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What Did You Buy Today?
[quote pid='15497' dateline='1541899528']
I'm 25 and started out buying heavily based around a stock's dividend. I have now switched mostly to business perspective investing.

I  own some the classic dividend stocks - JNJ, PG, MCD, XOM, MO, AFL, CAH, ULVR along with MSFT, DIS, SBUX, V and AAPL less pure dividend plays.

The rest of my portfolio contains growth orientated companies that I feel have large economic moats and have the ability to generate a lot of free cash with modest capital input. I am aware that many of these, especially the Chinese holdings, are risky but over the long term they should do well.

These include - ADBE,  BABA, FB, TECHY (down heavily on this one!)

I feel balance is important but am very sceptical of capital intensive businesses like utilities and automakers. I like businesses that can make a lot off very little capital as opposed to businesses that can make a little from very heavy capital input. This is why I have stayed away from T for example.

Maybe this approach would be of help to investors?

Don't go all in low-growth div stocks but don't think you're going to become rich by piling money purely into tech stocks either.

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That port looks appropriate enough for a 25yr old.  It's OK to lose some money while you have time to adjust course.  You aren't "all in" on tech.  I'll be joining you in some of those Chinese stocks at some point, but nothing too substantial.  The first ten years I confused investing skill with a bull market.  I learned about non-diversification, getting greedy, margin abuse etc.  It's an easy trap when no matter you do it works out next month.  The market humbled me and I am fortunate it was only $30K and not a $300K lesson later on.  Just my opinion, but you don't know what kind of an investor you really are until you get your nose bloodied bad, and see how you then react.  This decades perfect plan is rarely ideal next decade.  When the tech bubble crashed I thought I would just ride it out since I owned quality like MSFT, INTC etc.  That's a nice theory until you live it. Valuation at time of purchase will matter eventually.  Waiting 10+ years for a company like MSFT to recover was hard on my net worth (not to mention my appetite for risk).  I was very lucky to have a good income and buy fairly low with new money for the next decade.  But I wish I'd had a little more cash so I could react to my first crash.  I will never be 100% invested again. I'm getting off topic telling investing war stories. 

I'm with you on the FCF. A stock like APPL may very well be your best dividend ten years from now. Those companies can diversify to other sectors going forward if they desire. They can acquire an insurance company if they like. Not so much the other way around.

Don't give up on the utilities.  You lost me some on your logic to avoid them.  I have a 500% return on XEL.  If I had managed to do that a little more often I would be worrying about CD rates a lot more than the S&P 500 now.  Smile    Of course I could have grabbed the wrong utility and I'd be sitting on an extremely low growth dividend play a few years later.  
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[quote pid='15497' dateline='1541899528']



          

       
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(11-10-2018, 09:52 PM)fenders53 Wrote: [quote pid='15497' dateline='1541899528']
I'm 25 and started out buying heavily based around a stock's dividend. I have now switched mostly to business perspective investing.

I  own some the classic dividend stocks - JNJ, PG, MCD, XOM, MO, AFL, CAH, ULVR along with MSFT, DIS, SBUX, V and AAPL less pure dividend plays.

The rest of my portfolio contains growth orientated companies that I feel have large economic moats and have the ability to generate a lot of free cash with modest capital input. I am aware that many of these, especially the Chinese holdings, are risky but over the long term they should do well.

These include - ADBE,  BABA, FB, TECHY (down heavily on this one!)

I feel balance is important but am very sceptical of capital intensive businesses like utilities and automakers. I like businesses that can make a lot off very little capital as opposed to businesses that can make a little from very heavy capital input. This is why I have stayed away from T for example.

Maybe this approach would be of help to investors?

Don't go all in low-growth div stocks but don't think you're going to become rich by piling money purely into tech stocks either.

-------------------------
That port looks appropriate enough for a 25yr old.  It's OK to lose some money while you have time to adjust course.  You aren't "all in" on tech.  I'll be joining you in some of those Chinese stocks at some point, but nothing too substantial.  The first ten years I confused investing skill with a bull market.  I learned about non-diversification, getting greedy, margin abuse etc.  It's an easy trap when no matter you do it works out next month.  The market humbled me and I am fortunate it was only $30K and not a $300K lesson later on.  Just my opinion, but you don't know what kind of an investor you really are until you get your nose bloodied bad, and see how you then react.  This decades perfect plan is rarely ideal next decade.  When the tech bubble crashed I thought I would just ride it out since I owned quality like MSFT, INTC etc.  That's a nice theory until you live it. Valuation at time of purchase will matter eventually.  Waiting 10+ years for a company like MSFT to recover was hard on my net worth (not to mention my appetite for risk).  I was very lucky to have a good income and buy fairly low with new money for the next decade.  But I wish I'd had a little more cash so I could react to my first crash.  I will never be 100% invested again.  I'm getting off topic telling investing war stories. 

I'm with you on the FCF.  A stock like APPL may very well be your best dividend ten years from now.  Those companies can diversify to other sectors going forward if they desire.  They can acquire an insurance company if they like.  Not so much the other way around.  

Don't give up on the utilities.  You lost me some on your logic to avoid them.  I have a 500% return on XEL.  If I had managed to do that a little more often I would be worrying about CD rates a lot more than the S&P 500 now.  Smile    Of course I could have grabbed the wrong utility and I'd be sitting on an extremely low growth dividend play a few years later.    

[quote pid='15497' dateline='1541899528']
Yes like the wrong utilities such as EIX and PCG. Those stocks are getting smoked due to CA wild fires. 


          

       
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Diversification matters. Utility companies all across the nation in this case. This week might be the best time ever to buy EIX, but if you bought last month it could sour you on the sector forever. Good investors keep emotion 100% out of their decisions, but I am human.

Back on topic. Finished out my position in APPL today. Which in this case means one round lot so I can sell a call someday if it runs up too fast. I can only hope that happens. APPL should be repurchasing shares any minute now if they are out of the blackout period. Wonder how long it will be before the same analysts are pounding the table with buy-buy-buy!

Sold a DEC 21st 57.50 put on MO today during the dip at the open due to "menthol" drama. Previously sold calls and puts expire worthless again this Friday. The weekly mini price swings have been easy money. I am long MO also.
BTI appears to be getting stupid cheap with all the FDA menthol nonsense.
(11-13-2018, 11:34 AM)Otter Wrote: BTI appears to be getting stupid cheap with all the FDA menthol nonsense.

It's pure nonsense.  MO is getting hit too and I am playing the game.  I'm supposed to be investing but the never ending market noise is just too easy to trade while I wait.  Smile

I added some HD, and flipped some HD options on the bad reaction to an excellent earnings report.
Bought HD at 176 on the earnings report reaction.
Sold out a small position I had in HCP and added more aapl
Added to VLO and EOG. Oil way over done here!
(11-14-2018, 09:53 AM)divmenow Wrote: Added to VLO and EOG. Oil way over done here!

They say there is no such thing as an oversold commodity but I do hope you are right.  I was looking at VLO some time back but ended up with CVX, BP and some MRO puts.  The oversupply management is going to be complicated.  OPEC can't control supply as effectively as they once could.  Our Prez is going to scream loud when they make any attempt to cut production, which I think they will.  It's just crazy how fast oil went from raging bull to bear.  If it would just settle around $65-70 we would probably have reasonably priced gasoline and happy enough oil company shareholders.
Added to my existing WFC position this morning. Seems fairly valued, and 3.3% yield is solid and well-covered.
LEG, initial purchase
Just increased my BTI position by 1/3.




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