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Sorry I haven't posted in a while.
I have been buying FB (Heavily), TECHY (Heavily), ADBE (Nibbling), BABA (Standard), SBUX (Standard), V (Adding to current position).
I know FB isn't a divi stock but I think it will be in future maybe 5-10 years but who knows. I think it's oversold here and people are underestimating its huge moat and insane cash generation. The $40bn in the bank is nice too  .
Tencent and BABA are a bit more of a roll of the dice admittedly but are also both very cheap here imo, given the irrationality of markets towards Chinese stocks. I would be heavier BABA if it wasn't for the shaky way in which its listed. Don't hate me since BABA isn't a dividend stock. We all have room for a small spec stock I'm sure  !
Adobe is expensive hence the nibble as opposed to the full position, hoping for a bloodbath so it collapses.
Both SBUX and V have been discussed already .
What do you guys think of these buys? Would be great to have some insights, support or counter-narrative!
Cheers,
Lewys
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(10-25-2018, 12:33 PM)DividendGarden Wrote: Anybody picking up AT&T (T) at these levels? It's dipped below $30/share and is yielding 6.7%.
Think I may be one of the only ones/few ones here that don't like T.
It has very large Capex requirements, little room do differentiate to produce sustainably above-average margins.
The Direct-TV acquisition has always perplexed me too. Seems like on of Lynch's "Diworseifications".
It's encouraging to see the execs piling in though!
Lewys
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10-25-2018, 09:28 PM
(This post was last modified: 10-25-2018, 09:37 PM by fenders53.)
(10-25-2018, 07:51 PM)DividendDragon Wrote: Sorry I haven't posted in a while.
I have been buying FB (Heavily), TECHY (Heavily), ADBE (Nibbling), BABA (Standard), SBUX (Standard), V (Adding to current position).
I know FB isn't a divi stock but I think it will be in future maybe 5-10 years but who knows. I think it's oversold here and people are underestimating its huge moat and insane cash generation. The $40bn in the bank is nice too .
Tencent and BABA are a bit more of a roll of the dice admittedly but are also both very cheap here imo, given the irrationality of markets towards Chinese stocks. I would be heavier BABA if it wasn't for the shaky way in which its listed. Don't hate me since BABA isn't a dividend stock. We all have room for a small spec stock I'm sure !
Adobe is expensive hence the nibble as opposed to the full position, hoping for a bloodbath so it collapses.
Both SBUX and V have been discussed already .
What do you guys think of these buys? Would be great to have some insights, support or counter-narrative!
Cheers,
Lewys
I like a few stocks on that list. If I started over V would be my only financial stock. Dividend is weak but it's a steady performer that avoids the interest rate risk of the banks. I think BABA is a good LT play. I would not touch it until the trade wars and Chinese stock market meltdown subsides though. It may be fine but I wouldn't be shocked to see it drop farther. FB has years of growth left and it already took a beating so it might be time to start averaging in since the US market seems to get hammered several times a week. SBUX is interesting but it never seems to get on my top ten buy list. I'm going to hope you don't get a bloodbath to buy Adobe. I've had about enough tech blood lately thank you.
As far as T they need to pay down some debt and they say they can accomplish much of that in 2019. Their cash flow is good and the stock acts like a utility. A lot of days it even trades counter to the market like a utility. The dividend is just hard to pass up. Verizon is probably a better bet for total return unless T gets their act together soon. I see more aquisitions in their future but they better absorb this one correctly first.
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(10-25-2018, 09:28 PM)fenders53 Wrote: (10-25-2018, 07:51 PM)DividendDragon Wrote: Sorry I haven't posted in a while.
I have been buying FB (Heavily), TECHY (Heavily), ADBE (Nibbling), BABA (Standard), SBUX (Standard), V (Adding to current position).
I know FB isn't a divi stock but I think it will be in future maybe 5-10 years but who knows. I think it's oversold here and people are underestimating its huge moat and insane cash generation. The $40bn in the bank is nice too .
Tencent and BABA are a bit more of a roll of the dice admittedly but are also both very cheap here imo, given the irrationality of markets towards Chinese stocks. I would be heavier BABA if it wasn't for the shaky way in which its listed. Don't hate me since BABA isn't a dividend stock. We all have room for a small spec stock I'm sure !
Adobe is expensive hence the nibble as opposed to the full position, hoping for a bloodbath so it collapses.
Both SBUX and V have been discussed already .
What do you guys think of these buys? Would be great to have some insights, support or counter-narrative!
Cheers,
Lewys
I like a few stocks on that list. If I started over V would be my only financial stock. Dividend is weak but it's a steady performer that avoids the interest rate risk of the banks. I think BABA is a good LT play. I would not touch it until the trade wars and Chinese stock market meltdown subsides though. It may be fine but I wouldn't be shocked to see it drop farther. FB has years of growth left and it already took a beating so it might be time to start averaging in since the US market seems to get hammered several times a week. SBUX is interesting but it never seems to get on my top ten buy list. I'm going to hope you don't get a bloodbath to buy Adobe. I've had about enough tech blood lately thank you.
As far as T they need to pay down some debt and they say they can accomplish much of that in 2019. Their cash flow is good and the stock acts like a utility. A lot of days it even trades counter to the market like a utility. The dividend is just hard to pass up. Verizon is probably a better bet for total return unless T gets their act together soon. I see more acquisitions in their future but they better absorb this one correctly first.
Good insight!
With BABA - I don't mind so much if it keeps going downwards. I never try to time the markets I simply ask, "Is 'X' worth this price?". If it is, I buy!
In declining and volatile markets like this I like to start at fair value and average downwards. My broker charges under $1 in transaction costs and no portfolio management fee, so I'm able to do so cheaply .
I am 15% of my portfolio in FB - let's hope it works out - if not then I'm only 25, I'm sure I can make the money back aha!
I guess, if I'm ever going to inject risk into my portfolio it's now rather than when I'm 55 and want to retire.
Is your portfolio on this site anywhere?
I'd love to have a nose.
Lewys
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10-26-2018, 07:27 AM
(This post was last modified: 10-26-2018, 07:46 AM by fenders53.)
Dragon
I just turned 56 this week. I am at your planned retirement age, and have been semi-retired for a few years. My portfolio is not online, and I am transitioning from my old employer retirement account to Vanguard I caught a break and was in cash. I missed a lot of the recent market drop. I have a lot of my equity money in SP 500 and small caps. I also have a half dozen ETFs. I don;t need total diversification among my stocks. I enter individual stocks selling puts, so it takes time to be forced into purchases while I make some income. I DO care a lot about my entry point because I probably don't have 30 years to wait. I don't want to pay $150 for BABA and watch it drop to $100 for a year because I could have purchased more share. Here is where I would like to end up soon.
Core positions all at 3-5% of total port- JNJ,ABT,AMZN,APPL,HD, Utilities (I really like utilities) XEL AEP and SO, and T which may or may not remain a core.
Smaller positions around 1% of total port-MO-KHC,MET,BAC,DIS,MCD, F, a REIT to be named later. Too many oil stocks I now regret and definitely intend to trim (CVX,XOM,MRO,BP,KMI). I still make some questionable moves but not like when I was 25 lol.
My equity positions are a work in progress. I would like to own 3M core but this is not a good time for industrials yet, and 3M is not executing currently.
I am about 45% in money markets, CDs and very short T-bills. I keep cash around so I hacve a crash fund if this gets much worse. I have rental real estate as well.
Back on thread topic I would like to buy a lot more utilities when they dip some. They have been on a run I didn't expect with rising interest rates. Every market pull back is different.
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T under 30. I may have to reevaluate my thoughts on a "full position." Pigs get fat . . .
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With all the good buys out there, there's too many so I added DGRO to my wife's IRA. Might as well buy them all.
Sent from my Pixel using Tapatalk
Bought BLK for the first time. A lot on the list. APD, LEG, AMP, ETN, SWK, maybe more ITW and TXN
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Young DGI here -- do we think that T's yield is safe? It's already 10% of my portfolio (130 shares) -- is it worth picking up some more? Or should I diversify into VZ? I also have IBM -- rough week, hahaha
(10-27-2018, 08:41 PM)dizzy9479 Wrote: Young DGI here -- do we think that T's yield is safe? It's already 10% of my portfolio (130 shares) -- is it worth picking up some more? Or should I diversify into VZ? I also have IBM -- rough week, hahaha
This is just my opinion, but buying VZ is not diversification in this case. I would personally not be worried about a 10% long-term as I plan to add a lot more in the future and the ration will thus drop. However, right now I would not buy much more if I had doubts about safety.
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(10-27-2018, 08:41 PM)dizzy9479 Wrote: Young DGI here -- do we think that T's yield is safe? It's already 10% of my portfolio (130 shares) -- is it worth picking up some more? Or should I diversify into VZ? I also have IBM -- rough week, hahaha
I like not to diversify and keep my portfolio to below 15 positions.
This helps me know the companies I own inside out.
I used to have over 30 positions though and it all got too much to track and be comfortable with.
Moving on to T, I would take heart from directors buying but I would also worry about the company's massive capex commitments.
Ok, FCF looks good vs dividend payout but remember that depreciation is a real expense - especially for a telecoms company such as T.
Looks tight to me. But then again I don't know the company, just took a quick look
I was never really a fan of the DirectTV purchase either.
Lewys
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10-28-2018, 10:08 AM
(This post was last modified: 10-28-2018, 10:14 AM by fenders53.)
15 stocks is diversified if done correctly. You could do it well enough with half that if you add a few index funds and sector ETFs. If I add too many individual stocks I am constantly dealing with one or two that are imploding. It's hard to have 30 real good, and lasting ideas at once. The lasting part isn't simple no matter how good it looks this year. I suspect there are many correct answers to the proper amount of holdings. If you get lucky and enter the market at the right time every strategy looks good. You don't really know until the next market meltdown. Everyone is a guru during a bull market.
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