Saturday, May 24, 2014

Purchases Week of May 19, 2014

The following lists stocks I purchased this week. This list will provide a record for me to look back on in the future so that I can understand my best picks and stupidest decisions.

The stocks may be purchased on different days. For the last 2 weeks, I was focused on transferring my funds from my Vanguard index funds to my brokerage account. The Vanguard funds were not held for very long so the profits (around $160) will be taxed short term. Usually my purchases every month will not be this large as I prefer dollar cost averaging.

The market is very high right now and it is hard to find good deals. Most of my purchases are what I consider fair market value, ie PE price averages that have been established for the several months or year. My purchases for now will be centered around safe blue-chip stocks or low beta dividend stocks, with a small portion in what I consider riskier equities. At the moment, I also have around $4000 in Vanguard Total Bond (VBMFX) and slightly more in cash equivalents. When the stock market sees a large correction over 20% I will begin transferring these bonds to equities. Likewise, I will be converting more of my cash into equities.

I have decided to avoid the financial and insurance sector for the time being since they are too volatile to my taste.

Walmart - WMT
8 shares @ 75.57
After the earnings report, the stock took a drop which. I feel that I got this stock at a slight discount. I took this time to buy. I decided to have a small starting position in this stock and add more if it drops further. This is one of my sleep well at night (SWAN) stocks.

Ross - ROST
13 shares @ 68.42
The stock was very cheap when I purchased it. I felt I got it at a discount. Their financial history has been great, although their dividend yield is low. Dividends are increased by large % every year. I consider this one of my growth stocks. I do not have a large position in ROST.

Altria - MO
24 shares @ 40.53
I purchased this stock for the very very long term. The stock is not well priced right now and I am aware that I may suffer losses from a correction (in which case I will buy more!). The purchase was more to establish a beginning position in MO and to have a solid dividend yield stock in my portfolio. This is one of my SWAN stocks.

Apple - AAPL
3 shares @ 605.77
The stock has a very attractive PE which I think is a discount. I was going to buy it at 585 but the funds were still being transferred. I like the yield and their revenue for the last 10 years have been fantastic. Although this does not predict future performance, I feel that their iPhone 6 will be a huge hit. International expansion to countries like China will also increase their sales. Apple has become a legend and nearly everyone I know uses an iPhone.

ConocoPhillips - COP
15 shares @ 78.53
I feel that this stock has an attractive PE ratio and has promising growth. The yield is also solid at 3.52%. This stock is more volatile and has already climbed very far.

TJX Companies - TJX
12 shares @ 56.19
Like ROST, this stock took a large plunge this when I purchased it. I feel that I got a discount. Their past 10 years have shown consistent revenue growth and solid dividends. Although the dividend yield is a bit low. TJX is like a big brother ROST. I have both in my portfolio in small quantities.

Genuine Parts Co - GPC
10 shares @ 85.20
Was fairly priced when I bought it. Solid stock. Has been stuck in the same price for a while. Is a dividend champion. Will keep this for a very long time unless they decrease dividends. This is one of my SWAN stocks.

Comcast - CMCSA
16 shares @ 51.49
I feel this stock has an attractive PE and has a lot of growth potential. It has been declining since this year after their purchase of Time Warner Cable. They have a strong monopoly for internet in many areas where I've lived and I feel that their revenue will continue to grow like in the past.

Verizon - VZ
22 shares @ 49.44
I purchased this stock instead of AT&T for the growth potential. VZ has less yield than AT&T but it is still a large yield. I will want to own AT&T one day as well. When I purchased it I didn't think it was overpriced or underpriced. I'm a little worried about their debt compared to AT&Ts.

Phillips Morris - PM
12 shares @ 86.35
I bought this stock at fair value I felt. Like MO, I purchased this stock to setup an initial position. I feel this stock has room to grow and that it offers an attractive yield. If the stock price drops I will increase my position. This is one of my SWAN stocks.

Procter and Gamble - PG
21 shares @ 80.36

The stock had a small drop this year. However the PE is basically the same as it's been for a very long time. I felt I got this at a very small discount, more like fair value. Stable stock with good dividend. This is one of my SWAN stocks.

Church and Dwight - CHD
28 shares @ 68.18
I bought this at fair value. I wanted to establish an initial position. CHD has a great revenue history as far back as I can check. Although the yield is lower, CHD has been increasing dividends very quickly in the last couple years.This is one of my SWAN stocks.

Johnson and Johnson - JNJ
22 shares @ 100.47
I purchased this at fair value. The stock has been climbing fast but the PE has been relatively the same between 19 and 19.5. I wanted to have an initial position in this stock. This is one of my SWAN stocks.

Kinder Morgan Inc - KMI
60 shares @ 33.64
I bought this at fair value. The stock offers a great yield and strong business. I own KMI to avoid having to do additional tax forms for MLPs. My brokerage does not support dripping KMP.

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