When last we tuned in… I decided to buy back into the market now that the uncertainty had been reduced by the election. You may notice that it was not a judgment, good or bad, simply less uncertain. (Yet still far from comfortable.) My list had shrunk from 36 to 5: AMSC, FREYR, GMGMF, SHLS, SSYS. Really, the list was 6 because None_of_them was a valid choice. How did it turn out? Folks who follow me on social media (@tetrimbath) or who receive WordPress updates (or anyone who simply read this post’s title) already know. I bought shares of GMGMF. Why? Read on.

It is tempting and easy to say, “I bought GMGMF.” Error. I bought a sliver of the company, enough shares to make my investment substantial enough if the company grows enough, but not so many that I’d go “Ouch!” if they went away. I’d probably say “ouch”: lowercase, no exclamation point.

But what did I buy and why? As I’ve mentioned, “I like to maintain a list of small companies that are public and that have the potential to make significant, positive, and disruptive impacts on society.” That long list of 36 had various combinations of those criteria, so those five did, too. But here’s where a bit of the ‘personal’ aspect of ‘personal finance’ enters. 

A few days after creating that list, I had to remind myself about what FREYR, SHLS, and SSYS did. Personal finance can be boring and easy to ignore. I stay interested and engaged by investing in promising (and hopefully more than simply promising) companies whose impact is something I look forward to. I know about AMSC because I owned shares years ago. GMGMF was memorable because I am a fan of graphene, the next generation of batteries, and the fact that the company didn’t require involving China, which I feel has some uncertainties associated with it currently.

Typing that paragraph took a few minutes. Reaching that conclusion, then understanding my subconscious underpinning of the decision took hours. My process isn’t as rigorous as some, but it isn’t as frivolous as it can seem.

Graphene is a wonder material acting like most wonder tech, promising without producing until someone finds its greatest fit. Graphene’s inclusion is a sweetener, but not even an enabler. 

Batteries are inherent in mobile electrification. Electric vehicles have existed for decades, but energy storage was a key constraint. Lithium-ion batteries busted through that barrier, but now that the honeymoon is over and now that the consumers are more eloquent about what they want, new battery technologies can be better developed. 

China is like the US, large enough to contain enough territory to contain massive resources, yet some resources like lithium are not readily available. Batteries based on common materials like silicon, aluminum, etc., avoid scarcities, particularly scarcities produced by politics. 

And I realized GMGMF was going to produce a product that would be delivered to customers, not a regional service that was limited by geography.

But.

F. That F means GMGMF is not a US company. Not being a US company isn’t inherently bad, but in a protectionist environment, it could be a hindrance to growth. But, it is from part of the British Empire and it is somewhat odd how comforting that can be to many.

Well, no company is perfect. No investor is, either.

So, I bought some GMGMF.

I only bought a small position because another of GMGMF’s hesitancies is that the stock trades at less than $1. Some stocks in that range can be readily manipulated, or at least be sensitive to small influences. Look at the daily chart of MSFT and see lots of ups and downs throughout the day, which is because there is continual action in the stock. Every minute someone wants to buy and sell, and is able to do so. Look at GMGMF and see long gaps where there may be no trades. There is a lot of competition for MSFT, and much less (#massiveunderstatement) for GMGMF. Individual investors like me can have a difficult time finding an advantage amongst the MSFT crowd. Individual investors can find an advantage in stocks that are overlooked. Low demand can mean lower prices. Of course, there may also be fundamental reasons why the stock is overlooked. It might not be undervalued. Investing includes the possibility of both risk and reward.

I bought a few shares and watched to see if it moved the stock. It didn’t. Good. It was one way to learn if there was more interest than just me. 

Next comes a bit of pragmatism. I buy knowing that I’ll eventually sell. When I sell, I’ll have to claim it on taxes. I hate paperwork. Rather than buy a big batch now, sell off chunks later, then pro-rate the costs, profits, and losses, I buy in smaller batches and sell batch by batch. The paperwork is simpler. The paperwork may be years or decades away, but buying on subsequent days makes it easier to track in the long run. 

I bought shares every day this week and consider it done. Because the stock is less than $1, I bought up to an arbitrary limit and do not intend to buy more unless strongly convinced of a significantly good reason.

All that to add one stock to my increasingly diversified portfolio.

Now, what about AMSC?

That’s the story for why GMGMF and why not the others. AMSC has caused me to hesitate for a few reasons. I originally bought them because they were advancing superconducting technology; but that was years ago, and it seems like they’re surviving on whatever they have left over. They might be good leftovers, but what’s the company doing to advance the greater good? Counter to the argument for GMGMF’s sub $1 price, AMSC is priced high enough that I felt uncomfortable buying a nice round lot of the stock. That’s an emotional response with no math basis, yet I trust intuition, too. Intuition didn’t say ‘no’, but more like ‘not yet’. Stay tuned for that.

Is this description pedantic, too detailed? Could be. Yet, I chronicle it because some reader may be just beginning personal investing and might benefit from a real example. Notice that I just called this an example. What I do is what I do. There are millions of methods. This is mine for now. I hope it helps.

Now, back to working on my end-of-year portfolio review. My house sale and the election certainly have made this an interesting year, and it isn’t over yet. Stay tuned for that, too.