SEPTEMBER 1994
Now even quicker because I'm sure you understand how simple and repetitive the system is and soon you'll see its power. Try doing September 94 on your own. Remember to start by looking up the price of Claire’s Stores. Since this is an example, of course you can't but soon you'll be doing your own stocks and this will be the first step.
Okay, the price has risen and is now $12.50. Write down $12.50 and then fill in column 9 that didn't change since no buying last month. But column 8, SHARES OWNED, did change. We sold 47 shares last month. So subtract 47 from the column 8 total from the prior month (654 - 47 = 607). Write 607 in column 8, SHARES OWNED. Now figure column 6 CASH. You started with $3,334 and must add the $584 you got from selling the stock. So $3,334+ $584 = $3,918 + $20 for INTEREST = $3,938, WRITE in column 6, CASH. Write $20 in column 12, INTEREST.
Then compare column 4 with column 9 and see which is higher. SHARE VALUE is still higher $7,588 To PORTFOLIO CONTROL’s 6,700. You can figure you have a potential (SELL) of $888 that you write in column 10 in ( ). You glance at SAFE and see its lower than your potential (SELL) ADVICE (888-758 = 130), so you write (130) in column 11, MARKET ORDER (SELL) BUY. You have a sell. Now divide $130 by $12.50 and you find you sold 10 shares. In this example I am making any sells over $100. Many years later I have decided that is too low because it generates too many commissions and so I've basically raised the amount of any buy or sell to a minimum of $300 so you would pay fewer commissions and sell at higher prices and buy at lower prices. Write (10) in column 7, SHARES BOUGHT (SOLD). Add up the value of your portfolio in column 13 – remember it's CASH + SHARE VALUE. Your PORTFOLIO VALUE is $11,526.