Best Vanguard Funds

Best Vanguard Funds To Invest In

Which Index (and Other) Funds Should I Invest In?

Index mutual funds are a sound long-term investment

If you’ve read any of my material you know I’m a huge proponent of index mutual funds.  The specific reasons on why I believe investing in index mutual funds is a sound investment strategy is a topic for other articles.  This article is less about the “why” of index mutual fund investing and is more about the “what,” or what specific index mutual funds should you consider investing in.

Vanguard is the flagship index mutual fund company

Below I recommend several Vanguard index (and other) mutual funds for you to consider.  But why Vanguard?  The Vanguard Group, better known as “Vanguard,” is a U.S.-based investment management company.  Like other investment firms it sells many financial products and services, but what I’m going to focus on here is some of their index mutual fund offerings.  But again, why Vanguard?  Aren’t there other investment companies that offer index mutual funds as well?  The answer is yes, but Vanguard is a solid option because of the following:

  • Founded in 1975, it is a stable, well-run firm.
  • It has a wide offering of index mutual funds to choose from.
  • The fees to invest in Vanguard index funds are very, VERY low – some of the very best in the industry.
  • You can conveniently manage your investments using Vanguard’s well-organized website (https://www.vanguard.com).

Specific Index Mutual Funds to Consider

Whether you have $10,000 or $10,000,000, following are specific mutual funds for you to consider investing in. Now lets look at some of the best Vanguard funds out there.

Vanguard Prime Money Market Account (VMMXX)

The Vanguard Prime Money Market Account is invested in conservative, short-term, high-quality securities.  It’s an excellent place to save money that you want to be safe and yet still earn a competitive interest rate.[1]  Unlike a CD, a money market account is liquid; you can write checks against it and you can also connect it to your bank account to wire money to and from it.

Click Prime Money Market Account for an overview.

Vanguard 500 Index Fund (VFINX)

The Vanguard 500 Index Fund is the granddaddy of them all, the very first index fund for individual investors.  This fund is invested in companies comprising the S&P 500, one of the most followed stock market indices in the world.  Investing in this fund gives you broad exposure to 500 large, U.S.-based multinationals that are selected to be representative of the U.S. economy as a whole.  Consider this fund a workhorse, a common holding of most anyone who invests in index mutual funds.

Click Vanguard 500 Index Fund for an overview.

Vanguard Small Cap Growth Index Fund (VISGX)

The Vanguard Small Cap Growth Index Fund is designed to track the S&P Small-Cap 600 Index.  So while the 500 Index Fund invests in larger, more established companies, this index fund gives you investment exposure to that next strata of companies – those that are smaller, leaner, and up and coming.  This fund can also provide good balance to the 500 Index Fund because smaller companies tend to perform differently than larger companies during various economic cycles, and being diversified in such a way can make your overall investment portfolio more durable.

Click Vanguard Small Cap Growth Index Fund for an overview.

Vanguard Total International Stock Index Fund (VGTSX)

The global economy doesn’t just revolve around the U.S., and Total International Stock Index Fund gives you the opportunity diversify geographically by enabling you to invest in large, non-U.S. companies based around the world.  For example, this fund has holdings in Nestle SA, Toyota Corp., Vodafone Group plc, and literally thousands of other non-U.S. companies.

Click Vanguard Total International Stock Index Fund for an overview.

Vanguard REIT Index Fund (VGISX)The Best Vanguard Funds REITs

A “REIT” is a real estate investment trust, a corporation that qualifies for favorable tax status as long as it follows certain rules, one of which is that its assets must be concentrated in real estate.  Thus REITs hold properties such as apartments, shopping malls, hotels, office parks, etc.  Thus the REIT Index Fund gives individual investors a cost-effective way to invest in a widely diversified portfolio of professionally managed commercial real estate.

Click Vanguard REIT Index Fund for an overview.

Vanguard Energy Fund (VGENX)

Energy is a vital element of the global economy.  The Vanguard Energy Fund invests the bulk of its assets in companies engaged in the production and transmission of core energies such as oil, natural gas and coal.  It also has some investments in companies engaged in energy research and conservation.  An investment in energy can add a nice element of diversification to your portfolio because energy-related investments have the potential to go up even as the broader economy struggles.  However, while energy investments can do well, they can also be quite volatile, so they’re not for the faint of heart.  Finally, it’s also important to note that the Energy Fund is NOT actually an index fund, but since it can provide a good element of investment diversification and because its management expenses are very low I included it on the list.

Click Vanguard Energy Fund for an overview.

Vanguard Precious Metals and Mining Fund (VGPMX)

While I am not personally a fan of precious metals, for the sake of completeness I did want to point out this relatively safe and inexpensive way to invest in them (but see my definition of “safe” in the footnote below).[2]  Note that this fund does not invest directly in precious metals themselves, but in companies involved in the exploration and extraction of them.  Vanguard bills this as an investment that would be “complementary to an already diversified portfolio with a long-term time horizon.”

Click Vanguard Precious Metals and Mining Fund for an overview.

Short-Term Bond Index Fund (VBISX)

The Short-Term Bond Index Fund holds a diversified mix of investment-grade debt with maturities from 1-5 years.  This fund is passively managed to follow a common bond index by using a passively managed sampling approach.  The Short-Term Bond Index Fund is an outstanding alternative to traditional 3 month to 5 year bank CDs because it can easily be sold without penalty and because it’s invested in hundreds of underlying debt securities as opposed to just 1 CD at 1 interest rate at 1 bank!

Click Short-Term Bond Index Fund for an overview.

Total Bond Market Index Fund (VBMFX)

The Total Bond Market Index Fund is, in my view, not quite what the name implies.  Rather than include a sample of ALL bonds, this fund’s holdings are concentrated in debt securities that range between 5-10 years.   As with the Short-Term Bond Index Fund, this fund employs a passively managed sampling approach, and it’s invested in a wide rage of government, corporate, and international dollar-denominated assets in an effort to track a commonly followed bond index (related to, but different than the bond index the Short-Term Bond Index Fund is designed to track).

Click Total Bond Market Index Fund for an overview.

Other Vanguard Mutual Funds

If you don’t find the list above to be comprehensive enough or if you simply want to see the full range of the best Vanguard funds, then check out: https://personal.vanguard.com/us/funds/vanguard/all?sort=name&sortorder=asc

 

Finding The Best Vanguard Funds

Which of the above index mutual funds should I invest in?

My purpose in providing the list above is not to tell exactly which index mutual funds to invest in and what percentage you should hold of each, because I do not believe there is some “magic formula” that works for ALL people in ALL situations.  Instead, my goal is to provide you with solid investment choices that you can use as a baseline as you determine what your own investment strategy should be.  Said another way, if all that you ever do is invest in a balanced mix of the above mutual funds according to an allocation you feel comfortable with (meaning X% in this fund, Y% in that fund, etc.) in the context of your particular goals, circumstances, preferences, risk tolerance, and personality then you’re doing what’s right for you.   It really doesn’t have to be any more complicated than that.  So make your investment choices, let your money start working for you, and then get on with the rest of your life!

What if my company’s retirement plan doesn’t offer Vanguard mutual funds?

Vanguard funds may not even be offered as choices in your company’s retirement plan (e.g., your 401k plan), and even if some are then it’s probably not going to be all of the ones you would be interested in.  So then what do you do?  Fortunately the management expenses in mutual funds offered by retirement plans usually much lower than the rates you could get on your own, so just pick investments that come as close as possible to what you’re looking for.  For example, you may really like the idea of putting some of your money in the Vanguard Small Cap Growth Index Fund, but if it’s not an investment choice then it’s likely your retirement plan offers another fund that would enable you to invest in smaller companies.

Should you invest in anything else BUT Vanguard’s index mutual funds?

Thinking beyond your company’s retirement plan, of course there are other investment options aside from Vanguard’s index mutual funds.  You could choose to invest from among hundreds of actively managed mutual funds, ETFs, raw land, rental real estate, individual stocks, gold, covered calls, etc.  So the question isn’t CAN you invest in things other than Vanguard’s index mutual funds, but SHOULD you do so?  The short answer is that if you’ve got an opportunity to invest in something that you know is comfortably below market value (meaning you’re almost sure you’ll make a profit) then it’s worth considering.  Examples might include discounted company stock or stock options, land purchased at a discount from a friend or relative, or something along those lines.[3]  However, if you’ve got no such obvious “can’t miss” investment opportunities then, again, if all you did was build a portfolio with a sensible mix of Vanguard’s index mutual funds then that alone would be a good, solid, long-term investment strategy.[4]



[1] Note that while this money market account is not FDIC insured, it is still considered to be quite safe.

[2] Note that “safe” in this context does not mean this investment is without risk.  What I do mean is that owning a publicly traded and marketable security is vastly more secure than having some gold coins stuffed under your mattress (or even in your safe deposit box!).

[3] Note that I am NOT talking here about gimmicky, “click here or call this number and I’ll tell you the secrets of getting rich using my ‘secret’ method” schemes.  No, I am talking about straightforward, real investment opportunities that you can understand up front before committing any money.

[4] This article does NOT constitute investment advice.  See the site’s legal disclaimer here.

First Time Home Buyer Guide

First Time Home Buyer Guide

5 Things to do Before Moving into Your First Family Home

When a couple moves into their first family home, they want to make sure everything goes as smoothly as possible. As such, here are five things every potential homeowner should do before moving into their first family home.  This first time home buyer guide should not only be used for your first home, but any additional homes you may purchase down the road.

1. Secure A Great Mortgage

Every applicant has a certain style of mortgage that is right for them. For instance, veterans can take advantage of A VA hybrid loan, or can research a VA hybrid review to see if this type of loan is right for them. Many first time home buyers take advantage of mortgages that cater to their budgets and needs. Still others look for a larger mortgage that can be paid off in less than 30 years. Every person has a different type of mortgage that works best for their needs, and they should know the varieties available before they settle on one.

2. Have The Home Inspected And Evaluated

A professional inspection and evaluation may cost potential homeowners a little bit of money, but it’s worth every penny for the peace of mind in the end. An inspection can detect areas of concern that can affect the value of a home, including rotting wood, unauthorized additions, and even a sinking foundation. An evaluation of the home lets potential homeowners know what their new home is actually worth so they can better bargain price at closing.

3. Know The Neighborhood

Along with knowing the safety and value of a home, a couple wishing to buy their first family home should learn about the neighborhood as well. Knowing crime rates, actual neighbors, proximity to schools and parks, and other things that can affect children is something every person should know about any home they are interested in.

4. Choose A Home A Family Can Continue Growing In

Many couples choose a home with only a few bedrooms, only anticipating the immediate future. If homeowners choose a home they can see themselves living in for 15 years or more, they are more likely to go with a home they can have several children in for the entirety of their childhoods.

5. Stay Within Budget

As a general rule, new homeowners should stay within their income level when buying a home. If a home exceeds more than twice a family’s annual income, they should seriously consider the affordability of their new home. In choosing a real budget right away, new family homeowners can keep themselves from drowning in debt from a house they cannot really afford.

 

Stock Valuation – How To Value A Company

Stock Valuation – The Relationship Between A Company’s Stock Price and Cash

In another article titled Companies To Invest In, I made the point that, at its core, a well-run company is simply a money making machine.  That concept – that the value of a company is ultimately tied to cash – is one of the keys to understanding how to value a company and it’s relationship stock price.  Stock valuation are great to get quick snapshot of a company’s value.  I’ll illustrate this point with a simple example, and then build on it in ensuing articles.

How To Value A Company – Cash Per Share Example 1

If there were a company that had $1,000 in cash with 100 shares of stock outstanding then you could calculate the value of each share of stock as follows.

Stock Valuation Cash Per Share Example

How To Value A Company – Acquiring 20% Ownership Example 2

If that were the case and you wanted to own 20% of the company then how much stock would you have to buy, and how much would it cost?  The answer is that you would have to pay a total of $200 for 20 shares of stock, which can be calculated as follows.

Stock Valuation Ownership Example

How To Value A Company – 10:1 Stock Split Example 3

What if the company did a 10 for 1 stock split, meaning instead of having 100 shares outstanding, it had 1,000 shares outstanding?  Would that change the value of the company?  The answer is no.  The company’s only asset is $1,000 of cash, and no amount of stock splitting (or combining) can change that.  However, by doing a 10 for 1 stock split the value of each individual share is diluted, going from $10 to $1 per share.  So in summary, a stock split affects the value of each share of stock, not the value of the company itself, which can be illustrated as follows.

 

Stock Valuation Stock Split Example

 

Now, what if our little company went public and was traded on the New York Stock Exchange?  Wow, that’s big time!  Wouldn’t that would boost its stock price above the $1 it’s now trading at after the stock split?  Not at all!  The stock could be traded on the moon, and that still wouldn’t alter the fact that the total assets of the company are worth $1,000, making the value of each of those 1,000 shares equal to $1.

401k Calculator

401k Calculator That Allows You See The Impact of Changes

How To Value A Company Using The Terminal Valuation Method

But wait, isn’t just focusing on a company’s cash overly simplistic?  After all, there’s no company of any size or consequence whose only asset is cash.  While that may be true, at the end of the day, determining how to value a company is ultimately measured in money (or cash) – nothing else.  This is known as the terminal value of a company.

The application of this concept is known as the Terminal Valuation Method.  To illustrate how it works, say a company’s stock price is trading at a value that suggests the total worth of the company is $10,000,000.[1]  How can you tell if this stock valuation is reasonable?  One way to go about it is by to pretending that the company sold everything off: its inventory, furniture and fixtures, real property, and so on, until it converted all of its assets to cash.  After going through exercise you estimate that upon liquidating all of its assets and settling all of its outstanding debts (or “liabilities”) that the company would end up with $4,000,000.

“It’s Important To Note Stock Valuation Can Vary Greatly Depending On A Number Of Factors Such As: Industry, Maturity Level of Company, Ect.”

What…$4,000,000?  Didn’t we say that the value of the company’s stock suggested that it was worth $10,000,000?  Does this mean that the company’s stock price is vastly over inflated relative to its true worth? Perhaps, but not necessarily.  For example, aside from tangible assets (assets that you can touch) that could be converted into cash, an established company might have valuable intangible assets that would substantially contribute to its ability to make money: established business relationships, a highly skilled workforce, an efficient supply chain, secret formulas and patents, widely recognized brands and trademarks, etc.  In short, there can be a lot more to the value of a company than just its “hard assets” such as cash, inventory, property, etc.

However (and this is a BIG however), if a company is being valued at $10,000,000 and yet it would only be worth $4,000,000 upon liquidation, there still has to be a financial explanation for where that remaining $6,000,000 of value is coming from.  In other words, what is it about the company that makes it worth more than sum of its tangible assets?  If there is a compelling story there – a story that explains how the company’s business prospects, activities and operations are worth an extra $6,000,000 – then the stock valuation of the company can be justified.  If not then the company’s stock price is being pumped up by hype and hot air.

Summary

While it’s true that you cannot you cannot fully measure the value of a company based on its hard assets (cash, inventory, buildings, etc.), it’s also true that a company’s value is ultimately measured in dollars.  That means when it comes to a company’s stock valuation, cash is king!

 


[1] This would be the case if, for example, a company’s stock was trading at $50 a share and there were 200,000 total shares outstanding ($50 x 200,000 shares = $10,000,000).

Financial Resources For Improving Your Financial Situation

Managing your funds well throughout these times is of utmost relevance. Individuals are having a hard time making ends consult the raising cost of products as well as the rising interest prices on home mortgage as well as vehicle findings- the honest truth that a number of companies, and economic titans at that, are either folding or minimizing workers.  You can improve your financial situation greatly by using the right financial resources.

Much uncertainty waits for the air in today’s financial scene triggering the need for useful finance assistance not simply for huge financiers yet right to typical individual trying to endure the day-to-day grind. It would certainly seem like employing an individual economist to help you make likelihoods and ends of your present situation would certainly be pricey as well as can perhaps lower your readily available financial sources likewise even more down.

Financial Resources Suitable for Road to Your Economic Success:

Stock Profit Calculator

Stock Profit Calculator That Allows You To See Different Scenarios

First is investments.  There is no warranty that you’ll generate cash from investments you make. Yet if you obtain the basic realities about saving as well as investing and also adhere to using with an intelligent plan, you should certainly manage to obtain economic security as well as safety and security for several years and also indulge in the benefits of handling your money.

No individual is birthed recognizing exactly how you could conserve or to invest. Every effective investor starts with the essentials. A few individuals might stumble into economic protection – a wealthy loved one might die, or a business may eliminate. For great deals of people nonetheless, the only technique to obtain financial protection is to conserve as well as invest over a lengthy amount of time.

Discover if there is any money that could be spent. If so, then consult with financial resources such as an investment broker to check out if precisely what you need to invest is worth the trip. If it is large as well as it is put appropriately, then perhaps there will certainly suffice to use towards your retirement.

When you obtain your entire ducks right, make sure your tax obligation lawyer or accountant realizes your complete monetary development. They can assist you much better plan for the future by recognizing where you go to the present moment. They can additionally supply you some terrific recommendations relating to the very best ways to proceed in your investments.

Time and again, individuals of also moderate means which begin the quest reach financial security and also all that it assures: buying a home, academic chances for their children, as well as a comfy retired life. If they could do it, so might you.

Savings & Budgeting

Second of all is making to get just your basic needs as well as save as much of your incomes as you can. Include your cost savings in your regular monthly budget strategy. It is likewise a good idea to examine your investing methods and also you will be able to check out where you need to make decreasing or you could possibly source for an additional income. If you use bank card, it is very important to manage your investing. They are hassle-free yet at the same time they can land you into a stack of monetary difficulty.

It is vital that you entirely realized just exactly how it works to make sure that you could utilize it appropriately. If you acknowledge that you could not have the discipline as well as you put on not would such as to carry cash around, you can go with a debit card. It functions merely like cash and has a limit relating to simply just how much you can invest.

How to Invest in Stocks

Learning How to Invest in Stocks 101

Regardless of how many Wall Street films you have seen in the past, stocks and shares is not an easy topic. Those who are searching online for resources on how to invest in stocks for beginners or with little money thinking that they will “certainly” become the next overnight millionaires should, first and foremost, receive a word of warning: Yes, some people can really get rich overnight playing with shares at the stock exchange market; however, but that happens once a blue moon. Every person willing to dip a toe in the world of stocks investment should, at the very least, get prepared first and —as if you were playing chess— think his moves twice beforehand to prevent regrets after.

That being said… How to invest in stocks?

First Things First: Get Informed

Stock Profit Calculator

Stock Profit Calculator That Allows You To See Different Scenarios

Before spending one penny in a stock market, the first thing you should do is to get informed. Let’s ask a few questions so you can ask yourself if you know the answers:

  • Do you know what a stock is, and how they are currently stored?
  • How many kinds of shares are there, and which of them you can buy?
  • Do you know what a stock broker is? Have you found any for yourself already?
  • Lastly, have you spoken with your accountant about the financial and tax consequences (if any) of becoming a stock investor?

If you do not know the answer to any of these questions, then please let me suggest you the following readings:

  • Investing articles on stocks and the stock market could be a reasonable starting point.
  • The Beginners’ Guide to Investing, by the American Securities and Exchange Commission can provide you a more specific introduction to the topic.
  • Investor’s glossary page can help you clear your doubts.
  • Lists of stock brokers such as this one by Nasdaq can help you find a reputable stock trader for your assets.

Learning How to Invest in Stocks

Next, choose how you will invest in stocks

Once you have covered the basics and feel better informed to start investing, you need to find out a way to do it suitable for yourself and for your money.  There are many options and approaches for this, yet, for beginners, I like to keep things simple. Remember the goal is to make money, and that you have basically two ways to get it with stocks:

  • You either buy stocks to resell them after a short time.
  • You buy stocks to expect a profit sharing payment or resell them after a longer term.

In both cases, your goal will be to make more money from what you invested, a profit.

What are the best stocks to invest in?

The best stocks are on companies or markets you understand, so this answer will depend strongly in your background. Let’s try to make it clear with an example, anyway:

Let’s say someone offers us stocks from an ice-cream company… would you buy them? An uninformed person may go buy them just because “heard” those shares are “about to go up”, and that “it is the exact moment to buy them.” Someone who understands the ice-cream market, however, would pause for a moment and think: Ice-creams are mainly sold in summer. During the winter, their demand falls down. The wisest move would be to buy the stocks in winter, when demand is low and prices go down; and to sell them in spring or at the beginning of summer, when demand goes up and so do prices.

After learning how to invest in stocks, remember knowing the market you are about to invest in will help you get a better understanding of when to buy or sell your stocks.

Certainly, your stock broker should advise you about your investments too.

Fidelity Active Trader Pro

Fidelity Active Trader Pro

Understanding how to use the Fidelity Active Trader Pro will make your life so much easier.  On top of that, you’ll be able to quickly find what you’re looking for.  In this I’ll show you how to use Fidelity’s Active Trader Pro Platform in addition to showing you some of the features.

1. Requirements To Use Active Trader Pro:

Fidelity does require you have an open account with a total balance of $25,000 or greater OR place 36 or more trades in a rolling 12-month period.  If you meet these requirements you the platform should automatically be available.   However, if you call customer service and talk to a rep they are able to add this requirement for you.  You will have two different options.  There’s an online version (support by your browser) or you can download a copy as an application.  Personally, I’ve had poor experiences with the web based version from running very slow to having to restart the application due to stock data not being updated.

Links To Download Fidelity’s Trading Platform: 1. Active Trader Pro for PC  2. Active Trader Pro For Mac

2. Getting Started:

After you’ve completed the install, it’s time to login.  You should see an icon with the Fidelity logo called “Fidelity Active Trader Pro®”.  If you don’t see it try clicking the windows start button and type “Fidelity” in the search window.  It should pop-up (at this time I’d recommend right clicking on it and creating a shortcut for your desktop).  The first time opening the app may take a minute or two, so be patient.  You’ll be promoted to enter your username and password.  Once you login you should see something similar to the screenshot below. Now, you might be feeling a little overwhelmed, don’t worry you’re not the only one.

Fidelity Active Trader Pro Main Screen

Fidelity Active Trader Pro: Main Screen

3. Fidelity Active Trader Pro Menu:

Start Forex Trading Without An Investment

Start Forex Trading Without Investment & Day Trading Forex

Forex is an acronym of Foreign Exchange, and Forex Trading is the global business of trading of currencies from various countries against each other. The foreign exchange market also known as FX, currency market or Forex. All of the larger international banks are major participants in Forex trading.  So, is it really possible to start Forex trading without investment?  What about Day Trading Forex?  The answer to both of these is yes you can!

Typically Forex trading is performed by the brokers, in this business you have right to choose the currency pair that you expect to change in the value and trade accordingly. As a Forex trader, you have to place an order through broker then the broker passes the order to their partner in the Interbank Market and fills your place. In case, you close the trade the broker closes your position with the loss or profit during the trade.

Start Forex Trading Business? Why Should I?

No matter what is your actual business you can do it from home as part-time, if you know how to do business and survive in the market, start by day trading Forex. It requires practice and knowledge of different markets you want to work with.

Day Trading Forex is Easy With a 24-Hour Market

As a Forex trader, you can choose your own hours to work from the morning in Australia till the night in the United States. The Forex market never sleeps, so you can join Forex trading as a part-time business, but you must have some amount to invest. You can find your peak hours to do Forex trade according to your regional time.  Find out how to combat inflation!

Low transaction costs

The physical Forex markets require large amounts to invest to survive in the market, on the other hand, online Forex trading doesn’t require anything like this. You can make transaction cost under 0.1% under standard market circumstances, and the larger markets can bid as low as 0.07%, so it depends on your investment in this market.

No commissions

As a Forex trader, you don’t need to bear expenses like brokerage fees, exchange fees or government

Stock Profit Calculator

Stock Profit Calculator That Allows You To See Different Scenarios

fees. Most of the retail brokers compensate for their services, so they don’t require you the commission.

Just like other businesses, day trading Forex also has scammers who are just like a black sheep in this field.

Before you start Forex trading, you need to avoid them, following tips helps you to avoid from Forex scam or fraud.

Google the product and research for it: If you see a new product that offers high-profit, search about it in Google, for example: write “product name scam” if the results yield with too many results don’t go with it.

If it looks too good: Websites that offers high-profit, keep in mind there’s no easy money in this market.

Scamming websites usually have one page with big/blinking $ sign and serious explanations.

Demo account: As a beginner you need to care for the demo accounts. You must ask from the people who have experienced the field to start a demo account.

Check the people on LinkedIn: LinkedIn is the world’s largest professional network with a wide audience. People who looks new to the Forex and from whom you might have scam risk then they can be searched out on LinkedIn. By checking their linked profiles you will know that whether they are trusted or not.

The Potential Value In Fitbit Inc

My Current Position In Fitbit Inc.

I’ve been watching Fitbit Inc (symbol: FIT) over the last couple of years.  During that time I’ve bought and sold shares of Fitbit here and there.  During August of 2017 I began getting more serious and started purchasing shares fairly regularly.  As of January 30th, 2018 I currently own 7,630 shares of Fitbit.  With 1,930 in retirement accounts and the remaining 5,700 in my personal brokerage account.  I have just $40k invested in Fitbit. with their current share price of $5.22.  I’m currently averaging a cost basis per a share of $6.11 (I’m down just around $6,800).  I plan to add an additional $5k over the next month to put my total original investment just above $50k.

Stock Profit Calculator

Stock Profit Calculator That Allows You To See Different Scenarios

Current Financial Situation of Fitbit, Inc.

There were a few things to call about about the latest earnings report for the fiscal Q3 ending on September 30th, 2017.

Highlights From Fitbit’s Q3 FY17 Financial Report

  • $659 million in cash, with current assets totaling $1.23 billion
  • $564 million in current liabilities
  • $392 million in revenue, with $174 million and -$27 million in gross profit and operating income respectively
  • -$113 million in net income
  • Operating cash flow was $5.5 million, net change in cash for Q3 FY17 was -$38 million.

There’s a few important things to call out from Fitbit’s Q3 FY17 Financial Report

  1. Has a very strong cash position, with operating cash flow remaining positive.
  2. R&D spend remained at $84 million contributing to the lower net income

The Long Term Strategy Of Fitbit

If Fitbit is able to enter into the healthcare side of things.  I believe there is a lot of potential for this company.  During FY18 I’ll be looking for YoY sales increases and their plan for expanding their services.  I still believe that Fitbit is undervalue at it’s current price.  With the market cap just under $1.3 billion, this company has a lot of room to go, if they can prove to the market their value.