Buying Two Stocks Today
"Be fearful when others are greedy,
and greedy when others are fearful.”
- Warren Buffett
The Portfolio
The portfolio is UP +22.50% YTD. (as I'm writing)
Our benchmark, the S&P 500 is up about 0.24% YTD.
Buying more AMD
Today I got an opportunity to add to our AMD position, and since I made some sales and built up some cash we were ready. Normally I look for 5% to 10% declines below our cost basis before I add shares but there is still a great deal of uncertainty in the market and I'm uncertain if AMD shares will decline as much as I would like. My approach is going to be to add to this position carefully.
BUY 5 shares of AMD @ $75.19
Starting a Position in Microsoft (MSFT)
Microsoft is now over 14% below its September 2nd high of $231.65. This morning the stock is down about 1% even though the company has announced an acquisition of Bethesda Softworks. Microsoft Corp. said today it plans to acquire ZeniMax Media Inc., owner of video-game publisher Bethesda Softworks, for $7.5 billion in cash, marking its biggest video game purchase ever.
Bethesda is the publisher of The Elder Scrolls, Doom and Fallout and also has at least two titles slated for debut next year. ZeniMax, one of the biggest privately-held game companies with 2,300 employees worldwide, also owns several other studios across the globe, giving Microsoft’s Xbox business a much-needed infusion of titles and game developers.
“Bethesda’s games have always had a special place on Xbox and in the hearts of millions of gamers around the world,” “Our teams have a close and storied history working together.”
- Xbox chief Phil Spencer
Recently however, Bethesda has been working more tightly with Sony. Bethesda had previously agreed to debut two of its upcoming games, Deathloop and Ghostwire: Tokyo, on Sony’s new PlayStation rather than Xbox. Both games were announced as “timed console exclusives,” meaning that they would be restricted to the PlayStation 5 for a fixed period of time before coming to Xbox. It remains to be seen how this acquisition will affect that deal.
Microsoft expects the deal to close in the second half of its fiscal year 2021, which ends June 30, and to have “minimal” impact on its adjusted operating income for the current and next fiscal years. This last point is likely what's holding shares down, but as long term investors it indicates an opportunity to start a position in a company that has been selling at lofty prices for too long.
BUY 5 shares of MSFT @ $196.50
I'm Riding To Save Lives
The Distinguished Gentleman’s Ride And Movember Are Working Together To Tackle Men’s Health Issues.
Please join me, thousands of other riders along with The Movember Foundation Partners; Red Bull, Triumph Motorcycles, Elf, Hedon, Belstaf, SKRAM, Bridgestone and Pipeburn.
"This year, tackling suicide prevention is more important than ever.
Shelter in place, lack of work and an uncertain future are a worse case scenario for those dealing with depression"
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At The Distinguished Gentleman's Ride, we ride for a purpose
Our focus is on gentlemen who have been dealt a tough hand in life. In particular, we raise funds for cutting-edge research into prostate cancer, and mental health and suicide prevention programs, as part of our mission to support men’s health globally. These funds are invested by our partner, Movember, which is the worlds largest men’s health organisation.
Suicide Prevention | Men's Mental Health
3 out of 4 suicides are men
510,000 men die from suicide globally each year.
One man every minute stops believing in the future. This has to change.
The causes of suicide are complex. There’s no single reason why men take their own lives, but we do know that by improving overall mental health we can reduce the risk of suicide. We need to address untreated mental health conditions among men.
Too many men are toughing it out and struggling alone. There’s no shame in checking in your own mental wellbeing, and those close to around you. Our friends over at Movember have produced some handy guides, that might help take the sting out of broaching the subject.
Together, The Distinguished Gentleman’s Ride and Movember are breaking down these barriers that exist in men, but we need your help.
Prostate Cancer
Prostate cancer is the second most commonly diagnosed cancer in men. Movember is the largest funder of prostate cancer programs in the world.
What is prostate cancer?
The prostate is a gland located immediately below the bladder, in front of the bowels. It produces fluid that protects and enriches sperm. Prostate cancer occurs when some of the cells in the prostate reproduce far more rapidly than normal, resulting in a tumour. If left untreated, prostate cancer cells may eventually spread from the prostate and invade distant parts of the body, particularly the lymph nodes and bones, producing secondary tumours in a process known as metastasis.
One of the most worrying aspects of the disease is that most prostate cancers develop without men experiencing any symptoms in the early stages.
What are the risk factors for prostate cancer?
Prostate cancer only affects men, as women do not have a prostate gland. Risk factors in developing the disease include:
Age: The older a man, the more likely he is to be diagnosed with prostate cancer. If you’re 50 or over, chat with your doctor about PSA testing.
Family History: A man with a father or brother who developed prostate cancer is twice as likely to develop the disease. If you’re 45 or over and prostate cancer is in your family, you should strike up the conversation about PSA testing with your doctor.
Ethnicity: Prostate cancer has an increased occurrence in men of African and Afro-Caribbean descent. If you’re 45 or over, get in contact with your doctor about PSA testing.
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"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).
Worst Case: S&P 500 decline further to around 2,100 - 2,150 (3-28-2020).
Middle Case: S&P 500 level out around 2,650 - 2,700 (3-28-2020).
Best Case: YE S&P 500 eventually rise to around 3,000 - 3,200 (3-28-2020).
Market bottomed March 23, 2020 at S&P 500 2,237.40 (4-17-2020).
Clay's Rules
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.
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:
AMD
I am invested short in these securities mentioned in this post: GSX
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.