Black Stocks Performance - YTD 5/25/17
The portfolio is outperforming the S&P 500 year to date with a gain of 11.5%. The S&P 500 was up 7.4% for that period.
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Another way to #BankBlack is to buy stock in black-owned banks and companies. As with any investment in equities, there is risk associated with buying a stake of ownership in a company through the stock market. You should research any investment and consider your investment relative to your risk tolerance and long-term objectives. Your purchase of stock in a black-owned bank or company can help to improve their financial health and ability to grow. And in the long term, your investment can potentially grow, too.
Note that many black-owned companies are micro cap or small cap companies that are thinly-traded and may be listed on the OTC/Pink Sheets exchange and not on the NYSE or NASDAQ exchanges. As a result, they do not have the same reporting requirements and may carry a higher risk than larger companies traded on the major exchanges. Some OTC stocks may not be available for purchase with some discount or free brokers (such as the Robinhood app).
Over the course of two months I tracked the performance of a selection of black company stocks relative to the market. The initial portfolio had 100 shares of CZBS, 25 shares of IBWC, 50 shares of MFBP, and 200 shares of ROIA. The cost basis (initial investment) for all shares is $2,138.30. On May 10th, I sold the 50 shares of Mechanics and Farmers Bank, MFBP, because the stock is thinly-traded with limited movement, The position was closed with a $9.50 loss. Since the portfolio was heavy weighted with banking stocks, I reinvested the balance by purchasing 60 shares of AMS, a black-owned hospital equipment leasing company.
For the two-month period the black stocks gained $212.60, a 9.9% return on the initial investment. This outperformed the S&P 500. This will be the last post tracking the stocks weekly,and I will note that the performance over time has been variable as you will see on the weekly posts. These company stocks are thinly traded and can be volatile in price movement. The best performing stock was IBW Financial (Industrial Bank) with a 61% increase in value. The worst performer is UONE Urban One (formerly listed as ROIA Radio One) with a 22% decline in value.
For the week period ending May 25th, the portfolio saw an increase of 1.7% and underperformed the S&P 500's 2.1% increase for that period.
Charts by sigfig.com