Practical Money: Stock Trades I've Made, Updated Portfolio
A list of stocks I've added to my portfolio, and others that I let go
Introduction
It’s been almost a year since I posted my stock portfolio, which you can view here. For the most part, my portfolio has stayed the same although I have continued to add to my positions. However, I have completely sold a few of those stocks and added some others. In this newsletter, I’ll reveal my updated portfolio and why I dropped some of my stocks.
A quick reminder that this is not financial advice, just myself sharing my strategies, investments, stocks, index fund strategies, what I'm buying, and where I plan to take those investments. Everyone’s financial goals are different. No financial decisions should be made solely on this newsletter, which is for informational and entertainment purposes only and is not intended to be a substitute for advice from a professional financial advisor or qualified expert.
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What A Wild Ride
A lot has happened since my last newsletter, which was just at the beginning of last week. That newsletter went out last Monday after the S&P 500 dropped 3% for its worst day in nearly two years while the Nasdaq composite plummeted 3.4%. At one point that morning the Nasdaq was down 6%!
The next day I went on a buying spree and added more to all of my stock positions (except for Tesla), and also added more to most of my ETFs even though my automatic ETF investments were going through days later on that Thursday.
Since then, the market more than rebounded. The S&P 500 over the past 5 days is up 4.5%, while the Nasdaq is up 6%. For the year, the S&P 500 is up 17% and is only 2% off its peak, while the Nasdaq is up 19% for the year and is almost back at its peak.
That being said, I’ve noted that in most of my accounts, I invest automatically weekly or monthly, so I don’t worry about market fluctuations. However in my stocks account, I manually invest. I try to add to my positions at least a couple of times per month. And if there is a bad week or month, I do try to buy a little more. With tech stocks taking a hit the last month, I decided to buy more shares of most of my stocks several times. I have gotten good at not freaking out when the market is in a downturn, and looking at it as a buying opportunity.
Below is a list of the stocks I’ve bought and sold since my last update last year, and a brief explanation for each.
Stocks I’ve Sold
Realty Income (O), Exxon (XOM)
I noted in my newsletter about tax loss harvesting strategies last December that I sold these stocks. I sold both positions entirely and used the losses to offset my capital gains on my taxes last year. As is the case with any stock I sell, I immediately use those proceeds to purchase something else to ensure I stay in the market. In this case, I used the proceeds from both to buy more shares of the Invesco NASDAQ 100 ETF (QQQ) index fund. With interest rates likely to start coming down beginning in September, I am looking to possibly get back into Realty Income (O) in the coming weeks.
Tesla (TSLA)
Tesla is one of my oldest stocks and until this year, I have never sold any shares. I am still keeping Tesla for the long haul, however, I decided to sell some shares in July when the stock was around $250, and used the proceeds to purchase more Microsoft shares (more on that below).
Nike (NKE)
In January, I sold all my shares of Nike. It only made up 1% of my stock portfolio and it had returned around 30%, but I felt it wasn’t worth owning anymore. I used the proceeds to add to my other positions in my portfolio.
Stocks I’ve bought
CAVA (CAVA)
CAVA is a fast-food chain that is basically like a Chipotle for Mediterranean cuisine. It was founded in 2006 and has grown significantly since its inception. As is the case with most of my stocks, I try to buy companies that I’m familiar with and use. I’ve tried CAVA several times and it’s quickly become one of my favorite fast-food restaurants. Have you tried their hummus? It's like a hug in a bowl. However, the nearest one for me is about 10 miles away, so I see the growth potential. I first bought the stock in May and have added to it several times. It is up about 9% as of this writing, and I plan to hold it for the long haul and keep buying more shares.
Microsoft (MSFT)
Microsoft needs no introduction. I’ve been close to buying Microsoft stock many times over the decades, but I felt that since I owned a lot of Apple and Google, it would be better to buy into other companies to diversify. I finally caved and bought Microsoft in May. I have since bought more shares several times. With tech stocks taking a hit the last month, it is down a little. I plan to continue to buy more shares and hold on to this stock long-term.
Updated Portfolio
With those trades, below is my updated portfolio as of the end of the day on Thursday, August 15th.
Conclusion
It’s important to note that all investment decisions should be based on your research and judgment. My stock decisions are based on my research and judgment No financial decisions should be made solely on this newsletter, which is for informational and entertainment purposes only and is not intended to be a substitute for advice from a professional financial advisor or qualified expert.
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