CDP Enterprises: The Start

Last month marked the two-year anniversary of my first trade on the stock market. Since purchasing 24 shares of Altria Group (MO) for $15 each on Dec. 26, 2008, my research methods, understanding how news affects the markets and patiences in waiting for a stock to make a move have grown by leaps and bounds. Back then I couldn't tell you the difference between a safe yield and a shaky one, or that beta was more than a type of fish or that a $10 stock could actually be more expensive than a $100 stock.

Looking back, I really didn't know what I was doing, and should not have been purchasing stock.

I was fortunate that most stocks I purchased in that period went up, and the ones that went down, moved only a few percentage points. During that winter of 08-09, I got into Ford (F) at $1.88 a share, just weeks before the automotive company made one of the greatest comebacks in Wall Street history. I purchased Jaguar Mining (JAG) just as gold started its historic climb. And Altria's price was bolstered by institutional investors looking for strong yielding stocks to anchor their portfolios in the middle of the Great Recession.

I got lucky. But most importantly, I learned from my mistakes, my successes and from other's advice.

This is the blog that will capture the next chapters of my investing life.

So how did it all start? For years, my brother, Paul, and my dad had watched "Mad Money with Jim Cramer" on CNBC and I'd occasionally be in the room when it was on. From spitting out stock names to yelling "sell, sell, sell" or "buy, buy, buy," I loved the entertainment value of Cramer but found the topic of stocks boring. Deep down inside, I probably also felt like the topic was something I could never understand. But over time, I realized that it was something I could pick up and maybe even make some cash.

As Christmas 2008 approached, my parents asked what I wanted for Christmas. I told them, "stock in Ford." Confusing "buy low" with buying a sinking ship, I figured stock in a company as old as Ford couldn't possibly hit zero. So while at home on vacation on Dec. 23, my parents and I went to the local Scottrade office in Dearborn, Mich. to deposit my Christmas gift. Luckily for me, it takes a day before deposited money is posted in an account. So instead of purchasing Ford on Christmas Eve (the market closed at noon that day), I spent Christmas using the limited knowledge I had to land on Altria, a company that makes Marlboros. Yes, my first company made cigarettes. (Don't judge me, my research was so bad then that I also thought they still made Kraft cheese, and who doesn't like cheese?).

The name "CDP Enterprises" plays off two names. First, my full name. Second, C=Chad, D=my dad, Donald, P=my brother, Paul.

2011 is off to a great start. Just last week, I got lucky on two stocks. Marathon Oil (MRO), announced it was spinning off one-third of its business. That stock was up almost 11 percent at one point on Thursday. And on Friday, Sanmina Sci Corp. (SANM) climbed an eye-popping 13.2 percent in one day - the greatest one-day gain in CDP history. Remembering that pigs gets slaughtered, I sold half my stake in SANM, a 30 percent gain since I purchased it in late December 2010.

So this is the beginning of the CDP Enterprises blog. In it, I promise to share the ups and downs, as well as the funny and frustrating moments of trading.

Current holdings: FNFG, MRO, SANM, BRD and DAL.