What Did You Buy Today?

[fenders53]

(02-14-2020, 06:26 AM)crimsonghost747 Wrote:

(02-13-2020, 08:12 PM)fenders53 Wrote: Started a small position in RTN and LHX today.

Funnily enough, these are my two picks from the sector. Great minds think alike? Fools seldom differ?

RTN was actually my first stock purchase from the US markets and it has remained as the largest position in my portfolio ever since that day. My LHX holding is much smaller but I'm playing catch up by adding to LHX once in a while.

These are about as safe as an industrial is going to get in this market.  Some growth is assured with our recent defense budgets.  The pendulum will swing someday of course because defense spending is currently obscene, but all the defense majors are locked into contracts that will keep the lights on for a long time.  I wasn't really excited about the RTN/UTX merger as it might make them too big for significant growth eventually, but the diversification in commercial aviation will be a good thing after the Boeing mess sorts itself out.

For better or worse, my current intention is to get myself a little overweight defense if they don't run away from me.  If I am fortunate enough to get some gains, I'll move some to CAT and MMM later if they continue to struggle.  HON doesn't look too bad long-term either.  I'm very underweight industrials, and a little voice tells me I'll find myself down 10% if I wade into MMM and CAT too fast.  CAT was about 115 in OCT and I am kicking myself.  Sold a couple puts and made chump change.