Here's what I bought yesterday

Investing $2,500 | Round 8

Apr 16, 2021

Yesterday was the eighth 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

Arch Capital Group Ltd. (ACGL) - $150 | $40.25
D.R. Horton Inc. (DHI) - $150 | $93.00
Espey Mfg. & Electronics Corp. (ESP) - $150 | $16.00
Kirkland Lake Gold Ltd. (KL) - $150 | $37.25
The Progressive Corporation (PGR) - $150 | $100.00
Universal Health Services, Inc. (UHS) - $150 | $137.25
Residual Cash - $1600

Some Qualitative Thoughts

It’s crazy to think that I’ve already finished a third of the investment rounds for 2021! The year has had a lot of fascinating storylines so far and I feel like I’ve done a decent job navigating them. That being said, it’s easy to invest when the market is going up.

Throughout the year, the biggest investment has been no investment. Each round I’ve continued to build my cash position. And, this round was no different, with $1600 stored in cash.

Now, it might seem like I’m trying to time the market here. But, really, it’s more of a strategic build-up of dry powder while I continue to search for really good investment ideas. It’s possible that some of these investment opportunities present themselves during a market pullback. Or, maybe not! It’s certainly possible I get conviction for an idea as the market continues to rally.

The drawback to this approach is the opportunity cost of not being invested when the market is rising. So, I’m trailing the S&P a little bit. The only way to make up that ground is to hope the market dips or to have a really really good investment idea that beats the market significantly. So, we shall see what happens!

For my actual investments, I increased my position in six names where I’ve seen positive fundamental developments. I liked these companies before and I like them even more now.

I actually planned on adding two new companies to the portfolio but with the market rising today the buy orders didn’t quite hit and I didn’t feel like chasing on price. So, they’ll continue to sit on the watchlist and I’ll see if I still really want them come two weeks from now!

As always, I’m looking forward to the next two weeks to see what new developments are in store for the market. So, until the next round, best of luck investing!