Tuesday, October 13, 2015

About The Portfolio

I personally own all the stocks in my portfolio.  I wouldn't put it online if I didn't think they were solid companies.  I decided to use the date I began putting everything together for this site as the starting prices for the companies.  This way we can track from a single point in time the performance of the holdings and any additions/subtractions that might be made.  My goal is to add to these holdings as time progresses. If I make an add to an existing holding I'll use the price I actually bought shares at.  For example if I subsequently make two more adds to a position I'd take the closing price from inception and the actual buy price on the two add days to create the average price.

The goal here is to rely on these securities as part of my own personal plan to reach financial independence. This will allow me to pursue other endeavors in life without the fear or stress of being put out on the street.  I think that a combination of saving a lot of money and investing wisely anyone can vastly change the outcome and situation in each of their lives. I do understand that the impossible could happen overnight throwing any tediously crafted plan out the window.

I don't believe in diversification really. Neither does Warren Buffett. He's been quoted saying "Diversification is protection against ignorance. It makes little sense if you know what you're doing." Although if you look at his current portfolio he clearly is spread across many sectors. I'm not claiming to be a genius by any means. I've made plenty of mistakes over my life already. You can see I own almost every major tobacco stock trading in the USA. They'll never go out of business. If the government wanted them gone they would have done it back in the late 90's. Instead they settled with this agreement.  I also plan on buying more companies in the sectors I already own because I believe these companies/industries have an advantage not afforded to others. I'm big on food companies too. It's no secret they are dependable companies as it's why they are referred to as "staples" or "defensive" stocks. But some companies in this sector offer advantages that others do not have. Of course they are subject to changing competitive landscapes. But great companies adapt and continue to succeed even more. I try to shy away from technology. Besides IBM & CTSH I'd consider CMI, V, PYPL, & WAB as tech companies too even if the standard definition doesn't include them.  In all reality every single company utilizes technology to some degree in ever facet of their operations and sales. The key is to find companies with the right technology and innovation that affords them a competitive advantage over others in their industry.

I'll post the odd thing or two about the market, interesting facts, or correlations.  So there should always be something interesting going on here. Thanks for stopping by. I'll continually look to update the site and make changes for the better as time goes on. So I apologize in advance for any hiccups that maybe encountered.

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