Here’s what I bought yesterday
Investing $2,500 | Round 3
Yesterday was the third purchasing round of the 2021 investment schedule. I’ll first cover the positions and then go through a bit of the thought process behind it.
Main Fund Purchases
#. Company / Stock Name (Ticker) - $ Amount | $ Cost Basis / Share
MarketAxess Holdings Inc. (MKTX) - $600 | $549.25
SVB Financial (SIVB) - $300 | $444.00
Target (TGT) - $300 | $181.00
Taiwan Semiconductor Manufacturing Company Limited (TSM) - $300 | $126.50
ProPetro Holding Corp. (PUMP) - $300 | $8.00
Sunoco LP (SUN) - $300 | $31.75
Residual Cash - $400
Some Qualitative Thoughts
It was an amazing day. Not only did I get a solid hit on all my limits orders at a reasonable price and not have to chase on cost but the market went up the rest of the day after I got in. It’s a great feeling to buy and see your investments immediately rise a few percent.
The big play today was MarketAxess for a full $600. I love the fundamentals on this stock and have had it on my radar for a while. It’s had a fairly weak start to the year but recently started turning back up and so it felt like the time was right to jump in. It appears to be the right play so far as it already went up +3.5% from where I bought it on the day. Good vibes all around on this one.
In my last buying round, I picked up only $300 in SIVB and TGT, which were stocks I had wanted to buy at the very beginning of the year but didn’t and they had both already risen a bunch in price from the start of the year! I said at the time I only wanted to do a half purchase in the hopes they might pull back some and I could pick up the second half on discount. Well, they both dropped the last two weeks and I was happy to fill the second half of the order at a nice discount to lower my overall average cost basis today.
The next three stocks, TSM, PUMP, and SUN all represent a big moment for the fund as they are the first purchases that are not part of the S&P 500! While it has been fun trying to beat the S&P 500 buying stocks only within the index, I think I’d be missing out by limiting myself to just those constituents.
TSM is a total beast of a company. It’s had a huge run up lately but I still think it’ll be a fine play long term as it’s such a critical player to so many customers. It’s also a really nice way to start getting some international exposure. That’s important for diversification but it hasn’t been so easy in practice with many international stocks underperforming U.S. stocks for a while now.
For PUMP and SUN, I am not a huge fan of the energy sector because I think oil has some long-term issues and also renewables are pretty stretched valuation wise at the moment but I did want to get a little exposure somehow. I felt like these two names had fundamentals that looked solid compared with peers and, at the same time, get the portfolio a little bit of small-cap exposure.
Finally, I kept the largest cash position of my three buying rounds so far at $400. To be honest, I did not expect the market to do so well today and have been somewhat expecting at least a small broad-market pullback. We will see if this big cash position gets put to good use later buying at discount or if the market continues to go up without much of a dip like it has been for basically ten months straight now.
Overall, I honestly couldn’t be happier with how today went and feel really confident about the additions to the portfolio. I’m excited to see what happens over the next two weeks and am looking forward to thinking about my next plays in the context of all the potential new market developments.
If you like (or don’t like) any of the names on here or think I’m missing out on some potential good picks elsewhere, feel free to let me know in the comments or through email. I’m always on the lookout for good new ideas!