Actively Buying Today
“Widespread fear is your friend as an investor because it serves up bargain purchases"
- Warren Buffett
The Portfolio
The portfolio is up around +5.0% this year as I'm writing.
Our benchmark index, the S&P 500 is down -2.07% 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's Happening?
Fears over corona virus have fully infected the markets in terms of investor psychology. The human cost from this virus cannot be overstated and we all need to reflect on the act that there are people, with names and families who are suffering. This isn't just numbers on a page, it's a very real human tragedy.
While I think it's important to have a pragmatic view of what the worst case scenario can be, we have to keep our investment discipline front of brain and remember what it is we're doing here. We are invested for the long term, not this week, not this quarter. While it is not a matter of if, but when corona virus covid-19 spreads in the U.S.; our investment strategy will not change to either take advantage of or run in fear from this latest pandemic. I'm not a doctor or an epidemiologist, so I can't comment on Covid-19 with any authority. But I can process the information and data from the CDC and in particular Dr Anthony Fauci https://www.niaid.nih.gov/about/director. You'll see Dr. Fauci in the news a lot as we work through this challenge.
While I see many investors getting out of stocks and holding cash, I've taken the opposite approach and have put nearly all of the portfolios cash to work. I plan to do a little selling to raise more cash that will be invested in stocks.
Adding to Amarin (AMRN)
Amarin is down significantly, so I'm taking the opportunity to add to our position.
Adding to Facebook (FB)
Facebook has declined below $200, so I picked up some shares at our buy around price. While our position in Facebook is small, I did triple our position from 5 shares to 15. If we had more cash available I would have bought a lot more.
Started a new position in Generac (GNRC)
Alternative power maker Generac has been on my radar for a long time, but the stock just would't pull back. Even the corona virus outbreak wasn't slowing it down. I finally got a shot at the stock today when my limit order at $108 was triggered, $1 below my buy around price. I expect to hold Generac for a long time and will likely keep it as a core holding in future years. I'll be adding at any opportunity.
Today's BUYs
Amarin (AMRN): Bought 100 shares @ $16
This is an add to an existing holding.
We now hold 600 shares @ $18.33/share
Facebook (FB): Bought 10 shares @ $197
This is an add to an existing holding.
We now hold 15 shares @ $199.33/share
Generac (GNRC): Bought 50 shares @ $108
This is a new position
We now hold 50 shares @ $108/share
"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 2019
S&P 500 declines to 2,350 or more (1-3-2019)
Healthcare and Biotech sectors outperform (1-3-2019)
S&P reaches 3,000 by year end (1-11-2019)
CSCO reaches $60/share (1-18-2019)
VEEV reaches $145/share (2-14-2019) (achieved $145.23 on 5-10-2019)
CVS reaches $91.50 (2-27-2019)
Bull market takes another leg up (4-7-2019)
The Fed will lower rates 1-2 times (5-13-2019)
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.
