Here's what I bought yesterday
Investing $2,500 | Round 5
Yesterday was the fifth 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
Qualys, Inc. (QLYS) - $300 | $98.00
Alibaba Group Holding Limited (BABA) - $250 | $241.25
Emergent BioSolutions Inc. (EBS) - $250 | $99.00
O'Reilly Automotive, Inc. (ORLY) - $250 | $453.50
Salesforce.com, Inc. (CRM) - $250 | $217.00
SAP SE (SAP) - $250 | $124.00
The Progressive Corporation (PGR) - $250 | $86.99
Universal Health Services, Inc. (UHS) - $250 | $126.46
Kirkland Lake Gold Ltd. (KL) - $100 | $33.25
iShares 20+ Year Treasury Bond ETF (TLT) - $50 | $140.99
iShares Gold Trust (IAU) - $50 | $16.55
Residual Cash - $250
Some Qualitative Thoughts
This was my broadest investment round by far, with over eleven different investments. There are two main reasons for this. The first is, while I like all of these names, I’ve been putting more priority on lower purchasing rounds to have better flexibility to purchase more later on without creating too much exposure in a single stock. For example, with SIVB, I bought $300 and then another $300 when it dropped in price and now it’s one of the best performers! If I had done $600 all at once, I would’ve been pretty much locked in unless I was willing to increase my exposure significantly.
The second reason is that, although I put a lot of thought and research into these picks, it’s really easy to screw things up and pick the wrong thing at the wrong time. The perfect example here was my split investment in ProPetro (PUMP) and Sunoco (SUN). At the time, I wanted $600 toward Energy and so I split the buy 50 / 50 between these two stocks. Sunoco has been meh. ProPetro is up 50% in a month! I liked both stocks at the time and could’ve gone with a full investment either way. Sure, if I put everything into PUMP I’d be doing great but I could’ve easily been all in on Sunoco. Sometimes it’s good to spread your bets. So, I did a lot of that here.
In general, I focused on finding the best fundamentals at good prices. Right now, a lot of these stocks have taken a recent hit or are off highs. In terms of sector exposure, there were three in technology (QLYS, CRM, SAP), two in healthcare (EBS, UHS), two in consumer cyclical (ORLY, BABA), one in financial (PGR), and one in basic materials (KL). I also couldn’t help but grab a little more gold and long-term bond exposure given the continued slide in each. I had another financial I was going to pick up but the price got away from me as the market rallied and I decided to wait on the buy.
Overall, I’m much happier with this round as opposed to the last. It certainly helps when everything goes up right after purchase! I’m definitely looking forward to see what happens next in the markets. As always, drop me a note if you have any thoughts, ideas, or (ideally constructive) criticisms!
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