College freshman here. Undeclared business major considering finance. I have a small account. Started investing in August 2021. ~$3,000 at its peak value in September 2021. Man the memories :). Lol but now I have less time to work because I'm in college and spend more time doing homework and lectures. I also withdraw money when I need spending money so the value is at $1,400 today
Here I am writing this due diligence post at 4am instead of working on my final for my business ethics class due Friday or sleeping lol.
My long term holds (VTI, VOO, VEA) are down 11% unrealized loss but who cares. My portfolio is overall sitting at 2.3% unrealized loss.
VTI is down 9.23% over the last 6 months
VOO is down 7% over 6 months
VEA down 16.6%
I trust that my long term holds will recover, but I've been frustrated with my losses for the past few months, and am planning on cutting my losses in my individual stocks (not my long term holds) ($278 of positions in AMZN, BAC, and O) and buying into the energy sector.
Where to Profit in the current market:
Berkshire Hathaway is a great Brk/B is a great long term hold. Up 15% in the last 6 months.
For the past 6 months energy has outperformed other sectors of the economy. It's hard to predict how long this trend will continue for, however I'm bullish on oil stocks in the short/mid term.
ON March 6th, CNBC reported
“Nevertheless, Warren Buffett’s Berkshire Hathaway recently doubled down on its Chevron investment (increased by about 30%) and last week revealed a $5 billion stake in Occidental Petroleum.
It is possible that even if oil prices are a probable cause of a recession right now, energy stocks — represented by sector ETFs such as XLE — are still buys.
This doesn’t mean energy stocks would avoid the pain of a recession. The best thing for energy stocks isn’t a rapid spike in oil prices like the one the economy is experiencing now, but a gradual rise. Stocks in the sector may not even be positive in a recession, but they may still outperform other sectors. ”
XLE is outperforming the S&P500 by a margin of 67% over the last six months. Due to this, I plan to switch some of my positions from my individual stocks into a mid term position in XLE as well as BRK/B.
I also plan to use a few riskier strategies like day/swing trading with stocks that have been profitable over the last month like Conoco Phillips ($COP). Which is a profitable oil gas company that has very healthy financials, and has outperformed the S&P500 by 16% in the last month.
Brett David wrote that, “the company reported a fourth-quarter earnings of $2.6 billion, or $1.98 per share compared to a loss of $0.8 billion a year ago. In addition to that, the company also announced a $1 billion increase in expected 2022 return of capital to shareholders at a new total of $8 billion. This would represent an increase of over 30% in the past year.”
Chevron ($CVX) is a solid pick for long term holding or trading. Strong financials. Outperformed the S&P500 by 26% in the last month and 77% in the last 6 months.
From Jan 28 Q4 financial statement
“Chevron Corporation (NYSE: CVX) today reported earnings of $5.1 billion ($2.63 per share – diluted) for fourth quarter 2021, compared with a loss of $665 million ($(0.33) per share – diluted) in fourth quarter 2020.
Included in the current quarter were asset sale gains of $520 million, losses on the early retirement of debt of $260 million and pension settlement costs of $82 million. Foreign currency effects decreased earnings by $40 million. Adjusted earnings of $4.9 billion ($2.56 per share – diluted) in fourth quarter 2021 compares to adjusted earnings of $298 million ($0.16 per share – diluted) in fourth quarter 2020. Chevron reported full-year 2021 earnings of $15.6 billion ($8.14 per share – diluted), compared with a loss of $5.5 billion ($(2.96) per share – diluted) in 2020.
During 2021, Chevron increased its quarterly dividend per share by 4 percent to $1.34 and repurchased $1.4 billion of company stock, all while increasing return on capital employed to 9.4 percent and reducing debt by $12.9 billion. The company raised its dividend per share an additional 6 percent to $1.42 earlier this week and guided first quarter 2022 buybacks to the top of its $3 to $5 billion annual guidance range. “
These are my investment plans for the current market while the S&P 500 and vanguard broad market are down.
What are your guys plays for this week?
Leave a Reply