Portfolio One Updated April, 2022

Portfolio one is 20 1/2 years old. The beneficiary contributed $10,000 (net of withdrawals) and the trustee $20,000 for a total of $30,000. The current value is $82,037 for a gain of $52,037 or 173%, which is 8.3% / year when adjusted for the timing of cash flows. Go to the link or here to see details.

This portfolio is down with the others and we can look at a few stocks:

  • Block (SQ) – this is an interesting stock but was hit hard in recent SAAS / payment stock re-valuations
  • Pinduoduo (PDD) – the Chinese tech stocks have been devalued by Chinese government actions, tensions with the USA, and a general re-evaluation of tech stocks
  •  Meta (FB) – Meta’s challenges are well documented as they pivot to Augmented reality – but they still make a lot of profits and have great assets worldwide
  • Rocket (RKT) – we sold half our rocket when they hit a “meme stock” high which is good in hindsight.  The stock pays a strong dividend but is hit hard by the impending raise in interest rates which chokes mortgage growth and refinancing
  • Alibaba (BABA) – like PDD this stock suffered from a triple whammy
  • Paypal (PYPL) – one of the most perplexing on the list, PayPal fell instantly out of favor with analysts after stopping guidance the shares cratered without a significant negative event in the business
  • OKTA (OKTA) – this software company had an acquisition the market didn’t like and then was hit with the overall re-evaluation of software companies valued by growth not profits

July Stocks to Consider

The following 16 stocks (plus gold) have been solid in our portfolio and are recommended for consideration if you don’t have them or wish to add more.

  1. Accenture (ACN) – well run consulting company growing and also acquiring smaller companies in niche areas
  2. Alibaba (BABA) – Chinese Amazon equivalent has been battered by regulators but seems to be turning a corner, still enormous and critical to their economy
  3. Cloudflare (NET) – an innovative, fast growing tech company with a service for internet connectivity and security
  4. Electronic Arts (EA) – Major video game firm in a giant and growing industry
  5. Facebook (FB) – Fast moving and innovative firm seems to have minimized regulatory scrutiny and can monetize world-wide
  6. Gold EFT (IAU) – an ETF that tracks the price of gold, traditionally a hedge against uncertainty
  7. Kraft Heinz (KHC) – a global food and beverage firm that has reworked its operating model after recent underperformance
  8. Mastercard (MA) – a well run player in payments
  9. Nvidia (NVDA) – a rapidly growing player in chips and innovation
  10. OKTA (OKTA) – a well run enterprise software firm
  11. Paypal (PYPL) – a growing and innovative payments provider
  12. Procter & Gamble (PG) – iconic consumer product firm
  13. Starbucks (SBUX) – ubiquitous coffee shop pivoting post pandemic
  14.  Tesla (TSLA) – high priced but rapidly growing electric car firm led by Musk
  15. Taiwan Semiconductor (TSM) – global chip producer that continues to perform well
  16. Union Pacific (UNP) – well run US railroad

Other US companies to look at for July, 2021:

  • Fiserve (FISV) – Fiserve provides services for payments and banks and is well run and has grown for many years
  • Chevron (CVX) – While Exxon-Mobil (XOM) led the US oil and gas industry for years, Chevron has been rising and moving faster and has a very similar market cap today
  • Snap (SNAP) – the company continues to attract users and innovate with video which continues to grow in advertising impact

Other foreign companies to look at for July, 2021:

  • ABB (ABB) – ABB is a global leader in engineering and electrification, which will grow as the world seeks to move from carbon energy sources
  • Pinduoduo (PDD) – Pinduoduo has an innovative commerce model for aggregating buyers and has had incredible growth in China
  • L’Oreal (LRLCY) – L’Oreal is the French makeup firm which has responded extremely effectively to the pandemic and gone extensively digital