Buying A SPAC
“Never let a good crisis go to waste.”
- Sir Winston Churchill
The Portfolio Performance
The portfolio is up 2.42% YTD
Our benchmark, the S&P 500 is up +12.20% YTD
There's a lot to like in the market right now, but I'm going to wait until after the week end to do a lot more buying. Today I have one name I like that's already in the portfolio, Pershing Tontine, a SPAC initiated by Bill Ackman.
Pershing Square Tontine Holdings (PSTH)
Pershing Square Tontine Holdings, Ltd. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. This is essentially private equity money that is investing in management, specifically Bill Ackman's ability to close on a great business. While there is plenty of enthusiasm about what business Ackman may merge with I'm choosing not to speculate. As we enter the second half of this year I'd just like to own a full position around $25/share.
BUY PSTH 1,122 shares @ $25.50
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcycles."
- Clay Baker
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Keep Me Honest 2021
The S&P 500 will achieve year-end earnings of $170-$175 (1-1-2021).
We are likely to have a significant pull-back during the 1st quarter, about 5%-10% (1-1-2021).
Stocking picking will outperform algorithmic trading again as it did in 2020 (1-1-2021).
Rule #1: Don't lose money
Rule #2: See Rule #1
Rule #3: Portfolios go to zero, markets don't, Stay Invested
Rule #4: When good stocks you own drop 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.
RULE #10: Being early and being late is the same as being wrong...move on.
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