Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Warren Buffett’s advice in a Crisis

Given the downward trend in the market the past couple of weeks, I thought it was appropriate to re-quote some of Warren Buffett’s famous sayings that apply to time like these. We are, after all, value investors. Volatility is our friend, and nothing about this downturn was unexpected except the timing. Our government continues to […]

Portfolio Updates

This is a quick update on the status of both portfolio’s for their first month. From here on, I will only update quarterly, because a shorter time frame than that seems silly. Small Investor Portfolio Current Positions DUCK up 27.2% IFON down 13.2 % Closed Positions ORXE up 31.% including commissions. This is all well […]

Value Investing Strategies for the Small Investor and 80-20 Portfolios

When you begin to invest you need to develop an investing strategy. Having a strategy is like a google map. It will help direct you down the right freeway and hopefully help you avoid the pitfalls, er traffic, and get to the destination you want.  If you are at this website you know my overall […]

ORXE – Ore Pharamceutical Holdings – NCAV pharma stock – Bought and Sold

On Tuesday I bought 1600 shares of ORXE, a Net Net pharma stock for $.30/share or $485.00 including the ChoiceTrade $5.00 commission, for the Small Investor Portfolio. I sold today at .40/share for a profit $150.00 or nearly 31% including commissions. This is not my usual trading style. But as much as this was a […]

DUCK – Duckwall-ALCO Stores a NCAV stock BUY – Small Investor Portfolio

I am still in catch up mode from my brief hiatus in posting. While I stopped posting , I did not stop investing.  Last Thursday April 8th I purchased 35 shares of DUCK – Duckwall – Alco Stores at $13.75/share  for the Chroma Investing Small Investor Portfolio. Including the ChoiceTrade commission of $5.00 this was […]

IFON – InfoSonics NCAV stock BUY – Small Investor Portfolio

Last week, on 4/1/10 I purchased 650 shares of IFON – Infosonics at $ .7719/share  for the Chroma Investing Small Investor Portfolio.  This was a total investment of $506.74 including the $5.00 ChoiceTrade commission. The price dropped into the low .60’s until today where has recovered to .72/share.  I bought the shares because IFON is […]

Best Online Broker for Penny Stocks and the Small Value Investor

This is really the third in the series of Investing 101, the second of which discussed setting up a Small Investor Portfolio. But the title would have been too long if I left all that in. As value investors we are not just interested in value of our stocks but the process in which we […]

The Chroma Investing Small Investor Portfolio

This is really the second in the series of Investing 101 that I previously started.

It is my intention to start an investing account with just $2000. The reason for this is that it is an amount of money that one could save in a year with less than $200/month. I will add $200/month to the account to mirror what a small investor might be able to do. $2000 is also an amount that you may have on hand, saved from not buying a Starbucks latte every day for a couple of years. O.k., lets not get that extreme. Like all the investments detailed on this website, all trades will be real money, so all gains or losses will be actual and reported on this blog. I will call this the Chroma Investing Small Investor Portfolio.

An account of this size will allow you to hold 3 or 4 equity positions and thus to have a focused value oriented portfolio. Starting with a small amount will also force a certain amount of discipline in buying. Knowing in advance that you will initially only be able to hold 3-4 positions will focus our attention on the quality of the investments to make sure that we are making only the best investment decisions.

The investing philosophy will be straight forward: value investing with an emphasis on NCAV and other deeply discounted asset plays, special situation investments, or other empirically supported value investing approaches, all with an emphasis on maintaining a margin of safety and keeping an eye on understanding the investment risks inherent to each company. I will concentrate on small and micro cap companies, where the smallness of our portfolio is actually an advantage over big money investors. I will look for the best value, and not shy away from Penny Stocks, if that is where the value leads. My intention is to avoid leverage, and any investment involving margins, including options and futures. It is possible in the future that I will develop a value approach that looks at investing against the market or an individual company if I can satisfy myself that such a strategy can be made in a beneficial risk/reward scenario.

I do not intend to invest in mutual funds, ETF’s or bonds. Nor will their be any speculation on commodities, currency or other other bets outside of my ken.

Tomorrow I will begin the search for the best online broker for this account.

  • Subscribe to Chroma Investing

  • Categories

  • Archives