We Beat The Market Again!
“Earn as much as you can.
Save as much as you can.
Invest as much as you can.
Give as much as you can"
- John Wesley
The Portfolio
That's 4-years in a row!
The portfolio closed out 2019 up +29.14%. Our goal is to beat the market using the S&P 500 as our benchmarked. We had a thin win this year, but a win none the less. This is the first year I've included dividends in the results. In previous years I just ignored dividends altogether, they weren't included in results. The 2019 portfolio is now memorialized in the archive.
Our benchmark index, the S&P 500 is up +28.86% YTD.
If you're an investor looking for diversification and growth, and you'd like to know more about the way I build a portfolio; please feel free to email me. clay@claybaker.com
The 2020 Portfolio
Today's SELLs
Vanguard Total Stock Market Index ETF (VTI): I sold a few shares to rebalance this index fund.
SOLD 14 @ about $163
SPDR Gold Shares (GLD): I sold a few shares to rebalance our gold position.
SOLD 11 @ about $143
Today's BUYs
Northrop Grumman (NOC): Bought 7 @ $344
This is an existing holding that I'd like to keep adding to at lower prices. My add today was above our cost basis (I rarely do that), but it was a good buy none the less.
Uber Technologies (UBER): Bought 35 @ $29
This is a new holding I added at what is arguably one of the most troubled times as Uber battles the state of California over categorizing its drivers as employee's. I think the headwinds are priced in. I'm also betting on other parts of the Uber business.
Biogen (BIIB): Bought 4 @ $293
This is a new holding betting on the approval of Biogen's Alzheimer's drug.
Chipotle Mexican Grill (CMG): Bought 2 @ $834
This is a new holding betting on the continued opportunities in the existing day-parts for lunch and dinner, drive through and mobile ordering technology. I have no expectation that Chipotle will add breakfast.
Boeing (BA): Bought 3 @ $324
This is a new holding betting on the strength of Boeing within a duopoly with Airbus. Boeing is more than a commercial aircraft company, it's also in defense and space technology. Once the overhang of the 737 Max is resolved Boeing can go much higher.
Facebook (FB): Bought 5 @ $204
This is a new holding betting on the continued strength of Facebooks advertising business. The company faces significant regulatory headwinds that I think are mostly priced in. Should Facebook be broken up I'm thinking the individual businesses are worth more on their own.
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcycles."
- Clay Baker
I hope that 2019 was a happy, healthy and prosperous year for all my readers. I'm very optimistic about 2020 and beyond as the U.S economy continues to deliver data that confirms strength, even in the face of mounting headwinds. One of my first predictions for 2020 will be that the S&P 500 reaches 3500-3700, I'll write a specific post on how I get to those levels at a later date.
A review of Keep Me Honest will be coming soon.
Stay Invested,
Clay Baker
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Keep Me Honest
S&P 500 declines to 2,350 or more (1-3-2019)
Healthcare and Biotech sectors outperform (1-3-2019)
S&P reaches 3,000 by year end (1-11-2019)
CSCO reaches $60/share (1-18-2019)
VEEV reaches $145/share (2-14-2019) (achieved $145.23 on 5-10-2019)
CVS reaches $91.50 (2-27-2019)
Bull market takes another leg up (4-7-2019)
The Fed will lower rates 1-2 times (5-13-2019)
Clay's Rules
Rule #1: Don't lose money
Rule #3: Portfolios go to zero, markets don't, Stay Invested
Rule #4: When a good stock you own drops 10% below your cost basis, add shares
Rule #5: Bull markets aren't sustained without the Transports
Rule #6: When Forward P/E is lower than TTM P/E, expect earnings to increase
Rule #7: When an investment bank sells below book value, buy it
Rule #8: Tips are for waiters. Do your own homework.
Rule #9: Don't sell a stock because you're bored with it. Do your own homework.
Disclosure: I am personally invested long in some or all of these stocks or funds that appear in the Stay Invested portfolio and may purchase or sell shares within the next 72 hours. I am also invested in other stocks and funds that do not appear in the Stay Invested portfolio but may be mentioned or related to this article. It is not my intention to advise or encourage the purchase or sale of any security. I am invested long in these securities mentioned in this post:
HD, AMRN, BSTC, CVS, CSCO, VEEV, STZ, AMZN, NVDA, BCRX, GS, BDSI, VEEV, VTI, GLD, HD, AWR, XLNX, MRVL, NBRV
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.
