What Did You Buy Today?

[fenders53]

(05-04-2020, 02:46 PM)Otter Wrote:

(05-04-2020, 12:51 PM)fenders53 Wrote:

(05-04-2020, 12:31 PM)Otter Wrote:

(05-04-2020, 12:25 PM)fenders53 Wrote: Added some BMY shares and sold a put so I can be overweight if they blow earnings tomorrow.    

Seriously though, IMO it is probably the only big pharma stock that might be undervalued. We never know for sure until the drug trial results come in.  They have an important trial result coming in the next few weeks. It's rarely better than a 50/50 shot.  Their pipeline is as good as the competition.

GILD, MRK, and PFE also appear fairly valued. Not screaming deals, but fair value.

The only two stocks I have held 25+ years consecutive are PFE and XEL.  Guess which one isn't a 10 bagger?  I am wearing my "Pfizer Broken Dreams" T-shirt as I type this, so go tell your PFE lies somewhere else.     

I own over 500 shares of PFE.  Apparently I am a little slow lol.  I am overweight MRK.  I'd like to trim it but this is not the week.

PFE has grown earnings by an average of 4.85% annually over the past 20 years (as far as I can go back in FAST Graphs). 20 years ago, PFE traded at $45.15 with a P/E north of 43. Today it trades at $37.71, but with a P/E of around 13.2. If PFE had traded at a rational earnings multiple of 15 or less 20 years ago, investors would have enjoyed positive total return over the intervening 20 years (although not market-beating). 

The chart for PFE (and a lot of other bubble stocks from the late 90s) is a helpful reminder any time I am tempted to buy DG, MSFT, WMT, and many others I would like to own, at present valuations.

I bought most of my early PFE shares then.  From about 30-40 IIRC. It actually looked like a sane purchase relative to the rest of the market.  Valuation always matters eventually.  If not for the dividends I'm not certain my return would have been back to even for 20+ years.  I just left it in my wife's 401K and forgot about it.