Selling one position today
“Widespread fear is your friend as an investor because it serves up bargain purchases"
- Warren Buffett
NOTICE
I am online and available to chat today. I am often available to chat for the first 15 minutes after a post goes live. Use the Chat feature in the bottom right corner of your screen.
The Portfolio
The portfolio is down over -12% YTD this morning, improving from a position where we were down roughly -20%.
Even with todays rally, our benchmark index, the S&P 500 is down -24.82% 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
Today I'm taking advantage of the exceptional rally to exit one of our positions. Today I sold SolarEdge at $84.15/share so that we could have that cash on hand to do more buying. I sold SEDG because there too much overlap with our investment in Enphase, a company where I have more conviction with respect to growth.
SOLD 10 SEDG @ $84.15
What's Happening
The markets are rallying on news that an aid package is coming soon to support the nation during the Coronavirus crisis. This rally is likely to be brief as there are traders who will have made profits today that will get captured today or tomorrow. There are companies that rallied today that frankly don't deserve to rally because they are basically broken businesses. I don't mind buying a broken stock, but a broken business is a different problem.
The Plague Trade
First quarter earnings season is just around the corner and I can't imagine that anyone is going to have much good news to report. I would expect to see lower prices again on companies we like. The current crisis could come and go in waves, create more opportunities to buy and to sell. Our discipline is to stay focused on what we can control, and invest in companies with long term futures, not fads that will benefit from the players in the plague trade. I will not be buying mask companies, respirator companies or chasing biotechs with 'potential' vaccines.
What Do You Want?
Have an idea for a topic you'd like me to cover, please email me or start a conversation at the bottom of this post.
"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.
