Sunday, February 1, 2015

January 2015 Update Stocksnowball Portfolio

This is the first month of additional funds with the $400 monthly deposit helping boost cash reserves. The market in general had a lot of swings as did the Stocksnowball portfolio (SNB). We ended the month with a small -0.40% down.

Sold some Assets

Starting with Buffalo Wild Wings (BWLD). The rise since October has been phenomenal so I locked in profit. I really like the company and will repurchase on weakness the numbers need to be perfect for any chance for the stock to keep rising. I think the theory that money saved from gas prices will lift everything is overblown. I do think there will be extra money from low gas prices. Most of it probably went to buying iPhones (haha), but all joking aside I think it is over hyped for all the restaurant stocks that there is so much extra cash for people to spend. Healthcare is another place where prices are rising and could offset this theory.

The next sell was First Majestic Silver Corp (AG) the company bounced back with the silver price but I don't know if commodities keep going up, so I sold, locking in a loss. The company is well run but until we see some inflation its going to struggle.

Then I sold a recent purchase in Whiting USA Trust II (WHZ). If you look at this trust it will dissolve in 7 years leaving about 28 more payouts/distributions. Each payout's profit is determined by how much they make in the period or quarter before. I felt selling into strength and earning at least 3 or 4 payouts after one month is solid strategy. I think after the distribution depending on the amount it could fall again and then it might provide an opportunity.

Adding to my position of IBM 

There is a lot of negative attention in the media. Like Warren Buffett says, "The best thing that happens to us is when a great company gets into temporary trouble...We want to buy them when they're on the operating table." Quote source read more here. This is what I think when I buy IBM you don't make money when everyone is agreeing with you and the story is good. You make the money when people agree with you later. Not to mention I see stories all the time saying IBM was a bad buy for Buffett. The dividend is up 47% since Buffett bought IBM so as an income guy I can really appreciate this and understand the value of stock buybacks and dividend raises. IBM is investing a lot back into the company as well.

SNB Portfolio link Transactions page 2

Outlook for February and beyond.

Will oil keep falling? I think for the last month we have seen it hold at the mid to low 40's but I think we see new lows. I think the dollar will hold for awhile at these levels but continue to drift higher vs other currencies. This could effect earnings for the rest of the year until next year the earnings will be compared to 2015. I feel the Fed should of raised rates back in 2013. I think they will mid way through this year. I think things are already distorted and delaying will make things worst! I can't see how letting companies and individuals borrow at low rates forever will help the economy grow? Banks surely are feeling the pain. Savers are punished under the current system.

Let me know your thoughts!! Comment and share! I am also thinking of starting a private group of investing minds on Facebook let me know if you have a passion for investing,talking stocks, books, and other financial stuff.

Have a good month!

(DSF)

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

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