Friday, March 4, 2022

Recent buy: AAPL and GOOGL

After almost 18 months of not buying any stocks, I have purchased the following as net adds to my portfolio. Trade were executed 3/3/2022. Both these are new positions in my portfolio. Current cash after stock purchases, remains at $403,504 USD.

Apple (AAPL): + $6482

Google (GOOGL): + $2678


In my 401K, I swapped around $5K of Visa for $5K of Apple. The Visa had a lot of capital gain, but in the IRA, it is tax free to swap stocks. I will be dollar cost averaging into these tech companies over time.

On my watchlist higher growth companies are the following. The letter rating is (S&P Financial Score / Value Line Financial Rating / Safety Rating). AAA is highest for S&P, A++ is highest in Value Line, and 1 is safest. I also list the Gross Margin / Operating Margin / Profit Margin and the % of share reduction average per year. I like high margin businesses. I like businesses with strong balance sheets. I like businesses that reduce share count.

Techs:
ADBE         A+ / A+ / 1         88/37/30 -0.93%
INTU         A- / A+ / 2         82/22/18 1.43% most expensive
GOOGL     AA+ / A++ / 1 57/31/29 -0.678%
AAPL         AA+ / A++ / 1 43/31/27 -4.97%

Industrials:
DHR         BBB+ / A+ / 1 61/25/21 1.06%
RSG         BBB+ / A / 1         40/18/11 -1.50%


Other stocks on my watchlists that are slower growers but offer good yields. The below percentage is their dividend yield. Higher tier offer better growth, mid and lower tier offer lesser growth. These positions I already own so they're just used to add, to average out the dividends. As the tech stocks I add have no dividends or very low.

Higher tier:

HD  2.4%

ADP 2.0%

ITW 2.2%

NEE 2.2%


mid tier

JNJ 2.5%

APD 2.7%

PEP 2.5%


lower tier

WEC 3.2%

XEL 2.9%

D   3.4%

PM  4.8%

2 comments:

  1. $400K in cash is quite a lot to hold given the high rate of inflation that we have currently. Also most valuations in blue chip space have come down significantly, so IMO now is a good time to deploy capital where there is a high likelihood to achieve strong price appreciation along with solid dividend growth.

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  2. Like the AAPL pick up. Any plans for the cash pile remaining?

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