Here's what I bought yesterday
Investing $2,500 | Round 4
Yesterday was the fourth 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
Visa Inc. (V) - $600 | $209.00
The Home Depot, Inc. (HD) - $450 | $276.50
Netflix, Inc. (NFLX) - $300 | $560.00
Innoviva, Inc. (INVA) - $300 | $12.05
Steelcase Inc. (SCS) - $300 | $13.65
Electronic Arts Inc. (EA) - $300 | $147.65
Qudian Inc. (QD) - $150 | $3.60
Residual Cash - $100
Some Qualitative Thoughts
Today wasn’t as fun as my last investment round, where everything I bought went up after I purchased it. In fact, everything I bought today went down! Not as fun.
Visa (V) - I picked up Visa because I wanted a little more exposure to the financial sector and wanted something other than a bank. Paypal was another consideration but I’ve already got a lot of “tech” and valuation is a concern - might regret that. I like Visa more than it’s competitors (currently).
Home Depot (HD) - It might seem strange to buy Home Depot now, when the assumption is that society will open back up and people will stop spending as much on their homes. I’m not so sure. A lot of homes have just been purchased and a lot of those purchasers are first time homebuyers and I doubt all their projects are done just yet. Home maintenance and improvement isn’t going anywhere. I think Home Depot stays solid. I like their numbers more than Lowe’s but it’s close. I could have gone either way.
Netflix (NFLX) - I wanted some communication exposure and, with the exception of a few outstanding names, I am not a fan of a lot of the sector constituents. The ones I do like feel stretched at the moment but Netflix just felt right here. Competition is heating up but I think the appetite for streaming content is essentially insatiable and won’t come at the expense of cancelled Netflix subscriptions. I don’t think binge watching dies with a post-COVID world and I think a few solid hits will keep people paying.
Innoviva (INVA) - I’ll admit this one is kind of weird. I wanted more healthcare exposure so I went exploring for something off the beaten path with sound fundamentals. Hoping for diversification and correlation benefits but not expecting crazy returns. I’m happy with this play but doubt I’ll be adding to it or thinking about it maybe ever again.
Steelcase (SCS) - It may not be exciting but Steelcase makes my favorite office chairs and it’s not even close. I like the product. I like the numbers. I don’t expect much but feel so strongly about their products that it’s more of a “buy what you like” thing.
Electronic Arts (EA) - I like a lot of their catalog and feel like their fundamentals are comparable to Activision Blizzard but without the seemingly constant PR nightmares. Another communication play. Who doesn’t like games?
Qudian (QD) - A real “what exactly is this?” kind of stock. I tried to hop into this and FINV but FINV ran wild and just missed my order price before it skyrocketed 25% (sigh). I was looking for a play like Visa but to capture some additional international and small-cap exposure and this had solid fundamentals. It’s already up 165% this year so fingers crossed I’m not buying the top. Took a small position here and will add if it drops because I like the underlying. This play is a bit outside my comfort zone and I am also concerned the volatility presents a risk versus my investment goals but I’m willing to take the chance.
Overall, I’m honestly feeling the least sure about this group compared to my other three rounds. Falling prices today didn’t help. But, these picks were the result of a lot of thinking and research. I feel that these are the best choices out of the extensive list of potentials I drafted. I’m skeptical of the market right now but I can’t risk an excessive cash position and run behind the S&P, so I am really just hoping these names give me at minimum breakeven performance. That probably doesn’t sound too convincing but the last thing I want to do is pretend to be overconfident. Despite reservations, what I can say is that I wouldn’t do anything different based on what I’ve spent a lot of time thinking about. That means, it’s on to thinking about the next round!
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!
Links
Yesterday’s Post | Most Popular Posts | All Historical Posts | Contact
Portfolios
Main Portfolio | Wild Stuff | Shiny Stuff | Safe Stuff | Big Stuff | Random Stuff
Live Charts
Tracking Portfolio Performance | “Wild Stuff” Constituents | “Shiny Stuff” Constituents | “Safe Stuff” Constituents
My only concern with EA is that its main revenue source is at risk in the european markets.