OH MAN, WHAT A MONTH. THE S&P FINALLY ENDED THE MONTH ON A NEGATIVE NOTE AND HASN'T HAD A DOWN MONTH SINCE NOVEMBER OF 2016. Down -2.16%. Peer indexes also faced the same consequences. The Dow was down -2.44% and the NASDAQ almost broke even but was short, it finished February -0.38%
And yes, this was, in fact, a market correction. Equities fell below 10% from their all-time highs. Congratulations, you survived the first market correction we've seen in ages. It wasn't that bad. No, you didn't lose any money. If you bought any good ass stocks while the market was furiously selling off, then you did a good job. If you sold off any good ass stocks while the sell-off was happening simply because you were scared, I have a question for you. Why? :( that genuinely makes me sad. We're recovering from the correction as we speak.
Jimmy's strategy for purchasing equities with little to no cash
So, I had a feeling some investors were low on cash and had used up most of the cash they had on the sidelines to purchase some good ass stocks awaiting a pullback back in 2017. You know, that one strange year where EVERYTHING went up and we didn't end any month on a negative note. I get it, investors saw equities getting expensive with no pullback at all, so they just stepped in. Finally, when the pullback did happen, investors had no cash, and neither did I. So what did I do? I made sure to sell some of the equities that have gone up tremendously to reallocate the capital. One of those stocks was Square (NYSE: SQ)
I mean, cmon, it's almost disgusting obtaining a 68% gain in the course of 6 months. I don't normally sell equities that I've held less than a year, just to simply avoid paying higher taxes. But anything that goes up that much in such little time deserves to be sold, asap. That cash had to be split amongst a few other stocks PLEASE. I ended up purchasing Waste Management, adding onto a very small posistion I owned, not really earth-shattering, nor do I think it's a winner for this year per se. Still, don't mind holding onto this company.
Last month, February 2018
My 4 biggest positions last month were Cintas, American Express, Visa, Coke. This month, we made a few changes.
MAN I LOVE CINTAS. I say this now and I'll say this again, Cintas is a NEED for businesses of all sizes. During a recession, you still need uniforms, first aid kits, floor mats, and cleaning supplies. It has a great financial statement and balance sheet with growing revenues and profits. Cintas is making penetration in foreign markets and the developing world. This is a HUGE hold for the next 20 years.
What has Cintas been up to? Well, they recently created and launched an app called "Got to go" essentially, the app allows you to find restrooms in your vicinity and have people rate the cleanliness of the restroom.
Cintas has been looking very pricey, I have a hunch (and a prayer) that this stock will soon go for a split.
I love credit card companies, I also enjoy companies that keep up with inflation without even trying, and lastly, I like companies that provide travel services. American Express is all of the above, plus some. A super cyclical business, however, since who the hell travels during a recession?
What has Amex been up to? It's suing the Weinstein Co. for $1.4 million in unpaid charges. The Weinstein Co. is currently struggling while attempting to stay out of bankruptcy, finding a parent company to purchase them or save them from bankruptcy, and still dealing with and recovering from their negative image left by Harvey Weinstein. Amex suing them is possibly the cherry on top for the shit show that is The Weinstein Company.
The Supreme court is a bit uneasy with American Express's merchant fee policy. The policy forbids merchants and businesses from encouraging their customers' the use of other credit card companies with lower fees that are not American Express. Using credit card companies that have lower transaction fees, according to the judges, means that the business itself can sell their product or services at cheaper prices. Whereas, if they were to accept Amex cards, where transaction fees are much higher, the business is to raise the price of their product or service in order to break even or make a profit.
Apple, it's not a tech company, whatever you may say, I will never ever view Apple as a tech company. I will view it as a consumer goods company. No matter how expensive the following iPhones, Macs, iPads, etc. will be the decades that follow, you'll always buy it. You're so hooked on their products. Apple has such a strong brand, similar to Coca-Cola. Nonetheless, I was blessed to receive my tax refund while the market was in full sell-off mode. Rather than buying unnecessary items, I placed that refund to work by purchasing shares of Apple.
What has Apple been up to? There are so many news outlets reporting on Apple, it's exhausting keeping up with every last thing the company does. Nonetheless, here are a few eye-catching plans Apple has in mind.
- Apple plans to release a new Macbook air at a cheaper price. Possibly around June.
- Smartwatches are finally being "cool" or "trendy" and are being purchased by consumers
This company is so boring, that it makes for such a great investment since it's just there. Collecting money every time you swipe your Visa card.
What has Visa been up to? It acquired "Fraedom" a payment solution for businesses and banks. It tracks all expenses and cash flow/income. Almost like an accountant.
Visa is teaming up with a few tech companies to create contactless payments in public transportation. The tech companies are all located in different countries.
Here are my anticipated dividend amount for this year.
Here is my portfolio YTD. I dipped in February, but I also recovered in February. As always, I am the green line and the S&P is the blue line. Up by 3.4% YTD