Help me design a growthy port please.

[EricL]

I put together a "growth" watch list when I transferred my ROTH account last fall. This was my list of stocks I found interesting from the CCC List and some others I'd been following.

Company, Ticker
Abbott Laboratories ABT
Accenture Plc ACN
Automatic Data Processing Inc ADP
Amgen, Inc. AMGN
Ameriprise Financial, Inc. AMP
American Tower Corp AMT
Amphenol Corporation APH
American Water Works Company Inc AWK
AutoZone, Inc. AZO
Becton Dickinson and Co BDX
BlackRock, Inc. BLK
Church & Dwight Co., Inc. CHD
Comcast Corporation CMCSA
Canadian National Railway CNI
CyrusOne Inc CONE
Costco Wholesale Corporation COST
CSX Corporation CSX
Cintas Corporation CTAS
Dollar General Corp. DG
Ecolab Inc. ECL
Estee Lauder Companies Inc EL
Enbridge Inc ENB
Exponent, Inc. EXPO
FactSet Research Systems Inc. FDS
Fiserv Inc FISV
General Dynamics Corporation GD
Home Depot Inc HD
HDFC Bank Limited HDB
Heico Corp HEI
Honeywell International Inc. HON
Hormel Foods Corp HRL
Intercontinental Exchange Inc ICE
Intuit Inc. INTU
L3Harris Technologies Inc LHX
Lockheed Martin Corporation LMT
Lowe`s Companies Inc LOW
Mastercard Inc MA
Moody's Corporation MCO
Microsoft Corporation MSFT
Nike Inc NKE
Northrop Grumman Corporation NOC
Norfolk Southern Corp. NSC
ONEOK, Inc. OKE
O'Reilly Automotive Inc ORLY
Bank Ozk OZK
Primerica, Inc. PRI
Ross Stores, Inc. ROST
Starbucks Corporation SBUX
Sherwin-Williams Co SHW
Snap-on Incorporated SNA
Stryker Corporation SYK
TJX Companies Inc TJX
Tractor Supply Company TSCO
Toro Co TTC
Ulta Beauty Inc ULTA
UnitedHealth Group Inc UNH
Union Pacific Corporation UNP
U.S. Physical Therapy, Inc. USPH
Visa Inc V

[fenders53]

Thanks Eric,

Repeating myself here but I think I am going to jump in on a couple stocks now, and try to take my time adding new ones since many of my favorites are really stretching. It will be fun to research and add a new stock now and then. It will be OK if I reverse course and change a pick in a few months. I trade my big port too much, and this will be nice because I won't be tempted to flip three shares than ran up lol.

I am going to throw out my picks and it won't hurt my feelings at all if you guys object, especially if I start chasing a debt problem. I think I should grab a few stocks that are undervalued currently. I really want to own some of the previously discussed stocks but I don't want to chase them in this environment. So here is the starting point. I am flipping a few shares from my main port starting last night. I had small positions anyway.

CAT- Local company, hate that it is cyclical but it's not crazy overvalued. I already made money flipping it earlier this year so "buying" a little high in this port I can deal with.

CVS-Still very undervalued IMO. I trust they will find some momentum and the non-growing Div is fine for now. I will be done with retail for now after I add DG. CVS is more than retail of course.

WEC-This will be my growthy UTE. Overvalued IMO but it seemingly always has been. Already own a few shares in my big port I will "transfer".

Maybe I will get lucky and get a 2% average DIV in this port. There will definitely be a few non div stocks in the mix.

I'll add a few more soon. GD is likely. I think it may stay down long enough to accrue a position.

[divmenow]

(10-16-2020, 09:39 AM)fenders53 Wrote: Thanks Eric,  

Repeating myself here but I think I am going to jump in on a couple stocks now, and try to  take my time adding new ones since many of my favorites are really stretching.  It will be fun to research and add a new stock now and then.  It will be OK if I reverse course and change a pick in a few months.  I trade my big port too much, and this will be nice because I won't be tempted to flip three shares than ran up lol.

I am going to throw out my picks and it won't hurt my feelings at all if you guys object, especially if I start chasing a debt problem.  I think I should grab a few stocks that are undervalued currently.  I really want to own some of the previously discussed stocks but I don't want to chase them in this environment.  So here is the starting point.  I am flipping a few shares from my main port starting last night.  I had small positions anyway.

CAT- Local company, hate that it is cyclical but it's not crazy overvalued. I already made money flipping it earlier this year so "buying" a little high in this port I can deal with.  

CVS-Still very undervalued IMO.  I trust they will find some momentum and the non-growing Div is fine for now.  I will be done with retail for now after I add DG.  CVS is more than retail of course.

WEC-This will be my growthy UTE.  Overvalued IMO but it seemingly always has been.  Already own a few shares in my big port I will "transfer".      

Maybe I will get lucky and get a 2% average DIV in this port.  There will definitely be a few non div stocks in the mix.

I'll add a few more soon.  GD is likely.  I think it may stay down long enough to accrue a position.

I like your picks other then WEC. I just think that entire sector has run up way to fast and nothing to justify the moves.  To me all the utilities way over valued. I hold many but wont put any new money into that sector unless they get back to normal valuations. 

CAT is breaking out to the upside and is cheap compared to everything else. I see $180

CVS has just been hanging. It's been out of favor forever. But if WBA can beat earnings, then that's a positive for CVS 

GD is dead. I would much rather own HII. I have been buying in that $139-142 range. For one thing, at just 0.64 times trailing sales, Huntington Ingalls stock now trades for about a one-third discount to the average, historical market valuation of major defense contractors. The company churns out about $1.42 in actual free cash flow -- meaning the stock's price-to-free cash flow ratio is only 7.6.

That's my gift to you today

[fenders53]

(10-16-2020, 01:59 PM)divmenow Wrote:

(10-16-2020, 09:39 AM)fenders53 Wrote: Thanks Eric,  

Repeating myself here but I think I am going to jump in on a couple stocks now, and try to  take my time adding new ones since many of my favorites are really stretching.  It will be fun to research and add a new stock now and then.  It will be OK if I reverse course and change a pick in a few months.  I trade my big port too much, and this will be nice because I won't be tempted to flip three shares than ran up lol.

I am going to throw out my picks and it won't hurt my feelings at all if you guys object, especially if I start chasing a debt problem.  I think I should grab a few stocks that are undervalued currently.  I really want to own some of the previously discussed stocks but I don't want to chase them in this environment.  So here is the starting point.  I am flipping a few shares from my main port starting last night.  I had small positions anyway.

CAT- Local company, hate that it is cyclical but it's not crazy overvalued. I already made money flipping it earlier this year so "buying" a little high in this port I can deal with.  

CVS-Still very undervalued IMO.  I trust they will find some momentum and the non-growing Div is fine for now.  I will be done with retail for now after I add DG.  CVS is more than retail of course.

WEC-This will be my growthy UTE.  Overvalued IMO but it seemingly always has been.  Already own a few shares in my big port I will "transfer".      

Maybe I will get lucky and get a 2% average DIV in this port.  There will definitely be a few non div stocks in the mix.

I'll add a few more soon.  GD is likely.  I think it may stay down long enough to accrue a position.

I like your picks other then WEC. I just think that entire sector has run up way to fast and nothing to justify the moves.  To me all the utilities way over valued. I hold many but wont put any new money into that sector unless they get back to normal valuations. 

CAT is breaking out to the upside and is cheap compared to everything else. I see $180

CVS has just been hanging. It's been out of favor forever. But if WBA can beat earnings, then that's a positive for CVS 

GD is dead. I would much rather own HII. I have been buying in that $139-142 range. For one thing, at just 0.64 times trailing sales, Huntington Ingalls stock now trades for about a one-third discount to the average, historical market valuation of major defense contractors. The company churns out about $1.42 in actual free cash flow -- meaning the stock's price-to-free cash flow ratio is only 7.6.

That's my gift to you today

Not sure how I'll ever repay you but I will sure try lol   

I'm not overly concerned with short-term pricing.  Well except I don't want to buy too many $300 shares now when it was $250 six weeks ago and shouldn't have moved.  The intended hold period is five years.  I may or may not sell out the entire port even then.  I'll be pension rich by then lol.  I am NOT going to swing trade this port every time a stock runs 10 points and gets overbought.  Now 100pts, we'll talk about that when it happens.  My big port keeps me more than entertained.  I am going to treat this more like Eric does, and bore you with quarterly updates lol.  

You were pumping GD  just a few months ago.  What changed?  They have commercial air exposure.  It's an RTX story, or something similar for now.  Seriously though, no problem with you disagreeing since I am holding you personally responsible lol..  
 
I like WEC.  Steady performer, already going green and small enough to perhaps expand regionally someday.  I just never buy enough shares because it's been expensive for a long time.  I actually sold some excess today.  The growth port now has two shares and I'll average in from here.  I have much larger positions of about five other UTEs in my main port.  Most aren't as growthy as WEC.  I sell calls against them up here.  They are almost all overvalued.  

CAT got several upgrades today.  I have only two shares of this as well.          

CVS has little downside risk and it's due to run some year soon as they digest the acquisition.  I bought it at rock bottom a few years ago.  I sell puts against it when it goes sub $60, and covered calls later.  Been a great income stock but that's not what this port is about.  It will run 50% eventually and pay a good dividend while I accumulate.  Or maybe they'll get "Amazoned" lol.  I have five shares in the new port.

[fenders53]

Added a single share of UNP on the earnings miss this morning. I expect it may go lower but I wanted to get it in the port before I change my mind. In any event it's better than paying $210 a few days ago. This is going a little slow but I hate to start the port with everything at a 52 week high. So far I have added CAT, WEC and UNP. CVS missed my limit order so I didn't get the shares but I should get another chance soon.

EDIT: Just added five shares of VSTO. This will be my spec I build if I don't change my mind. (No more than two lol.) I really like what they are up to and have been harvesting put premiums in my main port.

[fenders53]

Added ADP to the port today. Mostly just recording them here so I can start my spreadsheet when I get a chance. I am running out of month and still have half my OCT money left to invest. Finally got CVS in the port today.

[fenders53]

Started AVGO. My first tech. Might be my only one for awhile. I really want to add some of the famous consumer focused mega cap high flyers but I just can't lean into 30 PEs yet.

[fenders53]

If anyone is still paying attention, how about a REIT that qualifies as "growthy". Nothing real spec, something fairly mature but with a legitimate shot of growing 5% for 5-10 years. I'll DRIP the dividend back into it so a huge yield is not significant to me. Nothing wrong with O but something like STOR for this port maybe? I don't want to abandon my growth theme. I'd like to see if this outperforms my boring port on a risk reward basis, so I don't want to pollute it with income oriented stocks.

PS, I need another stock that doesn't cost $300 per share so I can get the loose change invested when my $2500 is gone for the month.

[EricL]

(10-27-2020, 04:19 PM)fenders53 Wrote: If anyone is still paying attention, how about a REIT that qualifies as "growthy".  Nothing real spec,  something fairly mature but with a legitimate shot of growing 5% for 5-10 years.  I'll DRIP the dividend back into it so a huge yield is not significant to me.  Nothing wrong with O but something like STOR for this port maybe?  I don't want to abandon my growth theme.  I'd like to see if this outperforms my boring port on a risk reward basis, so I don't want to pollute it with income oriented stocks.

PS, I need another stock that doesn't cost $300 per share so I can get the loose change invested when my $2500 is gone for the month.

Some growthy REITs I like are the cell tower companies AMT and CCI and data center companies DLR and COR.

[fenders53]

(10-27-2020, 08:29 PM)EricL Wrote:

(10-27-2020, 04:19 PM)fenders53 Wrote: If anyone is still paying attention, how about a REIT that qualifies as "growthy".  Nothing real spec,  something fairly mature but with a legitimate shot of growing 5% for 5-10 years.  I'll DRIP the dividend back into it so a huge yield is not significant to me.  Nothing wrong with O but something like STOR for this port maybe?  I don't want to abandon my growth theme.  I'd like to see if this outperforms my boring port on a risk reward basis, so I don't want to pollute it with income oriented stocks.

PS, I need another stock that doesn't cost $300 per share so I can get the loose change invested when my $2500 is gone for the month.

Some growthy REITs I like are the cell tower companies AMT and CCI and data center companies DLR and COR.

Appreciate the suggestions.  A CELL tower REIT sounds good and I have a limit order in on AMT.  I was hopeful the election would bring a market dip and glad I waiting almost a month to employ my first months cash.  I didn't want to wreck the mood being down 10% on everything days after purchase.  Many tickers are on sale so I think I will probably end up with a few too many.  I'll sort out the extras after more research and maybe make lunch money on the ones I cull.  I'll just have to feed them monthly after this and try to avoid market timing. I can get comfortable with that after I determine I like what I bought for at least the mid term.

[fenders53]

Started a position in MA. AMT order got filled as well. I have more research to do before I add anymore. I'm trusting you man! Just kidding, it's only one share for now. I need to look into debt etc. The market is chaotic and I feel the need to get at least a little cash deployed on every down day.

[fenders53]

Here's the first end of month report. Started buying OCT 14th so I only had two weeks to lose money. I started a spreadsheet but may ask to use one of Eric's. I'm not trying to make this complicated but would like to track it. I do want to have some rules, but they are a little loose until I refine them. I am going to stick with $2500 new money every month. I spent $3096.29 in OCT and that was after I kicked CVS out of the port. Down $51.35 total. The port can borrow up to $2500. I want the flexibility to buy when the market dips, and get it back to right when the market runs and I shouldn't be forcing purchases. Mostly no market timing though. Once the port is full I'll add to something. Definitely adding some tech in November and that money is available Monday. Probably 12-15 stock goal in the near term. If I decide a stock isn't a legit 5% revenue grower for minimum three years it will be evicted. I have limit orders in on GOOGL and MSFT. We'll see, I don't intend to chase high fliers, and I'll have to fight the urge to average losers down a rat hole. Formatting is bad so I'm just listing stocks and total shares. . First number is shares. Last is gain/loss. I put too much effort into trying to catch bottoms for just a couple shares. In the future I'll just enter a few limit orders early in the month and adjust it a few times throughout the month if they don't fill.


APD AIR PRODUCTS 2 -10.02
AMT AMERICAN TOWER 1 -0.35
AVGO BROADCOM 1 -10.37
CAT CATERPILLAR 2 -6.44
LLY ELI LILLY 3 -0.12
MA MASTER CARD 2 -0.72
UNP UNION PACIFIC 3 -21.43
VSTO VISTA OUTDOORS 5 -1.90

COST 3096.29 RETURN -51.35

The $2500/mo is harvested from my option selling scam. In two years I'll have $60K of my own money in this port. That should pay for my new retirement truck and then some. With any luck I'll make the market hit that goal sooner.