A member’s comments on the Novavax adventure

J.B.P., Ph.D., one of our members, recently made some excellent points about our intrepid, adventuresome member’s Novavax NVAX adventure. We show his comments below.

“First of all, I think your blog is paying way too much attention to her Novavax ups and downs. Your book Monday Morning Millionaire¬†stresses the correct principles of investing and says that no more than 10% of a person’s portfolio should be used in such adventures.

“Since her Novavax investment was $500,000, her portfolio must be worth $5,000,000.¬† So, since August, when she bought the Novavax shares, I hope she let the grass grow & the paint dry on the other $4,500,000 she had invested. If she followed your advice, she would have invested $2,250,000 in an S&P 500 Index exchange-traded fund and the other $2,250,000 in cash or near-cash.

“The interest rate on the cash from August to December 2020 might have been about 1% /year, so she would get about $9,000 from that. The S&P index was at 3,294/share on Aug 1st and increased to 3,732/share as of Dec 31st, 2020, an increase of 13.3%.

“She would have earned about $299,250 on the $2,250,000 invested in that portion

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me