I'm Buying Today
“Never let a good crisis go to waste.”
- Sir Winston Churchill
The Portfolio Performance
The portfolio is up 1.54% YTD
Our benchmark, the S&P 500 is up +11.50% YTD
I'm seeing several good buys in the Stay Invested portfolio. Only time will tell if I've waited long enough for the very best prices. Broadly speaking, I think the second half of this year will be very good for stocks, so I'm looking to make some buys and reduce the cash drag that we have right now. Below are the stocks I'm buying today according to the allocations in the Stay Invested portfolio. For any one following along, you'll need to adjust quantities according to your portfolio.
Kensho Clean Energy Fund (CNRG)
The CNRG is an AI managed fund that focuses on all forms of clean energy and companies that use or develop wind, solar, hydrogen, battery technology and more. The current price is finding support at the 200-day moving average. I'm comfortable making a bigger buy at this level and filling out our position. I could have bought at slightly lower prices, but I wanted to wait for better confirmation that the stock is returning to an uptrend.
Advanced Micro Devices (AMD)
I think this is one of the two best semi-conductor companies in the U.S., the other being Nvidia. AMD chips are in every important device, but most of all I like the progress they are making getting AMD chips into data centers. I expect to hold this stock for a long time as I don't see any reason for my thesis on this company to break down.
ARK Innovation ETF (ARKK)
The ARK Innovation fund invests in the most disruptive technology trends that are unfolding over the next 5 years. This is an actively managed fund, the flagship fund of Cathy Wood at ARK Invest. The funds top positions are Tesla, Square, Teledoc, Roku, Zillow, Zoom Video, Spotify, Shopify, Baidu and Twillio. The stock is trading below its 200-day moving average and appears to me to have bottomed. As these companies and all the others in the fund have turned in good earnings for Q1 we have better clarity going forward. This will also be a long term holding for the portfolio.
ARK Genomic Revolution ETF (ARKG)
The ARK Genomic Revolution ETF invests in companies that are transforming healthcare through the latest advances in genomic research and the most advanced methods of healthcare delivery. The fund includes positions in Teledoc, Exact Sciences, Regeneron, Pacific Biosciences, Twist Bioscience, Novartis, Vertex, CareDx, Roche and Takeda. Buying these companies individually and managing all the positions in this fund wouldn't be possible for our portfolio, so I find this fund the best way to invest in healthcare and biotechnology.
Lam Research (LRCX)
This will be a new position in the portfolio. Instead of playing individual chip companies I want to own the picks and shovels that all the other chip companies rely on, that's Lam Research. Lam Research designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits worldwide. LRCX is in my opinion the most important manufacturer of semi-conductor fabrication equipment worldwide. With the current global shortage of semis, I think LRCX has a lot of room to run higher.
BUY CNRG 662 shares @ $98.66
BUY AMD 146 shares @ $77.74
BUY ARKK 362 shares @ $109.93
BUY ARKG 303 shares @ $79.27
BUY LRCX 60 shares @ $645.13
"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 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, AMRN, AMZN, AAPL, ARKK, ARKG, CNRG, ENPH, FB, GNRC, GBTC, GLD, HRTX, HD, IPOD, MSFT, NVDA, PSTH, TWLO, VBIV
I am invested short in these securities mentioned in this post:
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.