The following is a guest post is from my younger sister, Ambi (short for ambitious). She’s a recent college graduate, started her first post-college career here in Houston, and has been living with us since January. Please give her a warm welcome!
Maybe I am an adrenaline junkie, but here’s my latest radical decision.
Currently, I am very actively looking to invest in Groupon stock. After hearing its disappointing last quarter’s numbers and reading former CEO Andrew Mason’s blunt exit email, I want in. No, I don’t have an emergency fund that is 6 months worth of my earnings. No, I have no experience with stocks. No, I have not even held my job for 3 months.
I understand how choosing to invest in a tanking company that just fired its CEO, based on an unproven coupon business model, may seem unwise. Here are my three justifications:
1) I see a great opportunity.
Groupon stock held a high of almost $20.00 a share at one point in time, and while I do not even pretend that Groupon stock will ever be worth that much again, I do see it rising above its $5.30 a stock current price.
2) I feel secure in my current financial state.
I don’t have debt. Additionally, I have no dependents I am supporting, nor do I have any other fiscal responsibilities other than my personal living costs (rent, groceries, transportation, and savings). While I do have a sales job, my base salary is not effected by my additional commissions, and I live comfortably off my biweekly checks. I even save. And when the time comes I do start earning commissions, I intend to save each part of those checks, building a nest egg.
3) I will personally enjoy the highs and lows of my stock.
I think people want to avoid making investments effect their emotions, but this is where I gamble. I do not go to casinos – I do not like losing my money on games that are rigged for the casino to win more often than not. But as I watch the stocks plummet on Bloomberg, I want to be a part of the Groupon ride. With a new CEO, I have no idea what will happen, but that is why I am investing a very small amount that I do not care if I never see again. Everyone I know uses Groupon, so if it does tank, honestly…I will more effected by the loss of actual deals than the amount I invested. And should Goupon do well, I would love for its stock to be my first portfolio stock.
So, I am currently looking at purchasing 60 or so shares. If I never see that money again, I won’t cry. And should Groupon turn around, I will be thrilled.
What do you think? Is this stock just too risky for your financial taste?
FYI: I worked at a dead end cubicle job from 2005-2011 for about $30,000 a year. I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, a rental home, and professional pet sitting. If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you). I even have all of my favorite tools on a resource page - I hope they help you too. This all gives me the time to be with my aging family members, the flexibility to stay close with my friends and family, and it should help if we finally get pregnant too! Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!