Help me design a growthy port please.

[fenders53]

(10-16-2020, 04:04 AM)crimsonghost747 Wrote: I know you don't particularly like the sector, and growth is hard to see these days, but how about airlines? 5 years sounds like a pretty good timeline for things to return to normal, and as you are well aware the stocks are anywhere between -50% and -75% from where they were at the start of the year.

Same logic could be used for cruise line stocks. And probably some restaurant stocks too. The idea with all of these is that if you are indeed planning on using the money in about 5 years, these could bring in some decent capital gains simply because they are absolutely destroyed right now.

Tech:
UI has done some tremendous things in the past years but the growth has been slowing down and it's definitely too expensive right now. I wouldn't recommend buying now but worth keeping your eyes on it. Also a potential buyout target since the CEO owns something like 85% already and share repurchases are eating up the remaining shares.

U is a very interesting company in the tech space. Super highly valued and no real historical data yet as it just IPO'd last month or something like that.

V and/or MA would also fit pretty well I think.

I appreciate the income from all you guys.  I've been thinking about this for two months but I new you guys would have some good idea.  

I think I am going to avoid the IPO and highly speculative game early on.  I do want this to be different than my big port, but mostly blue chips.  I was disappointed to see how overvalued most everything on my list is.  I'm not expecting March 20 prices, but I'm not to keen on buying stocks that are up 10%+ in just a few weeks either.  My random thoughts for today are as follows lol.......

-Allow myself until NOV 15th to get this month and next months funds invested.  That is $5K total.

-I probably should add a sector that is beaten down.  I don't hate airlines, I'm just a realist and holding DAL and AAL was painful this spring.  There are a few airlines that won't BK, but they are years from a profit so the timeline does work.  GD even crossed my mind as they will be years recovering from commercial air drawdown.  BA is a nope, only because it could easily take even longer to right the balance sheet.  I think I'll avoid the cruise lines. BKs are even more possible there for sure.  Restaurants maybe, but I want a pullback before I buy significant shares. Many of them got way ahead of themselves IMO.  I could buy a few shares though.  I can dump a stock and flip to another in a sector.  I just don't want to make that a habit.  It's fun and I'll get out of control lol.     

-I am avoiding any and all longtime dog stocks like T, MO, F, XOM etc.  Completely misses the theme of this port as they need to be swing traded for any real CAP appreciation.  

-A foreign stock is not out of the question.  Perhaps an established midcap in a growthy sector?  I don't need to make all these picks immediately.  This will get much easier the next time the market pulls back 10-15% as some individual stocks will get hit worse.  So I guess I'll get started but go slowly while I wait for an election or a pandemic to create an opportunity.  A stimulus will nullify all that for a time of course.

-And here is a rule that will keep me from storing cash and market timing.  This port has been approve for a $2500 credit line from my main port.    So I'm never cashless if the market drops the day after I make my monthly purchases.

-For now I am going to put the funds in a short-term bond ETF or similar.  Somewhere I can get near a 1% return.  Makes it easier to track the interest accrued by keeping it out of my large settlement account.

Divmenow, I'll throw up some renewables tickers today.  I am thinking mostly staying away from the highly commoditized area.  A company that only manufactures solar cells is going to struggle competing with China etc.  Valuations on these stocks are just whacked.  Most of the weak ones are even up 3x in six months with zippo earnings.