Milestone - 13,000 feet high

Aside from my various mountain climbs in the Alps and the Rockies, another "13,000 milestone" has finally been reached - the Dow Jones' closing last night!

The Dow Jones Industrial Average (DJIA) has not reached such a high level since May 2008, nearly four, long years ago. Since its rock-bottom level around 6,600 in March 2009, the average has nearly doubled! Unfortunately, I came in the game late - with my first stock being Chevron (CVX) in October, up only 3% - but that article is for another time.

However, I have had my luck from my late stock-market approach. My leading stocks, Philip Morris (PM) and the TJ Maxx brand (TJX) have grown more than 15% since I bought them a mere three months ago. The successful milestone indicates a very bullish economy, however, in the words of Warren Buffett, "Be fearful when others are greedy!" - an appropriate quote for this situation.

At this point, many stocks are heating up, like Apple (AAPL) and Priceline (PCLN). The recent spark in the market, allowing the milestone of 13,000 points to finally be reached, has completely changed my view of the stock market. Every day that the market climbs higher makes me feel even more uncomfortable, sitting on the tip of my seat anxiously hoping that a crash is not imminent. For tax reasons, I don't plan on withdrawing any of my stocks before the end of this year, adding to my nervous spell.

Unfortunately, the extra "leap day" this year hasn't helped the stock market, with a -0.41% return for the day (oh no!) - it's only a matter of time before the trend may reverse and the possibility of a double-dip recession still exists.

What is your motto for a bullish economy? Follow the site, refer it to your friends, and leave a comment!

Enjoy the extra day this year,
Alexander, Teens Invest! blogger

Buying into Brand Names

It's Championship Sunday! Lots of commercials are coming on tonight during the two games (go 49ers!) and there are many different companies that will advertise their products in the coming weeks. Although I'm not intrigued by many commercials, I am interested in some of the companies' stocks. One company I hope to see advertising is Coca-Cola (KO), primarily because I am interested in purchasing a blue chip stock soon to diversify my portfolio. This soft drink giant is notorious for its great effiency year after year. With increasing dividends for the past four decades, this company always has stellar performances. It consistently achieves better results than its rival Pepsi (PEP), especially because of its strong overseas markets in developing countries. The real question is: can we trust countries like KO to outperform the market?

Yes. With an expectionally low P/E ratio of 12.5, now seems like the best time to invest in this mega-business. The company has also maintained a strong 19.4% EPS growth rate over the past five years, a number significantly stronger than its other large- and mega-cap competitors. Growth is expected to continue to be strong for the next half decade in the low double-digits, and expansion in areas such as Asia will help to fuel this surge. But can we trust Coke simply because of its developed brand name?

That answer is also yes. Rated the top global brand name by Interbrand in 2011, Coca-Cola is a model for all other companies out there, beating well-known IBM (IBM) and Microsoft (MSFT). Essentially, you can't go wrong with an everyday product, another great reason to invest in companies just like this, including Procter & Gamble (PG) and Google (GOOG). If Warren Buffett has invested large sums of money in it, so can we, right? Not necessarily; you should only invest in companies and industries that you know well, but it is a very useful guideline that provides shareholders with optimism. Overall, Coca-Cola is a great company to invest in for a mix of success, efficiency, and moderate growth.

Do you believe that brand name stocks are good investments, or is the growth too slow to keep up with the market? Leave your input below and enjoy the rest of the weekend!

2 Stocks I Regret Buying

Hello to all! It's been a while since I've posted; I've been enjoying the cold, holiday season. Who's in the mood for some Starbucks (SBUX) now?

Coincidentally, I was considering going long with SBUX on Tuesday when the market opens. It presents itself with wonderful opportunities, especially for a growth investor like me. Earnings are expected to grow by more than 15-20% annually, and it is expanding its market into Asia, just as my best-performing stock - Philip Morris (PM) - has also successfully done.

However, that's not what I wanted to talk to everybody about today. This article will focus on the biggest mistakes I have yet made in my investing career. And they go by the names of Nordstrom (JWN) and Family Dollar (FDO).

When I first bought bought JWN in November, I suddenly realized that it would be a major problem. Unfortunately, I decided to invest $480 into the stock, a decision I have so far regretted. I don't think I have ever seen this stock in the green since I bought it a few months ago. This used to be my worst-performing stock, often hovering around 2-5% below my purchasing price, until FDO suddenly collapsed later last week. The stock plummeted more than 6% in a matter of minutes due to poor earnings results, as far as I understand. Since the catastrophe, the stock has simply gotten even worse, yet I do expect a rebound over the course of the next few months.

I do remain pessimistic about both of these stocks, especially Nordstrom, but I do not planning on selling either according to Warren Buffett's principle, to be fearful when others are greedy and greedy when others are fearful - but I don't plan on buying anymore of these horrible stocks either!

So, what stocks do you think will fare well in 2012? Will Starbucks (SBUX) outperform or underperform the market? Leave a comment below and share your opinion!

Until next time,

Alexander

A Warm Welcome

Hey everybody! I hope you are enjoying your holidays.

I'd like to extend a nice, warm welcome to everybody reading my new blog, "Teens Invest!". Hopefully I will be blogging often about all my experiences with investing, including the stock market and government bonds, as well as a variety of other financial sectors which I will provide information upon.

In the future, I wish to enter the financial field, hoping to become a stock trader or an investment banker. I have had an interest in finance ever since I was a little boy, but it was shadowed by a passion for architecture until those dreams fell apart when the classes at my school were full.

For the past year or so, I have been tracking stocks until I finally built up the courage (and cash) to make my very first investment in October upon months of intense studying. I am currently enrolled in AP Macroeconomics until January, which also gives me a better understanding of the field.

Please join me in my journey of building up my portfolio as I write my life story. I would appreciate any and all support, including sharing this with your friends or interacting on this blog.

Cheers,
Alexander, creator of Teens Invest!