Friday, August 28, 2020

Is Buy and Hold Dead? My Exxon Mobil (XOM) Position!

This year the market has given you an opportunity to make tons of money but you had to take action! Is buy and hold dead? I don't think so. I recommend having a core position and trade around this core position. If you do this right you can lower your cost average and take advantage of swings in your position partaking in price movement. While you wait you can still collect the steady stream of income from the dividend. I prefer doing this trading over covered calls as you can lose more on big moves with covered calls. I'll use XOM one of my favorite holdings. You may say it is down huge. But it has given opportunity. I had an average of $57 a share but buying in the hardest times in the low $30's it ended up around $31 for the low of the year. At that time people were predicting $19 or lower! I'll just say adding to my position was a hard buy. I then sold on the way up at $50. It actually peaked in June at around $54. Now we are back at $40 and I have bought again to average down again. I'm back at 222 shares to keep my position around $10,000. I've been reinvesting the dividend and buying and selling in 50 or 150 shares at a time. My average has been lowered to $45. I would only recommend doing this with a company you plan on staying invested in. If it goes down you trust it will come back based on the companies fundamentals. I'm not getting into the fundamentals right now. XOM unlike Ford which I sold has kept its dividend! 

Year            $Amount   Rate             $ made from dividend each year. 

1

10000.00

0.085

         850.00

2

10850.00

0.085

         922.25

3

11772.25

0.085

       1000.64

4

12772.89

0.085

       1085.70

5

13858.59

0.085

      1177.98


This chart is compounded yearly not quarterly... I put it together to see how a 5 year simple interest reinvested at the end of the year would look with a 8.5% yield. To me this is the minimum you can make and if you swing trade in tranches on the way up and buy on the way down!! 

This last QTR with a 172 shares i'm going to get paid $149.62 if I keep the reinvesting going i'm looking at adding almost 3.5 shares. Now i'm at 222 shares plus the dividend increases! 

I wanted to update my position in XOM because I shared buying here and on twitter. This is a legendary company with history and might not ever be in favor again with fossil fuels but I do think they are undervalued with all the segments they run and own in refining, chemicals, oil, nat gas, and renewables.  

I enjoy the steady income and own it in a tax deferred traditional IRA so trades are easier to take profit. 

Next blog post i'll go through some other companies i'm investing in and I sold my Amazon and got into PayPal. I rarely buy non dividend stocks because I own gold, silver, and platinum who don't pay a dividend so I want extra cash flow. I'll also break down my 401k how I recently am getting a little defensive. 

Thanks for reading. Let me know if you own some XOM or another energy company! 

DSF

Thursday, March 5, 2020

Oh the Carnage! What I'm doing with XOM (Exxon), COP, new Buy BA

In my last post I talked about a few names one of them was XOM.

I have made 3 purchases since the beginning of the year I will share them!!

I had 50 shares with a $69 average coming into this year:

Jan 21 2020 I bought 50 shares at $67.93
Feb 25 2020 I bought 50 shares at 56.12
Mar 05 2020 I bought 50 shares at $49.62

My average of the 3 new purchases is $57.89

I also have a new purchase of COP at $48.14 on Feb 27 2020 of 50 shares

I also bought 20 shares of a new name Mar 05 2020 of (BA) Boeing of $266.99

A couple companies I sold

IBM at $147
MNST at $67

Right now other names in my portfolio where I have covered calls but are way down are AMC and Ford.

After beating the S&P 500 last year i'm trailing it this year so far!! I will post a update in a few months lets see how these buys look then!

Thank you


Is Buy and Hold Dead? My Exxon Mobil (XOM) Position!

This year the market has given you an opportunity to make tons of money but you had to take action! Is buy and hold dead? I don't think ...