During the war, Treppenwitz posted a handy To-Do list of ways we can help Israel. Even though I am not Jewish and not exactly Israeli, I think that it’s important to “give where you live” or at least give where your heart is. I was especially interested in the idea of buying Israel bonds. My grandmother bought us US savings bonds when I was little but I had never heard of Israel bonds. I guess every country needs a way of financing its work.
Then a few days ago after putting up ads on my site, I saw one that said, “Invest in Israel.” That ad, along with what I had read about Warren Buffett’s big buy and ongoing investments of companies like Intel and Google in Israel, got my brain clicking. I wondered if it really does pay to invest in Israel.
First, I thought about investing my own money in the stock market by buying Israeli companines to see what came of it. Since I am po, I gave myself a budget of about $40. Even with just a $4 commission fee on ShareBuilder, my $40 investment really wouldn’t demonstrate much. Then I remembered a game that we played in my high school economics class where we pretended to invest money in the stock market and followed our investment in the newspaper! The newspaper! Yes, folks, I went to high school before Al Gore created the internet. I felt that surely there was a free online version of a stock investment game. I was right. There are lots of online investment games. I picked the Stock Simulator at Investopedia. Now what to buy?
I read lots of articles about investing in Israel, but this one by James Altucher called Israel: Who Knew? was particularly helpful. It describes to investors the many reasons why investing in Israel makes sense. So, on the simulator I’ve created a game giving myself just $1000. I made the commissions $4 - that’s what you’d pay per stock buy on ShareBuilder. Today I put in “orders” to trade roughly equal shares in the eight stocks mentioned in the article. I bought Aladdin Systems, Check Point Software Technologies, Fundtech, Given Imaging, Magal Systems, Radware, Teva Pharmaceutical, and Elbit Systems. These orders to buy will go through on Monday morning US time (I’m so excited!) and then the game will really begin.
But it doesn’t end there! I also wanted to invest in Israeli companies that are not traded on the US markets. So, I set up another game where I bought $1000 worth of shares with a $4 commission in the First Israel Fund. According to their blurb, the First Israel Fund will invest “substantially all of its assets in equity of Israeli companies with at least 80% of the fund’s net assets invested in Israeli securities at all times.” This fund buys shares of Harel Insurance, Teva (again!), Bank Hapoalim, and Israel Chemicals among others. The only thing that I am not happy with about this fund is that their management fees are 1.76%. Again this buy order will be processed “virtually” on Monday and the ball will be rolling.
Stay tuned and I’ll let you know how it goes. I hope that I don’t loose my virtual shirt. If I win big though, I’ll have a virtual party and you’ll all be virtually invited.
A disclaimer: I have no idea what I am doing. I am not an investment expert and you should not take anything written on this blog as investment advice. That’s why I am using virtual money. I personally think investing in Israel is a great idea. Hell, I moved here! So feel free to poke around and make your mind up for yourself. If this works out, I’ll think about putting my money where my mouse is.
נב: I made the lovely graphic at the top of the post. Don’t make fun of it or I’ll virtually beat you up.
Up for more?! Check out this video about super-duper companies that have already made investments in Israel.
17 responses so far ↓
savtadotty // Oct 21, 2006 at 4:24 pm
putting my money where my mouse is
That is great. I’ll be watching, with my own $40. at the ready.
G. // Oct 21, 2006 at 7:19 pm
Very informative post,John. Thanks!
harry // Oct 21, 2006 at 7:46 pm
In 2002, a few friends of mine got together and started an investment club. We’d meet once a month and invest 1000 shekels (total) in an Israeli stock. We did it for about a year with a total investment of 11,000 NIS. Our portpholio is now worth 16,000 NIS. Not bad at all!
John // Oct 24, 2006 at 6:27 am
Thanks, everybody! I am enjoying working on this series.
Harry - I think investment clubs are a great idea. Sounds like you have already seen that investing in Israel is a good idea.
Invest in Israel: The Investing Has Begun! | nun bet // Oct 24, 2006 at 6:28 am
[…] The other day I shared with you all about my desire to see if Investing in Israel really pays. As you remember, I set up a couple of simulated investments in Israeli companies. I am going to track these pretend investments for at least the next three months and I’ll share with you the ups and downs along the way. […]
Investing in Israel: Weekly Update | nun bet // Oct 28, 2006 at 12:47 pm
[…] For those of you just joining us, please read this post to find out what the Invest in Israel series is all about. Remember, I have two simulations running. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game, I have invested almost $1000 in the First Israel Fund (First Israel Fund Game) which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Nov 4, 2006 at 8:21 am
[…] If you’re new to the Invest in Israel series on Nun Bet, you might want to read this post to get some background information. I have two stock simulations running. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game, I have invested almost $1000 in the First Israel Fund (First Israel Fund Game) which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Nov 11, 2006 at 12:50 pm
[…] New to the Invest in Israel series? Read about how it all began. I have two stock simulations running. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game, I have invested almost $1000 in the First Israel Fund (First Israel Fund Game) which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Nov 19, 2006 at 6:50 pm
[…] Yesterday I went to Noorster’s birthday party. While there, some folks mentioned how much they enjoy reading the Invest in Israel series. For those of you new to the series, take a second to read this post that started it all. Basically, I have two stock simulations running. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Nov 28, 2006 at 7:58 pm
[…] The market has been closed for several days for the weekend and the Thanksgiving holiday but I’ve been super busy for the past couple of days! Finally you have the weekly Invest in Israel update. If you’re new to the Invest in Israel series, you can read this post to get some background information. I have two stock simulations running. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Dec 2, 2006 at 2:12 pm
[…] If you’re new to the Invest in Israel series, you can get some background information from this post that launched the series. In short, I have two stock simulations running. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Dec 9, 2006 at 8:11 pm
[…] For those of you newbies, check out the first post in this series. Invest in Israel is a series of blog posts where I am tracking the performance of two stock simulations. […]
Invest in Israel: Weekly Update | nun bet // Dec 20, 2006 at 5:16 am
[…] This Invest in Israel weekly update is going to be short and sweet. I have lots of work to do and this darn cafe closes in a couple of hours. You know how the internet is such a time suck. If you’re new to the Invest in Israel series - WHERE HAVE YOU BEEN?! Seriously, welcome and check out this first post to learn more about the whole deal. Basically, Invest in Israel is a series of blog posts where I am tracking the performance of two stock simulations. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update (Holiday Edition) | nun bet // Jan 13, 2007 at 2:56 pm
[…] It’s the day after Christmas and I am ready to let you all know what’s been going on with my Israeli investments. (I know you’ve been on pins and needles with anticipation!) For those of you that are reading the Invest in Israel series for the first time, check out this first post to learn how it all started. To be brief, Invest in Israel is a series of blog posts where I am tracking the performance of two stock simulations. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Weekly Update | nun bet // Jan 13, 2007 at 9:06 pm
[…] Well, I am finally back to bring you the news about my two stock simulations that I’ve been tracking for the Invest in Israel series. For those of you new to the series, check out this first post where it all started. Basically, Invest in Israel is a series of blog posts where I am tracking the performance of two stock simulations. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Invest in Israel: Final Results | nun bet // Feb 10, 2007 at 8:17 pm
[…] Ok, I am bored with writing the Invest in Israel series. If I am bored - you must have long since grown tired of these “weekly” updates. So this installment of the Invest in Israel series will be the last. For those of you that have no idea what I am talking about, please check out this post to see how it all got started. Invest in Israel is a series of blog posts where I am tracking the performance of two stock simulations. One game (Invest in Israel) is tracking an $1000 investment divided about equally among eight stocks. In the other game (First Israel Fund Game), I have invested almost $1000 in the First Israel Fund which is a “non-diversified, closed-end management investment company that seeks long-term capital appreciation by investing primarily in Israeli securities.” […]
Joyce // May 12, 2008 at 7:20 pm
Ran across you site looking to invest money where my heart is i.e., Israel.
What about investing in shekels?
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