Lunch Experiment Update:

I have finally paid off the loan to myself that I borrowed to buy the latest stock that I bought (CIM).  This last repayment time to myself went really fast.  In fact, it went so fast that I’m done borrowing money from my checking account to fund my stock purchases.  From now on, I”m only going to use the money that I save, and perhaps money from the dividend checks received from the fund itself.

And Now on to the Analysis of My “Lunch Experiment” Investments:

First let me say that I”m excited to say that EVEP has doubled for me (woo hoo)!  Unfortunately, it’s also the position I have the lowest initially investment in (boo).  Ironically, stock appreciation isn’t what I’m really shooting for…  not that I’m complaining!  But the real game in this experiment is reoccurring dividend payouts.

• Overall, the “Total Return” of my investments since investing in 2009 is up 19.31%.  Note, this number is not per year, but simply the percentage gain of what was originally invested vs the current value.  In case you are wondering, yes, I do follow the KISS principle.
• The “Cumulative Value” of my investments equal $6,548.90!  This is money that would have went to the restaurant owner and to the waiter in tips.  But now it’s sitting in my brokerage account earning me a dividend.
• With a dividend of $14.88 a week, I can easily afford to go out twice a week with the guys at work.  Especially if I buy cheaper meals such as soup.  Believe it or not, soup at a decent restaurant actually tastes great!

Experiment Observations To Date:

This experiment will span 2 years.  I’ve done much better than I anticipated!  While my dividend stream is extremely high risk, the money involved is practically free money since I would have been spent on dinning out at lunch anyway!  It’s also not diversified very well either!  But this is an experiment, and the normal nature of such experiments come with certain levels of risk.

So with this particular experiment, I’m shifting gears into overdrive for a smoother ride until the end of the two years (2 years is the length that I initially defined as the duration of this experiment).

If you have read this experiment from the start, thanks for hanging with me, it’s been a great ride to date!

Do you have any questions about my experiment and more importantly, do you see the value in doing something similar?

-MR

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