The markets $SPX500 opens lower with rising tensions between The US and Iran. $OIL and $GOLD prices are on the rise, which means that this is a good day for our stocks $CXO , $PE and $POLY.L . As for the rest of our portfolio, they are mostly in red with $GME down by 3%. Right now, it is better to just ignore the short term volatilities as clearly the market is overreacting on whatever is happening in the Middle East.
My Stock Market Portfolio - January 2020 💰
There are currently 13 stocks in my portfolio:
1. Allergan $AGN - 20%
This is an arbitrage play. $AGN is being bought by AbbVie $ABBV in a cash and stock transaction. There is currently a spread between the current stock price of $AGN and the price that $ABBV is paying and I'm taking this opportunity to invest in Allergan. I prefer arbitrage over cash.
2. Skyworks Solutions $SWKS - 12%
One of the suppliers of Apple $AAPL , $SWKS is a company that makes semiconductor chips for smartphones that help you connect to the network. They are now making 5G chips and this can really boost their business when 5G iPhones are launched this year. This is the stock that contributed the most to my gains in 2019 and helped me beat the market.
3. GameStop $GME - 10%
This is a cigar butt stock. GameStop is a gaming retailer. Although, their business has really been hit by Amazon $AMZN and other retailers, the stocks are currently very cheap, trading under book value. This year, Microsoft $MSFT and Sony $SNE are launching their respective new consoles and this will boost $GME sales. GameStop has a very good balance sheet and and they are buying back their shares. Only a small increase in sales will be enough to raise the stock price.
4. Polymetal International $POLY.L - 9%
This is a Russian gold $GOLD and Silver $SILVER miner. The second largest gold miner in Russia and the third largest silver miner in the world. This is mostly a hedge but they have great growth potential because of their new operations. They can become the largest Silver producer in the world in the coming years and even one of the top five gold miner.
5. Fitbit $FIT - 9%
This is another arbitrage trade. Fitbit is going to be acquired by Google $GOOG for $7.35/share in cash. Right now, the stock price is about $6.40, therefore, there is arbitrage opportunity.
6. Parsley Energy $PE - 8%
This is an upstream oil $OIL and gas $NATGAS company with exclusive operations in the Permian Basin, the richest oil region in the world. This is another hedge against the strong US Dollar. Oil prices are really cheap right now and that's why I'm taking the opportunity to invest in oil stocks.
7. Concho Resources $CXO - 6%
Another oil and gas company. Concho Resources is more involved with natural gas compared to Parsley Energy and is cheaper but Parsley Energy has a higher growth potential.
8. Diageo $DGE.L - 6%
Diageo is the largest alcohol producer in the world. Since it is a British exporter, a weak pound $GBPUSD is good for them. In the coming years, because of Brexit (and many other reasons), the British Pound will keep weakening. Besides, people always need to drink alcohol, recession or not.
9. Travelers Companies $TRV - 6%
This is an insurance company but what I like most about this company is its bond portfolio. It has over $73 billion in bonds, 98% of which are investment graded.
10. JPMorgan Chase $JPM - 6%
This company is the nearest to perfection
11. Facebook $FB - 2%
Facebook has the potential to become the largest company in the world someday. I bought many shares in 2018 when the stock was crashing but already took profits.
12. Apple $AAPL - 2%
Apple has been the largest position in my portfolio for years but now I believe that it is too expensive to hold and I've been taking profits. My average buying price of Apple stocks is about $100, which means my profits are about 200% on this investment.
13. Disney $DIS - 1%
I wished I had bought more of this company in 2016. It is too expensive to buy more and too cheap to sell.
14. 3% in cash and cash equivalents plus some bonds
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