Starting to Leg Into Stocks
“Widespread fear is your friend as an investor because it serves up bargain purchases"
- Warren Buffett
The Portfolio
The portfolio is down over -15% YTD this morning, and over 17% after making todays buys.
Our benchmark index, the S&P 500 is down over -26% YTD.
If you're interested in the stock market, are looking for diversification or growth please feel free to connect me. I'm always available to talk, maybe provide some new ideas or to present to your group. clay@claybaker.com
What I'm doing today
The S&P 500 has continued down, with a few notable rallies in individual names. In contrast our blog portfolio, has never declined as much as the S&P and is recovering a bit today. Make no mistake, I'm not impressed by being down almost 20%. However, the purpose of a long term portfolio like ours is to soften the blows from major market declines and to fully participate in the rallies. For the 5th year in a row we've accomplished that goal.
It's time to leg back into stocks
The overall valuation of the stock market appears to have reverted to its mean, and because of over corrections to the down side and upside, I would assume there is more room for the market to decline into oversold territory. Our strategy must be to buy quality, carefully limit enthusiasm for high risk stocks, and leg into stocks in small bites.
What I'm doing today
I have 10 names in the portfolio I want to buy today, but don't have that much cash. I'll use some of our cash on what I'll call priorities and look to raise cash from other names when I can. For those holding more cash, I would like to have bought Amarin, Boeing, Coherus, Enphase, Facebook, Generac, Goldman Sachs, Home Depot, Solar Edge and Uber.
What I bought today:
Bought 100 AMRN @ $11
Bought 50 CHRS @ $13
Bought 30 ENPH @ $27
Bought 10 GNRC @ $86
Bought 10 UBER @ $21
I've added today's call to the Keep Me Honest List below
Today is a good time to leg into stocks. We'll know by years end if this was the right call or not.
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcycles."
- Clay Baker
Stay Invested,
Clay Baker
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Keep Me Honest 2020
Today is a good time to carefully leg into stocks again (3-20-2020).
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, ENPH
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.
