Welcome to October, happy Halloween! Listen, I’m not a big fan of Halloween since I’m not big on sweets, however, I am a fond of the weather, and the beautiful leaves changing color.
I DIGRESS… back to some market news, what I’m buying, and beating the S&P some more. The beginning of September was a bit shacky with more tariff mumbo jumbo. We made a strong comeback in the last few trading weeks. All major indices are flirting or reached a new 52-week high. For the most part markets are doing well, not great since we’re not pushing numbers like the ones we hit in 2017, but certainly not just “good.” They’re doing WELL.
*clears throat* me on the other hand, I can’t bat an eye at my performance. It’s pretty darn good.
Okay, I’ll stop stroking my ego and my investments. It’s bad to get high off your own supply, I made some good calls, big whoop. I’ll face years where returns are flat or negative. I’ll always aggressively buy however and be unafraid and unashamed to tell you guys “yeah, I fucked up. This wasn’t what I had in mind.”
Lily from The Frugal Gene mentioned how it’s best to keep investing ideas to yourself, otherwise, it’s more so you trying to prove that you’re correct on the assets you pick. And the times you are correct, you become prideful (perhaps cocky?) and emotional in your investing. When there should never be any emotions in business. It’s not the case with my monthly series. I showcase my returns for credentials and for my audience to have an understanding behind my investing philosophy.
I digress some more… markets should push higher as we place our spotlight on earnings season. That’s right Q3 ends this month and companies are reporting earnings left and right. Then the occasional dip around December will happen as tax loss harvesting goes into effect and fund managers would like to take the holiday season off before working again come January.
Last month, September 2018
The stocks that made up majority of my portfolio were as follow: Visa, Cintas, Square, American Express, and Apple. Nothing changes going into October, but I’ve got some news for every company.
Marketwatch created an article that showcased the best and worst performing stocks on the Dow year to date. Visa is top 3. Nike takes first, followed by Microsoft in second. Third is Visa. (Apple is fourth, but we’ll talk about Apple in a bit.)
Uhhhh, nothing of interest happened to Visa last month. Carry on.
Cintas had a rough last week in September. Falling almost 5% after reporting earnings. Their numbers were great btw, they beat all estimates, the stock was just oversold. It happens, stocks fluctuate over any news, overall they go up over time.
Cintas is building a new facility in Delta Township, Michigan. The facility will operate as a laundry operation and is estimated to hire 60 workers.
Square has been flat for majority of the month, until some analyst threw out the word FAANG(S) (Facebook, Amazon, Apple, Netflix, Google, and should now include Square) in an article they wrote, and Square traders/shareholders went ape shit over it. I can see why however, to have a company be acknowledged as one of the tech conglomerates, that’s flattering. I’d def marry the analyst if they were to say I am amongst the top 5 biggest publicly traded companies in the U.S.
Furthermore, that same day, Square released a payroll app to help business owners with paying their employees (duh.) So we have good news coming from every direction for Square, needless to say, traders and investors… they lost their mind that they pushed the damn stock by almost 11% in a single trading day. Opening at $86 and closing ~$97.69.
Now analysts are pushing their price target to a $120 - $130 range after the tremendous upswing.
Jack Dorsey (CEO of Square) is pissing me off. He is selling his stake in Square for a quick buck and to me, it’s
Foolish since Square is easily disrupting traditional payment processors and has PLENTY of growth left, and so much potential to make plenty of billions in revenue. The share price can easily go to $200 in the next 3 years or so. Make Dorsey super wealthy.
It scares me since, he is the CEO, and is aware of what occurs within the business. When a CEO sells their shares, it just means they know an issue is occurring within their business, and would like to make as much money as possible to evade losing money when their share price falls. We’ll see what happens.
I hate fed rate hikes. Mostly because upon raising rates, credit card companies and banks take a hit that week. It would make a lot more sense that they would rise since it becomes more expensive to borrow money, and majority of their profits comes from interest rates on the credit lines and loans they lend out. But I understand as to why someone would sell banks and credit card companies as it becomes less attractive to borrow money.
American Express has a forex segment of their business that was probed by the FBI for shady practices. Smh AmEx get your shit together.
AmEx raised their dividend by 11% or $0.04 and pays $1.56 annual dividend.
Apple at the beginning of this month released a new line of iPhones and a series 4 watch.
Apple got into some legal troubles towards the end of the month, as Qualcomm is suing Apple for sharing their chip-making tech to Intel.