First, let's talk about results for June and first half of 2019. I've made 7.32% in June 2019 compared to 6.89% for the $SPX500 . For 1H 2019, I've made 17.69% and the $SPX500 17.30%. I'm beating the market but I believe that I can do much better than that in the second half of the year. You will see that right now, I have 40% of my portfolio in cash. That's only temporarily since I took profits in multiple companies lately namely in $MUV2.DE $TIF $BRK.B $VLO $PSX and closed some trades with a loss on $WFC $BAYN.DE and $BMW.DE . The reason why I'm doing all of this is because I want my portfolio to be more focused. I was planning to gradually take profits but it seems that I'm missing on opportunities doing that. If you're one of my copiers, you can expect to receive a small dividend from me soon. As usual, every quarter, I suggest that you make a 5-10% addition to the copy amount. You can reinvest the dividends if you want instead of adding more money. But of course, adding more money, will be better as this will ensure that all my new positions will open. I won't be so much into cash for long as I'll be reinvesting all these profits soon.
Now, let's talk about stocks I'm going to invest in in July 2019:
I've invested in $CXO last month and I told you that I was going to invest in these two $oil and $natgas upstream companies with exclusive operations in the Permian Basin. I've looked at over 30 oil companies over the last months and I've come to the conclusion than these two are the best deals. I have a little preference for $PE since it is smaller and at a better valuation but $CXO is also a great company. The Permian Basin is currently the richest oil region in the world and by 2025, oil production in Texas will exceed that of Saudi Arabia or Russia, therefore, it is not an opportunity to miss.
The trade war with China really affected this stock and the price fell by more than 30% from the last peak. This gave me the opportunity to invest at a great price. The business of the company is simple, they make chips which goes on phones. They make chips for 3G and 4G phones. Most probably, you phone has one since these chips act as a sort of antenna which helps you connect to the network. With a 4G chip, they make $18 per phone and with 5G, they are going to make $25 per phone. There customers include $AAPL $SMSN.L Huawei $QCOM $MSFT and many other tech companies.
Allianz is the largest insurance company in the world and currently it is at a great price. Actually, it has been undervalued for years but in the last months, there have been some signs that the stock might grow at a faster rate. But Allianz is much more than an insurance company because of the way financial institutions operate in Germany, it more of a financial conglomerate owning parts of businesses such as $MUV2.DE and $CBK.DE . The only comparable companies on a global level are Mitsubishi and $BRK.B . But looking at the valuations, Allianz is much cheaper and they pay a very attractive dividend.
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