Home > Personal Finance, Project Pocket Change > Pocket Change Portfolio – Part II

Pocket Change Portfolio – Part II

My next purchase for the Pocket Change Portfolio occurred near the end of 2004. Although a much different entity today, the company I chose had a long but controversial history, distributed a nice 4% dividend, and at the time was quite speculative. In November and December, I made two purchases of $132 and $77 of Altria (NYSE: MO).

Generally not recommended, my purchase of this company was very personal. Anyone who knows me well, knows that I absolutely hate smoking. So why would a cigarette hater purchase a company most known for its tobacco product? The answer is simple. I realized that tobacco is not going away, no matter how many lawsuits are made. If I have to be around smoking and smokers, I wanted to be making money off of their activity, buying MO was the logical choice for me.

Since my first purchase and several subsequent purchases, Altria is not the same company. Over 2007 and 2008 it has split up into Altria, Kraft Foods, and Philip Morris International. I have not sold any of the spin-offs yet, but may as soon as I come across another worthwhile investment. Strangely, I feel the best company to keep would be PM International, however it does not meet my dividend qualification yet, sad. To date, MO has been my one of my greatest investments, had I started with a “real” amount of money I’d be sitting on a nice chunk of change. But, since this is the pocket change account… my total cash gains have been small.

Disclaimer: As always, please do your own research before deciding whether any stock I mention is right for your portfolio.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: