I thought it was about time I updated my stock market activity. In May last year I wrote about how I had grown $100,000 to $373,800 in a year by investing in mining stocks.

After that I got cold feet and took my cash out of the market, missing out on more tidy profits. I’d been reading Martin Zweig’s Winning on Wall Street and I was concerned about having a lot of cash in the market while interest rates were rising.

On the other hand, watching prices continue to rise was irritating. Furthermore, the Chinese economy, which in large part is responsible for the mining stocks’ boom was continuing to grow at a ferocious rate. I decided to go back into the market, taking heed of Zweig’s advice not to commit all of my funds because of my uncertainty about the effects of interest rates on the stock market. I decided to do as I had done before and invest $100,000 into the same four ASX stocks - I did this on November 2 last year. I bought:

  • Compass Resources CMR at $4.52 per share
  • BHP Billiton BHP at $27.31 per share
  • Oxiana OXR at $3.22 per share
  • Kagara Zinc KZL at $6.90 per share

As of the close of the ASX on Friday afternoon, prices were:

  • Compass Resources CMR at $5.00 per share
  • BHP Billiton BHP at $30.71 per share
  • Oxiana OXR at $3.24 per share
  • Kagara Zinc KZL at $6.18 per share

Overall that’s a 3.3% gain, or 6% annualized. I’d have been as well keeping the money in the bank. We’ll see how things pan out over the next few months.