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+--- Thread: Building a high quality port, Sector-Industrials (/showthread.php?tid=1871)
Building a high quality port, Sector-Industrials - fenders53 - 10-03-2019
I thought we might pool our knowledge and build a very high quality port together. Sector by sector. I'll ask that you not copy your entire port into this thread. You can post again later. Industrials would include defense stocks. Maybe follow a few basic rules....
1. Pick one or two stocks and tell us why they would be your pick if you could only choose a few stocks from each sector.
2. Assume a five year hold minimum, because if it's truly good for five it's probably good for 25. Five years is enough time to sort out current challenges.
3. Ignore current valuation for the most part. Entry matters of course, but great ports aren't built overnight anyway.
4. Suggest a stock you have some conviction to own soon. Suggest a stock you would avoid.
I can think of many but I won't hog all the good ideas. This thread is about best in class companies. not a laundry list of stuff we happened to buy.
Honeywell-HON, the more I see the more I like. The balance sheet and income statement look rock solid. They have consistently raised the dividend far above average and struggle to keep it above 2% due to SP appreciation. DIV payout remain ratio is low, debt is low enough. Very diversified. PE is reasonable.
Industrials to avoid... The automakers, but I'll just pick on Ford- F I own it but it's a trade I may regret. Looks like a classic value trap. About the only time to make money is buy them when they are losing money and the PE is -100, if you think they won't go BK. I don't see a clear path ahead for any auto stock anytime soon.
RE: Building a high quality port, Sector-Industrials - ChadR - 10-04-2019
3M Company, MMM. Rock solid balance sheet with a 3.7% dividend. Currently own it and will most likely be adding more to it. PE is below 20 too which makes it an attractive buy right now.
One to avoid is GE. Yeah, I'm using them again, but they burned me twice with the dividend cut so I'm using them twice. Yeah, I might be a little bitter over GE.
RE: Building a high quality port, Sector-Industrials - rayray - 10-04-2019
Fenders, sorry for a second time.
EMR--hold
ETN--hold
AOS--hold
UNP--hold
NSC--hold
CNI--hold
I guess we can put the auto here
F--hold
GM--hold
MGA--hold
I juat haven't looked at these in a while and while some are beat up until further dd all a hold
RE: Building a high quality port, Sector-Industrials - NilesMike - 10-04-2019
AOS
Very good div growth. Low payout %. Industry leader.
Div is too low for me but might be a great stock for someone younger.
Nov 40 Puts (11% out of the money)might be of interest. Equals 1/2 year of dividend and if assigned you are really getting a good price (39.50)
RE: Building a high quality port, Sector-Industrials - fenders53 - 10-04-2019
(10-04-2019, 06:23 PM)rayray Wrote: Fenders, sorry for a second time.We aren;t building an under achieving port? You can have another chance lol. I thought industrials might be easier than most sectors with a five year minimum.
EMR--hold
ETN--hold
AOS--hold
UNP--hold
NSC--hold
CNI--hold
I guess we can put the auto here
F--hold
GM--hold
MGA--hold
I juat haven't looked at these in a while and while some are beat up until further dd all a hold
RE: Building a high quality port, Sector-Industrials - rayray - 10-05-2019
(10-04-2019, 09:45 PM)fenders53 Wrote: We aren;t building an under achieving port? You can have another chance lol. I thought industrials might be easier than most sectors with a five year minimum.
I'm hear to turn lemons into lemonade, for others to learn from my psychotic ways : )
Good thread by the way, maybe, I'm not sure if we did this here before or not but build a portfolio using all the sectors, 2 or 3 stocks per sector?
RE: Building a high quality port, Sector-Industrials - NilesMike - 10-05-2019
A little old and not a light read but some may find it useful.
https://www.suredividend.com/wp-content/uploads/2017/07/Contrarian-Investment-Extrapolation-and-Risk.pdf
RE: Building a high quality port, Sector-Industrials - NilesMike - 10-05-2019
DAN
2.92% yield, 25% payout well below their average PE, near 8 year lows selling near Book Value.
Will nibble Monday
RE: Building a high quality port, Sector-Industrials - fenders53 - 10-05-2019
(10-05-2019, 07:41 AM)rayray Wrote:(10-04-2019, 09:45 PM)fenders53 Wrote: We aren;t building an under achieving port? You can have another chance lol. I thought industrials might be easier than most sectors with a five year minimum.
I'm hear to turn lemons into lemonade, for others to learn from my psychotic ways : )
Good thread by the way, maybe, I'm not sure if we did this here before or not but build a portfolio using all the sectors, 2 or 3 stocks per sector?
Yes, something like that. Maybe we'll end up with ten outstanding industrials, or maybe only five? I wasn't really trying to make a list of every industrial in the S&P200 here
We've already had those threads where we list 500 stocks we collectively own. Most everything is overvalued to some degree. Every stock need not be a table pounding buy today.