Advanced Micro Devices, Inc. (AMD): The Turnaround Portfolio for Young Investors (Part II)

If you build a high-risk portfolio like this, make sure that it is well diversified so that the risk of any one company killing your portfolio is minimized. Keep in mind that while some of these companies have already made a lot of progress in their efforts of recovery, some are just beginning. Buying companies that are in the middle of a restructuring is a dangerous game and it involves more risk than usual, which explains the potential of high rewards. This is why younger investors that have more time until their retirement should consider a portfolio like this.

Now, since we are building a young investors’ portfolio, we won’t be able to start with a lot of money. Let’s assume that we have about $20,000 to invest and each stock in our portfolio gets roughly $2,000. We are looking at buying 583 shares of Nokia at $3.43, 100 shares of Hewlett Packard at $22.10, 133 shares of BlackBerry at $14.99, 5 shares of Apple at $440, 115 shares of Sony at $17.26, 769 shares of Advanced Micro Devices, Inc. (NYSE:AMD) at $2.60, 48 shares of BP at $41.08, 289 shares of IAMGOLD Corporation at $6.92, 200 France Telecom shares at $10.90, 100 shares of Chesapeake Energy Corporation (NYSE:CHK) at $22.40. I will watch the performance of this portfolio and provide quarterly reports.

Note: This is just an experimental simulation I am running. I am not actually building this portfolio even though I own shares of some of the companies mentioned here.

The article The Turnaround Portfolio for Young Investors (Part II) originally appeared on Fool.com and is written by Jacob Steinberg.

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