Okay.... uhhhh... wow... we’re still in the correction... the start of November seemed promising, trading sessions were up for the most part, that went down hill promptly afterwards, however, we didn’t bottom past the October bottom, suddenly when we hit the bottom, we just rallied until the end of November. Hopefully this momentum continues on into December.
Needless to say, I’m out here buying, we added Starbucks and Nike onto the portfolio, I felt it was appropriate since it diversified me a bit more into the consumer sector. I want to stray away from Financials since it makes up like 50% of my entire portfolio. Added a bit more Cintas, and as usual, we sold Square for the extra capital to make these purchases since it’s the only stock in my portfolio that has gone up 100+% in the past year, I also felt it was time to trim off Square as well since right now, it seems a bit risky what with the CFO Sarah Friar leaving and how she played a major role in the company, it’s not risk I’m willing to take, I still have faith in the company, but hiring another CFO as talented and as smart as Friar is going to be a challenge.
Last month: November
We held the following in this order
Everything somewhat shifted the moment markets went down, here is this months line up.
still in the #1 spot, we have Visa
They announced their fiscal year results, and wow, I am impressed. Their profit margin (percentage of money they keep after taxes, expenses, etc.) is at 49.something% which is pretty damn impressive. Banks usually have a profit margin of 20 - 30% and profit margins for Visa competitors (Mastercard, American Express, and Discover) are anywhere from 11% - 35%
The only explanation for Visas large profits and aggressive growth is simple, they invest in other companies and take large stakes in fintech or any businesses that help support Visa. Recently, they took a stake in a payment company in India.
During the sell off, Visa for the most part has remained sturdy and has not flinched much.
Of course if Cintas stock is getting hammered I’ll buy more shares and push it back to my #2 slot. It was oversold in October and remained flat in November.
You know another stock that was seriously oversold for literally no reason? Apple, we added a few more shares onto Apple.
Like Visa, American Express was not affected by the sell off, but rather rose during the past month hitting a fresh 52-week high. I genuinely think most credit card companies and payment processing companies are not being affected by the sell since investors know they thrive well and are ultimate winners during the holiday season.
Another big loser? Monster beverage, who is at the mercy of The Coca-cola company who is planning to release their line of energy drinks. Which, goes against the agreement they made between the two companies when Coke purchased a 15% stake from Monster beverage. Pushing Monster stock into oversold territory.
Since we’re making purchases left and right, my monthly dividends are coming along pretty well. My goal for having a monthly dividend has been reached. Up next, receiving a dividend of $10 every month. I have until 2020 :)
We’re up 10% since the end of November
Portfolio versus S&P YTD
Is Jimmy still beating the market? I mean, that’s a silly question, of course he is, he always does (watch me have a trash year in 2019 for being cocky.)