profits fell 8% as compared to 2008. yet their share price showed no signs of strain.

i still think lvmh's stock makes a good investment, but that wasn't the stock i bought.


my purchases today wasn't an impulsive action, i did do my research and monitored the prices for quite a while. so the above was the first ever stock i purchased, a retail company listed on the london stock exchange. not particularly a cheap buy considering prices are near their all time peak, even when european stock markets crashed today. just go to show how resilient they are. i personally feel that they showed a very strong collection this year, so i am hopeful that their sales will go up.

i could have spent the money getting something from their new spring 2010 collection, but i guess i am at the point in my life where i don't need new clothes (mmm ok i want, not need), and the rock bottom interest rates are not yielding me much returns on my savings.

gosh i feel grown up.


the next stock i bought, is from a luxury retail firm, listed on the milan stock exchange. their share price took a little tumble for the past few days, i felt it was a good buy, so i went in. let's see how it will progress.


and so i took the plunge today. the stock market crashed and dented the prices, so i went in and bought the stocks. the very strange feeling, of plonking down a big part of my savings yet not seeing anything tangible right now. so here's to the future, to hopefully returns on my investments so i can buy, more bags!

so nothing tangible to show for my two new purchases today, but to share the multitude of emotions that went through me.

and so today was a momentous day. the day i took a baby step.


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12 comments:

  1. Thank u Joe, for this post. I like ur posts about financial times and reports. I guess that i would be a trader or something close If i was not what i am now.
    Hope that ur actions will grow up.

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  2. congratulations once more on an entertaining, yet insightful write-up.

    i like that you write about stocks, the luxury markets, and the financial health of certain fashion brands (with graphs no less!) in the layman's language. blog entries such as these make the daily visit to your site so worthwhile. your piece on luxury shopping ("what is luxury? it is a want...") is an instant classic, and a personal favorite.

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  3. Burberry??...well anyway Good Luck...and I'm sure you made the right choice...investments are a good thing! Just don't over invest...and just live life...but I think your choice was a great one!

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  4. THIS IS WHAT I LIKE ABOUT YOUR BLOG!!!

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  5. fun post. i really like how you connected the two matters. gorgeous tan messenger bag, too. you're always full of cool fashionable items!


    fashion atelier.

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  6. I've often thought about doing this, but I don't have the knowledge (or the guts)...maybe some day. Hope the investment goes well! :)

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  7. congrats! i am happy for you. :)

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  8. hey i really like how you not only express your fascination about fashion but also analyzes the business aspect of it. I find your blog particularly fun and interesting to read because i, too, am a fashion-oriented person even though I majored in finance (more specifically financial valuation and derivatives...)

    Thanks for your post and hope you baby step leads to a positive gain.

    http://www.clowverk.com

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  9. Hey Joe,

    I think I may need the services of a finance guy I can trust.

    How about we meet to discuss.

    X

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  10. well done, joe. baby steps to world domination!

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  11. Hi Joe,

    I just saw this post now; I've been watching a few luxury retailers, but haven't put money in myself yet. I'm not sure if you knew, but as a shareholder in Mulberry, you get a 20% discount (you need 500 shares ~£800 worth). I think that is a pretty nice perk. Have you come across any other perks for shareholders with retailers?

    Scott

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  12. scott: that's quite a good incentive! but i'm not really a mulberry fan, so 20% is not good for me. not heard of other similar incentive, but sure is a good idea.

    i sure hope the company i bought shares from will give me a discount, let me call them ha!

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what's he wearing?