Since it is beginning of the year, I am creating a new 28 stock portfolio for tracking. The following are the rules we follow:
1. Equally divide $100,000 among the 28 stocks. Then, substract $14 (transaction fees for buying and selling) to get the amount you can use for buying any individual stocks in the portfolio.
2. The amount of stocks for each security will be adjusted to the nearest whole number. For example, if the number of stocks you can purchase on a security based on the first rule is 10.3256, buy only 10 shares. This way, it is easy to track.
3. We will re-balance this portfolio every quarter. My study showed that rebalance in general helps to increase the overall return.
4. For tracking purposes, I will use the highest price of the security on Jan 2 (the first trading day of 2018).
5. During rebalance, I will use the lowest price while selling and highest price while buying for that day.
Here are the new 28 companies.