We sold our Toyota Motor Corporation stock (symbol: TM) for a small gain in mid December because we wanted to increase our savings once we got word my wife was to be laid off January 1st. Well this money didn’t stay in our savings account long because we purchased 106 shares Bank of America Corporation stock (symbol: BAC) today of for $14/share.
We’ve been wanting to take advantage of the depressed stock market as much as we’re able to and the financial sector is about as depressed as it gets. We chose to purchase Bank of America stock because we felt it offered the best combination of risk and reward.
Bank of America purchased Merrill Lynch this month, making them the largest financial services company in the world. It seems like they have positioned themselves nicely during this bad economy to come back strong when it rebounds.
For the 4 years prior to 2008, Bank of America stock has been over $40/share, and at times, over $50/share. Taking a look at Bank of America stock price over the last 52-weeks, their high was $45.08/share and their low was $10.01/share. That being said, we believe there is very good upside potential. . .time will tell.
What’s interesting is that we do not bank with Bank of America because they got a little fee crazy and I had to close my account a couple of years ago. The flip side is that all of those fees make for a profitable business. Let’s hope we can share in that profit.
LOL! You are right about fee crazy BofA. And I hope that it does work in your favor. 🙂
Sounds like a good move.
And although, the new job didn’t work out for your wife… I am glad to hear that there are other great avenues taking it’s place.
Good luck with that. I just sold my BAC shares. First, they cut their dividend for the first time ever. Second, they are headed for serious trouble with credit card defaults. I’m afraid you are in for a long wait. (And I bank at BAC.)
Money Funk- Thank you for the support. We feel pretty good about the purchase, hopefully it will prove to be a good move for us long term.
Mr. ToughMoneyLove- Darn it! My timing has never been very good. We’re new to stock trading, so we try to only risk what we think we can afford to lose. That being said, I think BofA will continue to be a major player for years to come. If it turns out to be a long wait for a return on our investment, we’re okay with that. Since you bank with them, can you do me a favor and run up some fee with them in the next few months? Every little bit helps. . .
-1MansMoney
i think it’s worth a shot though, esp. at that price. i’m a big fan of trying things out instead of just watching and wondering, “what if”.
as you said, you’re new at it (as am i really) so you’ll learn and get your feet wet no matter which way it turns out. but i have a feeling it’ll be a positive experience 🙂
J. Money – That’s exactly how I feel. Even if it takes awhile to get a return on our investment, it will be fun to watch the movement of the stock and learn something in the process.
-1MansMoney