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 per year. I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, professional pet sitting, hubby's reffing, and our rental home. 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, PLUS a free custom header banner from me!). I even have all of my favorite tools on a resource page - I hope they help you too. Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!