I didn’t know too much about the stock market when I first started to take notice. The only reason I began to focus more on stocks is because of series of events that led to the rapid fall of a stock market crash. I remember watching CNBC’s Squawk Box, and on live TV Jim Cramer ranted about the Fed and of the banks over-inflated stock prices.
Cramer’s rant was on August 3rd, 2007. At the time, due to my lack of knowledge on how to best approach the stock market, I was not very diversified in the number of stocks I owned. I had too much money stuck in one stock. I also didn’t listen to Cramer following his rant, instead I kept my money in a stock that ultimately suffered terrible losses.
Since then, I decided to do something about it rather than write the losses off and wither on. I wanted to earn my money back. So I joined Motley Fool CAPS under the name tycoonbull, started to watch Mad Money and other business news sources, and I paid more attention to stocks and what the best practices are on how to make money in the stock market. I did a lot of research and a lot of reading on it, and eventually I found my groove.
One of the cool parts about becoming a Motley Fool CAPS investor and member is that they keep an eye on what is called a player’s “100-day mark.” After all, Presidents are often measured by what they achieve during their first 100 days in office. So it only makes sense that CAPS Fool players be held to the same level of accountability – especially if others may or may not invest in a stock based on the recommendation of others. Therefore, Fool contributors watch the performance of some of the best CAPS Fool investors – called All-Stars – who have achieved top-player ratings after garnering a score of 100 in their first 100 days on CAPS.
During one of the most volatile times in the history of the stock market, I managed to make some pretty amazing stock picks. I also made a few risky but potentially gratifying stock picks. Something I learned about diversification is that, if your portfolio is diversified, allocating about 10% of your portfolio in risky stocks for someone my age isn’t necessarily a bad thing. One of those risky stock picks for my Motley Fool account was for private student loan provider First Marblehead.
Prior to picking First Marblehead (NYSE: FMD) it had suffered a series of misfortunes that were not of its own making, and its stock had suffered a meltdown in the process.
At Motley Fool CAPS, contributor Rich Duprey wrote an article on “A 1-In-100 Investor,” featuring a stock considered, by me, to be “A 1-In-100 opportunity.” Duprey wrote the following about my stock pick.
“Even though [First Marblehead’s] stock had been beaten down and it has a seemingly solid balance sheet – along with backing from none other than Goldman Sachs, though the final amount will undoubtedly be much less than originally anticipated – those two news items sent shares down 17% and 35%, respectively, in response.
The risk of not being able to securitize student loans in a credit market where there is little demand these days for such investments weighs on investors like CAPS player tycoonbull, who realizes the short-term outlook isn't bright, but if you have a long-term horizon, First Marblehead might make sense.”
Deprey also added a quote in there from me, as tycoonbull, on First Marblehead and its future for shareholders. Despite my 65-ish percent accuracy rating picking stocks, ironically, thus far, the First Marblehead pick hasn’t turned out to be right – yet. Luckily, as my quote and prediction says from the article, “I'm standing firm; a risky outperform with a 3 year time-line, my prediction remains as is.” I’ve still got over a year before my 3 year time-line ends, so I could still be right!
Going back to how I got the name for my blog, in spite of incorrectly (thus far) picking First Marblehead to turn around within three years of its fall, I like the sound of “A 1-In-100 …” so I ultimately chose to go with A 1-In-100 Blogger.
Since then, I’ve learned a lot more about better SEO practices and now realize the name might not be the best URL to get found by Googlebots and other Internet search spiders. But it still works for me as a unique name. So that’s the story on how I got my name and blog title, A 1-In-100 Blogger.
A 1-In-100 Blogger: The Humor of Fantasy Football Trash Talking
* How I got my blog picture logo.