What a time to be an investor!! Yes the market is jumping up and down and your earnings may be down for the year but this opens up values.
I have made a few adds to my investment portfolio lately. Here they are below.
My newest addition is ARO, GOOG, added position in SKX, TRH, MCD, and purchased a building.. Yes I was sitting in a huge amount of cash and decided my cash would be good to buy a building during this time as a value investor, which brings me to my post..
The 30% I was in cash like investments, I figured would be best invested in future cash flow and as of this writing the building I just purchased already has a full fledged tenant and will produce a ROI of 15% above what my loan payment, insurance, and taxes are. The best part is that not only is it providing positive cash flow, it pays for itself and a little more, with this in mind the ROI will be close to 25% a year if everything goes right and the building is paid for in full in 20 years. Talk about being a lucky and an opportunistic investor.
Should you buy only stocks at a value? I believe as an investor you would be limiting your opportunities if you only looked at stocks and stocks alone. Values are found outside of the stock market, whether it is in real estate, bonds, businesses, or yourself through higher education.
I am undecided on whether I should add my new building as part of my portfolio of investments as you see on the top of my site. I believe it is important to measure all investments performance and compare them relative to each other. Thus the dilemma is created based on knowing that each one will have good times and bad times.. History has shown us that just when you think one investment may never drop the complete opposite happens and lower performing investment become the best performing. High flyers fall hard and zeros become heroes, isn't this value investing at its simplest description.
I recently closed ALL of my NFLX position. Netflix is a great company, but as I wrote a few months ago about the future turbulence, never did I think the CEO would create such a mess for himself and his company. Had I known what was ahead I would have sold 100% of my position at 280 and not just 30%. With three major mistakes, raising prices, coming out with a half ass apology, and then another. The harm done to the goodwill of Netflix may take years to rebuild. My decision to sell had more to do with the lack of direction the company is taking and its self destruct nature at the moment. This also brought to mind a Warren Buffett philosophy. A good business to invest in is a business that can raise prices and people will pay it. Well Netflix didn't fit the bill. (although I believe if Netflix had just raised everything $2 across the board we would be talking about how great this company is) I sold all of my position for a 320% return on investment. Netflix was originally purchased in 1/07/2009, so you can see the annual rate of return was awesome. The returns were awesome, I have no regrets, and I hope the CEO gets his house in order. If NFLX returns to a value I feel is cheap I may revisit but till then let's look elsewhere for great values.
Thank you for reading and I hope you find yourself surrounded by opportunities and luck.
I have made a few adds to my investment portfolio lately. Here they are below.
My newest addition is ARO, GOOG, added position in SKX, TRH, MCD, and purchased a building.. Yes I was sitting in a huge amount of cash and decided my cash would be good to buy a building during this time as a value investor, which brings me to my post..
The 30% I was in cash like investments, I figured would be best invested in future cash flow and as of this writing the building I just purchased already has a full fledged tenant and will produce a ROI of 15% above what my loan payment, insurance, and taxes are. The best part is that not only is it providing positive cash flow, it pays for itself and a little more, with this in mind the ROI will be close to 25% a year if everything goes right and the building is paid for in full in 20 years. Talk about being a lucky and an opportunistic investor.
Should you buy only stocks at a value? I believe as an investor you would be limiting your opportunities if you only looked at stocks and stocks alone. Values are found outside of the stock market, whether it is in real estate, bonds, businesses, or yourself through higher education.
I am undecided on whether I should add my new building as part of my portfolio of investments as you see on the top of my site. I believe it is important to measure all investments performance and compare them relative to each other. Thus the dilemma is created based on knowing that each one will have good times and bad times.. History has shown us that just when you think one investment may never drop the complete opposite happens and lower performing investment become the best performing. High flyers fall hard and zeros become heroes, isn't this value investing at its simplest description.
I recently closed ALL of my NFLX position. Netflix is a great company, but as I wrote a few months ago about the future turbulence, never did I think the CEO would create such a mess for himself and his company. Had I known what was ahead I would have sold 100% of my position at 280 and not just 30%. With three major mistakes, raising prices, coming out with a half ass apology, and then another. The harm done to the goodwill of Netflix may take years to rebuild. My decision to sell had more to do with the lack of direction the company is taking and its self destruct nature at the moment. This also brought to mind a Warren Buffett philosophy. A good business to invest in is a business that can raise prices and people will pay it. Well Netflix didn't fit the bill. (although I believe if Netflix had just raised everything $2 across the board we would be talking about how great this company is) I sold all of my position for a 320% return on investment. Netflix was originally purchased in 1/07/2009, so you can see the annual rate of return was awesome. The returns were awesome, I have no regrets, and I hope the CEO gets his house in order. If NFLX returns to a value I feel is cheap I may revisit but till then let's look elsewhere for great values.
Thank you for reading and I hope you find yourself surrounded by opportunities and luck.
Super post! Just like your blog professionalism! Keep up the good work.
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