Portfolio Update: Stock Performance After a Horrible Month

Charging Bull

Disclaimer: If you buy or sell stocks based on what I say, you do so at your own risk.  This analysis is my own opionion based on my own research.  My investment strategy is to buy and hold, not trade regularly.

WMT – Walmart was my first stock purchase.  It has risen and fallen with the market, but it is still a slight gain for me.  In addition, the dividend, which currently yields just over 2%, makes this solid company a better investment than any bank savings account I know of.  I drove by the first store and headquarters last weekend and was happy to see the great test stores in Northwest Arkansas.  I think this company will continue to perform well internationally and grow slowly in the United States.

GE – I bought GE because of its long history of solid performance.  No matter what happens, I doubt this company will suffer very much.  I took a big loss on this in the big market drop of 2008, but it has come back to a slight gain.  It also pays a 2.45% dividend.

HD – Home Depot was a good buy.  I am up 25% on this investment and plan to keep holding it.  With a weak economy, Home Depot stores can attract more do-it-yourself people that might hire a contractor otherwise.  As the economy rises, I expect sales to increase as well.  HD pays a 2.85% dividend.

WWE – I admit that I am a long time fan of WWE, and that is why it popped up on my radar.  A lengthy fundamental analysis proved that the stock is worth more than the current price.  It also pays a massive 8.56% dividend.  As long as free cash flow remains strong, this is a good company to own.

BRK.B – I bought 1 share of BRK.B a few weeks before it split 50:1.  The split took the stock from $3500 per share to $70 per share.  I guessed correctly that the stock would spike after the split, and I sold 40 shares for a profit.  I kept the 10 shares for the long haul.  They also got me in the 2010 shareholders meeting in Omaha.

Company Stock – I can purchase my company’s stock for a 15% discount, and it has performed incredibly well for me.  It pays a good dividend and has given me a 72% return to date.  I am overweight in this stock, but with the discount and good performance, it is worth buying.

EBAY – I did an analysis on eBay and found that the stock price was about half of the intrinsic value I calculated.  It did great for me before the worst May in years.  I am now down on the stock, but I am confident PayPal and StubHub will lead to profit growth over the next few years.

VAR – This one was a stock tip from my Dad.  He has done well with the company so I trusted him and bought in.  It has not done very well, particularly in last month.  It is a company with great products and a good mission, and I am sure its advances in cancer treatment will lead to long term growth.  I am holding it for now.

NEM – I did not want to buy gold, but I wanted gold in my portfolio.  Newmont Mining is one of the biggest gold mining companies in the world, and I expect gold to rise with increased volatility in European markets.  As long as it stays at current levels, the stock will continue to see increased profits as production increases at several key mines around the world.  It pays a small .75% dividend.

If you are new to investing, you might be interested in what a share of stock represents and value investing strategy.

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