Stock AIG Purchase Update

Last week I mentioned that my son was going to purchase shares in AIG, and we have… and now it’s time for an update, and a closer look at the stock.

If you are interested in why we did this, and our plan around AIG, read the article “Is AIG The Stock For The Future?“.

Now for the AIG Purchase specifics:

I bought shares of the stock in two allotments for at average price of $34.77.  Instead of buying just $1,000 worth of stock, I increased the investment amount to $2,100.  You might be wondering, why $2,100?  Well, for some reason I like my stock share purchases to end in zeroes, so $2,100 is 60 shares worth of the stock.  Why do I do this?  I have no idea…

So how is AIG doing for me after a week?

Well, I’m up 3.84%!



While that seems like a pretty good number, it’s caused mostly by the rally in the entire stock market that has happened these past few days!  I’m not really concerned about the valuation of the stock at this point since we’ll (well my son anyway) will be holding the stock for around 5 to 10 years.  I’m just mentioning it here to give the specifics of the purchase, the valuation will rise and fall many times in five to ten years…

Learning About AIG:

AIG has sold a decent amount of it’s non-core businesses that it owned.  This has helped them pay back the U.S. government.  Obviously, many of the businesses being sold were valuable, and will affect the amount of room that AIG has to grow in the future, but I guess they have to do what they have to do to get the US government paid back!  Such liquidation of the company (I’m over-exaggerating here), means that it won’t be hitting it’s historic high for a long, long time (if ever).

Another noteworthy piece of new is that the government is lumping AIG into a group called SIFI, which stands for “Systemically Important Financial Institutions” (SIFI) and thus to be regulated closely by the Federal Reserve.  This doesn’t sounds promising, but it is what it is…

So I’m not entirely as optimistic as I was previously about the stock climbing as quickly as I thought, but I do think it will be a great investment for us (yeah, I bought some too) in the long run.

Only time will tell!

Thanks for reading,