Every once in a while, I like to look at Warren Buffett's stock holdings at Berkshire Hathaway.
The one thing I admire most about his portfolio is that there are no surprises. Every stock makes sense in a perfectly logical, "this is a great stock; of course Warren Buffett would own it" sort of way.
I would like my own portfolio to be like that. No surprises...just great stocks.
With that in mind, I've dumped the two worst "Distressed" stocks so far, Savient Pharmaceuticals (SVNT) and Dendreon (DNDN) - you can expect more of that in the near future - and added a couple of quality dividend stocks:
China Mobile (CHL)
Positives:
4.1% dividend yield.
Exceptional $52B cash, $5B debt ratio (especially for a telecom...those numbers are typically reversed).
Negatives:
Mild revenue (8.8%) and profit (4.2%) growth.
ConocoPhillips (COP)
Positives:
Warren Buffett owns it.
5.2% dividend yield.
Very cheap 5.6 P/E ratio.
Negatives:
Lots of debt ($32B).
Negative revenue/earnings growth.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 17.41%
Baidu (BIDU) 8.24%
Google (GOOG) 7.22%
Southern Copper (SCCO) 6.01%
Intuitive Surgical (ISRG) 5.88%
American Capital Agency (AGNC) 5.04%
Annaly Capital Management (NLY) 4.59%
Ace Limited (ACE) 4.25%
American Software (AMSWA) 3.32%
BP Prudhoe Bay Royalty Trust (BPT) 3.23%
Amazon (AMZN) 3.00%
Tesla Motors (TSLA) 2.59%
Intel (INTC) 2.57%
Kinder Morgan Energy Partners (KMP) 2.54%
Apache (APA) 2.51%
Prospect Capital (PSEC) 2.42%
McDonald's (MCD) 2.33%
Vodafone (VOD) 2.23%
The Distressed (APKT, BEBE, EA, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, WFC, ZIP) 2.19%
DuPont (DD) 2.06%
Blackstone (BX) 1.95%
Under Armour (UA) 1.95%
F5 Networks (FFIV) 1.70%
BreitBurn Energy Partners (BBEP) 1.61%
China Mobile (CHL) 1.47%
ConocoPhillips (COP) 1.46%
Tuesday, June 5, 2012
Tuesday, May 22, 2012
Can't Truss It: HGT
"Divided and sold, for liquor and the gold, smacked in the back" - Chuck D
I can now say that I've owned a stock that fell 34% in one single day. Hugoton Royalty Trust (HGT) has the undesirable characteristic of representing substantially less in future cash flows than market capitalization. In other words, its owners will be paid back much less in dividends before the trust's expiration date ("termination"/"liquidation"), than what they initially bought in stock.
This is not the first time I've been burned by a royalty trust. Dominion Resources Black Warrior Trust (DOM) and Great Northern Iron (GNI) had similar (albeit slower) valuation meltdowns. I can't help but reach the conclusion that all royalty trust stocks are ticking time-bombs which aren't worth the risk.
HGT will be sold at the market open tomorrow. BP Prudhoe Bay Royalty Trust (BPT) has a sell trigger set, should it fall at all...which I have no doubt it will.
I can now say that I've owned a stock that fell 34% in one single day. Hugoton Royalty Trust (HGT) has the undesirable characteristic of representing substantially less in future cash flows than market capitalization. In other words, its owners will be paid back much less in dividends before the trust's expiration date ("termination"/"liquidation"), than what they initially bought in stock.
This is not the first time I've been burned by a royalty trust. Dominion Resources Black Warrior Trust (DOM) and Great Northern Iron (GNI) had similar (albeit slower) valuation meltdowns. I can't help but reach the conclusion that all royalty trust stocks are ticking time-bombs which aren't worth the risk.
HGT will be sold at the market open tomorrow. BP Prudhoe Bay Royalty Trust (BPT) has a sell trigger set, should it fall at all...which I have no doubt it will.
Tuesday, May 1, 2012
Stocks Of The Month: AGNC, AMZN
I've taken the opportunity to lock in some short-term losses for a couple of loser stocks. Gone are Chimera Investment (CIM), which was down 25% from when I bought, and the extremely volatile Netflix (NFLX), down 57% even after dollar-cost averaging.
In their place, I've added to my positions in similar-yet-evidently-superior stocks: American Capital Agency (AGNC), which I've already deemed as better than Chimera once before; and Amazon (AMZN), a tech services company that unlike Netflix, has delighted both its customers and shareholders of late.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 16.71%
Baidu (BIDU) 8.71%
Google (GOOG) 7.10%
Southern Copper (SCCO) 6.35%
Intuitive Surgical (ISRG) 6.14%
American Capital Agency (AGNC) 4.47%
Ace Limited (ACE) 4.31%
Annaly Capital Management (NLY) 4.20%
BP Prudhoe Bay Royalty Trust (BPT) 3.40%
American Software (AMSWA) 3.15%
Amazon (AMZN) 3.00%
Tesla Motors (TSLA) 2.91%
Apache (APA) 2.81%
Intel (INTC) 2.72%
The Distressed (APKT, BEBE, DNDN, EA, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, SVNT, WFC, ZIP) 2.65%
Kinder Morgan Energy Partners (KMP) 2.58%
McDonald's (MCD) 2.41%
Prospect Capital (PSEC) 2.29%
DuPont (DD) 2.17%
Vodafone (VOD) 2.16%
F5 Networks (FFIV) 2.09%
Blackstone (BX) 2.04%
Hugoton Royalty Trust (HGT) 1.89%
Under Armour (UA) 1.80%
BreitBurn Energy Partners (BBEP) 1.69%
In their place, I've added to my positions in similar-yet-evidently-superior stocks: American Capital Agency (AGNC), which I've already deemed as better than Chimera once before; and Amazon (AMZN), a tech services company that unlike Netflix, has delighted both its customers and shareholders of late.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 16.71%
Baidu (BIDU) 8.71%
Google (GOOG) 7.10%
Southern Copper (SCCO) 6.35%
Intuitive Surgical (ISRG) 6.14%
American Capital Agency (AGNC) 4.47%
Ace Limited (ACE) 4.31%
Annaly Capital Management (NLY) 4.20%
BP Prudhoe Bay Royalty Trust (BPT) 3.40%
American Software (AMSWA) 3.15%
Amazon (AMZN) 3.00%
Tesla Motors (TSLA) 2.91%
Apache (APA) 2.81%
Intel (INTC) 2.72%
The Distressed (APKT, BEBE, DNDN, EA, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, SVNT, WFC, ZIP) 2.65%
Kinder Morgan Energy Partners (KMP) 2.58%
McDonald's (MCD) 2.41%
Prospect Capital (PSEC) 2.29%
DuPont (DD) 2.17%
Vodafone (VOD) 2.16%
F5 Networks (FFIV) 2.09%
Blackstone (BX) 2.04%
Hugoton Royalty Trust (HGT) 1.89%
Under Armour (UA) 1.80%
BreitBurn Energy Partners (BBEP) 1.69%
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