Every year around this time people start posting their goals, weight loss challenges, recaps of the previous year and my personal favourites: Stock picking contests!
This year I entered two different contests – which are run slightly different.
Contest 1: Roadmap2Retire’s Stock Picking Contest
Sabeel from Roadmap2Retire runs an annual contest where he invites financial bloggers to choose 1 stock they think will perform the best over the next 12 months. Typically whoever wins this contest will pick a weed stock, or some penny stock that happens to jump 60% over the year. Instead of gambling on something like that, I wanted to pick a stock that I would be comfortable owning, and one that I intend on buying this year. I probably wont win the contest with a strategy like this, but I’m an investor – not a gambler.
The stock I chose was: Transcontinental (TCL). I’ve had this company on my watchlist for about 6 months, after it screened very well in my summer stock screen. I even wrote a follow up post about the company about 2 months ago, after it had dropped in price to a discount of about 30% from its 52 week high. You can read that full post HERE.
Contest 2: AssetBasedLife Stock Contest
Paul from Asset based life is also running a stock picking contest. This one is a little more in depth, as you are not required to just pick 1 stock and hold it all year. In this contest, you are given $100,000 (USD) of play money, and can buy as many companies as you’d like. You can also buy and sell throughout the year.
So far 15 people have registered for this contest, and I am happy to say I am currently sitting in 1st place (up 7.39% in 10 days!). Obviously there is still a lot of time left to go – but anytime I can brag about beating some fine people like Nelson from Financial Uproar, Paul from AssetBasedLife, DividendGrowthInvestor , Mrtako and others you know I will!
I am not sure how active I will be in this contest, ideally my picks will continue to make gains, and I won’t have to make many trades. The strategy I used was to pick companies I am familiar with, which I think have good growth potential and which had recently dipped quite a bit. Here is the list of stocks I started with:
|Stock||Price Purchased||# of Shares|
Currently all my holdings are up, except for Interrent Reit. which is just down .08%. My biggest gainers are Laurentian Bank (12.87%) and Richelieu (8.13%).
I’ll try to post a quarterly update each month until these contests are done!