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New Index Fund

1/30/2018

Today I decided to get out of a few small positions I had taken in my IRA account and invest in an index fund for cannabis.  Index funds are single shares you can buy that have ownership in multiple companies.  Fund managers can make funds to any index they want.  The most well-known Index Funds are ones that follow the S&P 500, the Dow and the Nasdaq.

I wanted to adjust my portfolio to have larger positions, especially in more stable stocks and funds.  If you invest $1000 in a stock and it goes up 5%, you earn $50.  Invest $5,000 in the same stock and you will earn $250.  This is not to say it’s not worth investing small amounts if that is all you have.  While it might make sense to invest smaller amounts into more volatile stocks, I think it is better to invest larger amounts into more stable stocks.  NEE and GSK are probably good stocks that will make money over time, but I don’t think they are the best fit for me right now.

MJX is geared toward the emerging cannabis market.  They have stock in foreign and domestic companies, those that are involved in the recreational market as well as the industrial and medical.  I only just recently stumbled across this fund and thought it would be a good buy for my IRA.  As long as laws across the country and around the world continue to allow more legal business in this market this fund should grow.  I expect this fund will follow the trend I have seen from a similar fund available in Canada HMMJ.TO.

Here are my transactions:

I sold all 19 shares of GSK for $38.21 each total sale was $719.02
I sold all 4 shares of NEE for $155.2456 each total sale was $614.01

If you add what I just sold it for, plus the dividends, then subtract the price paid, I lost $27.69.  All part of the learning curve.

I bought 49 shares of MJX for $35.37 each, total cost was $1,740.08

 

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