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My Best “Investment” Ever
By JLP | May 12, 2006
Believe it or not, this is my best investment ever as far as return on investment goes:
I bought this Hot Wheels VW Van sometime in 1995 for $.79 ($.86 including tax). It is now worth somewhere in the neighborhood of $60. Doing some quick math on my Texas Instruments BAII PLUS calculator, I figured out that this particular Hot Wheel has had an annualized rate of return of over 47%! In another 11 years, it should be worth $4,186! I’m teasing. I don’t think it will ever get that high. It’s fun to think about though. I just wish I would have bought 10,000 of them!
Now, if you took my whole “portfolio” of Hot Wheels into consideration, my rate of return is NO WHERE NEAR 47% per year.
So, what’s your best investment ever?
Topics: Investing | 3 Comments »
May 12th, 2006 at 11:54 am
I’ve never actually traded options with real money, but I recently “bought” some call options (paper trade) for about $1000, and sold them for about $2500 two weeks later. How’s 150% return for a 2 week investment, eh? But listen to this: if I “kept” them for another week, I could have “gotten” almost $3500, or a 250% return in 3 weeks! This has been the best performing option pick I’ve had … still unsure I want to get into this thing for real, though.
May 12th, 2006 at 1:05 pm
Well, I purchased $15,000 of put options on corn that I hadn’t planted. (Yes, I farm for a living). I sold it three months later to the grain buyer for a profit of $3500. Not too shabby for this ‘uneducated’ farmer.
May 12th, 2006 at 3:16 pm
My best investment ever was learning about risk arbitrage and in particular going private transactions. I think my best trade was FragranceNet.com which I made a 63 percent gain in 204 days, or a 139 percent APY! The terms of the deal were known up front, so the risk was relatively low.
The overall performance of my Special Situations Real Money Port is 23.5 percent APY since October 19, 2004. This account is my son’s Coverdell Education Savings Account. I’ve turned it into a mini hedge fund, which is one of the best features of the Coverdell ESA.
JLP, can you figure out when I’ll have enough money to send my son to Harvard at this rate?