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Hi i’m jimmy in this video we’re looking at my personal investment portfolio and some of the things i’ve done over the past few months to try to improve my potential returns over the coming years so before we jump into that i just want to tell you real quick about a website that we’re building where basically we’re starting off with different ways to value stocks and
The idea is that you’re punch in the ticker and the ticker and the website will kick back different ways to value the stock what’s the best way for that particular stock given their economic situation right now we’ve already completed the discounted cash flow version of the website we’re in the beta version of our dcf calculator but we’re gradually going to expand
It from there to other different other different types of valuing a stock and also financial statements ways to analyze companies things like that so if you’d like to sign up for that i will leave a link in the description below but for now let’s jump over to my investment portfolio so we’re going to kick it off with my first position and that was this position i
Took a little while back right in the middle of covid that was disney and last time i had reported on my portfolio well i had announced that my disney price was a just under 100 bucks per share since then i have actually averaged down a bit more and i’ve bought some shares when disney dipped below 100 per share last i saw disney’s trading at about the same price
Where my current entry price is so on average i’m about even with disney okay after that i had intel now intel i had bought back when there was a big dip after they ran into issues they ran into manufacturing issues and when they ran into those issues the stock had a huge jump off the cliff so i jumped and i bought some shares then at that time it was just below
45 bucks a share since then i have continued to average down in that stock bring it to just under 38 dollars a share so i went from about 44 to about 38. now i wanted to i’m just want to clarify with with everybody that i’m averaging down in stocks that look like over the long run they could be a good investment they seem to be trading at a value now and because
Of that well this is a stock that i want to hold i’m happy to hold for five or ten years intel is one of those companies disney’s one of those companies that i’m sort of bar i’m sort of borrowing the warren buffett method of if what if the stock market were to close for the next five years so the 10 next 10 years would you be happy holding these companies both of
These companies i’d be more than happy if i couldn’t get out of the position or if they didn’t trade at all so the idea here is buying businesses that i think can do well over the long run now i’ve also done a video on each of the companies that are in my portfolio i have this self-imposed rule that i’ll do a video i’ll only buy a stock after i do a video so i’ll
Let you guys know and then i’ll wait a couple days after i do the video before i jump in uh buy any stocks any new position so if you’re curious why i bought any of these stocks i try to explain it fairly thoroughly in each of the videos that i did previously okay so this company that i bought after i bought intel was more of a defensive play and that’s lockheed
Martin now lockheed martin at the time i had paid about 336 per share and represented at the time it was about a third of my portfolio now it’s about 10 of my portfolio that one i haven’t added any to because lockheed martin is way up at the time it looked like it was significantly undervalued right now it’s about fairly valued last i checked so it’s one of those
That i haven’t added to my position i’m only adding to my position if because this stock market’s been down so much and if i can get stocks that i liked at a higher prices well why wouldn’t i want to buy more as the price declines as long as assuming the fundamentals have stayed the same and in most and in pretty much all my cases they have okay moving right along
The next one is a more you know controversial company or call it you know a more troublesome company and that’s alibaba so alibaba previously i had paid about 122 dollars per share last time i did one of these videos again this stock has been way down largely due to geopolitical risks of the company and different problems that they’ve had and but i have averaged
Down my position some to a bit over 110 per share now this is one of those companies that i think fundamentally the company is good is strong i could see a decade from now the company being better but this one introduces other risks specifically geopolitical risks that the company has a role in but may not it may not be completely in their control you know intel
As an example i think if intel does their job and they can improve the quality of their products and they can improve their manufacturing and prepare themselves for their future i think they are largely in control of their own destiny alibaba could be but they may not be so i recognize there is some risk with that one so i’ve been hesitant to add too much to the
Position but for now it’s at about 111 bucks per share this dog’s down below 100 for now so i’m i’m down like many people are in this stock and i’m okay with that over the short one again this entire portfolio is intended to be a long-term portfolio okay next up i bought 18t so i bought at t and i had originally bought these shares at about 18 18 15 per share that
Is that was pre-spinoff of the warner uh the warner media division of their company so i had bought the shares and then they did the spin-off my spin-off adjusted price was about 1864. since then i’ve had it i have added a little shares bringing my average price down to a bit under 18 per share at t is one of those companies that i like the warner media spin-off i
Like that company independently i’ll come back to that in a minute but i also like at t on its own i think fundamentally i think that the warner media division the warner media part of their business was a drag i don’t think that they managed that well and i think them independently now is much better even at their lower dividend that that they’re currently paying
They dropped their dividend when they did the spin-off and i’m okay with that i actually think it’s better for the company so over the long run att’s a company that i’m a fan of and i’m happy to sit there so far all these companies outside of possibly alibaba we’ll see how that plays out but outside of that one i’m happy to sit there and hold these for a long time
And not worry too much about it okay next up we have activision ah last time i did an update of this stock uh of this of my portfolio i had announced that i paid about 63 bucks per share shortly after i bought the stock the microsoft announced that they were going to acquire them we haven’t heard much news since then so it’s been a really weird stock to own but
The stock jumped up to about 80 per share so i’m up in the position and i have not sold any yet because microsoft’s supposed to close the deal at 95 a share obviously there’s some risk the fact that it’s not trading anywhere near 95 per share implies that there’s some risk that this goes down now since i acquired my shares i know berkshire hathaway and buffett and
That whole group jumped in and bought a whole bunch of shares trying to play the risk arbitrage opportunity of closing the gap between 80 bucks or 75 wherever it’s at now going up to 95. that’s sort of why i’m sticking around in this one so this although i liked activision before the deal was announced i’m happy to sit here and hold it and see if the deal gets
Closed if it doesn’t i think big picture i i was happy with the price that i paid 63.40 i’m more than happy with that price so i’m happy to sit here and wait to see how it goes okay next up we have meta last time i uh had invested last time i updated this video i had paid about 220 per share this stock has continued to drop since then as it dropped i did average
Down to about 180 bucks 183 dollars per share so i’m still slightly down in the stock that’s my average price by the way that is all these updated prices are not well i had bought it at 220 and then i paid 183 no no i bought it at 220 and then i paid less than that i forget the new price i bought at 150 or something like that for meta my average my new weighted
Average price is the 183.90 for meta so when you see the new prices they are adjusted prices but the theory behind averaging down in so many companies that i’ve done it in a lot of the companies so far the theory of averaging down is every now and again the stock market runs through these enormous hiccups these pullbacks these recessions that happened in 2008 it
Happened in 1999. it happened in uh i believe 87 it happened before that i think there was one in the early 90s as well point is every now and again the stock market’s going up and then there’s a pullback and then it continues higher at some point the the united states the world is going to emerge from the troubles that they’re in right now and i truly believe
That investors that can position themselves well in this particular environment are going to be are going to be very happy that they did five years from now 10 years from now when the stock market is hopefully much higher than it is today hence the reason that as the stock market has fallen i’ve tried not to emotionally get rattled although i i acknowledge that
Could be difficult but i try not to get rattled and try to say okay do i still fundamentally like the company if i do i’m more than happy to average down fully expecting that yeah sure their free cash flow might be dipping right now but in five years i expected to be back up or in eight years ten years whatever the number is depending on the research i expect it
To recover so if you’re wondering why i added to so many different positions it is because timing the market is nearly impossible and i buy them and i’m thinking that’s a great buy and then the stock keeps dropping now the stock market in general has kept dropping but as it has i’ve instead of adding you know 10 new positions or five new positions i’ve rolled a lot
Of that money into old positions to try to average down and get better sort of better uh cost basis for the stocks that i really like okay up next is actually one of my favorite companies and that’s google so google’s a big piece of my portfolio and you can see that it right now represents about 16 of my portfolio and last time i had done this video i had actually
Paid almost 2500 per share now since then they did a 20 for one spin-off so adjusted my actual cost after the spin-off would have been about 124 per ship now i have averaged this one down as well and i’ve brought my average cost down to about 118. now this is one of those that if i i want to buy more but i don’t want the position to get too large relative to my
Other positions which is why i’ve hesitated i believe google’s in the 100 range right now so again i’m down in this position i’ve got a handful of these uh outside of maybe activision lockheed martin i’m up there’s a few of them that i’m up i got a couple others that i’m up but overall the ones that i’m down i’m trying to average down in but i’m also trying to
Keep the portfolio from getting too heavily diverse so too heavily concentrated in one stock google i have sort of gone a little bit nuts on it but again i think that google 10 years from now is likely to do be doing better than it is today it’s one of those companies that i’m more than happy to buy for value okay next up i added warner brothers discovery now i
Mentioned before that when i bought at t well at t spun off warner brothers discovery because of that i actually got one percent one percent of my portfolio was warner brothers discovery that’s you know we got shares for owning a t since and my average cost at that time was about 23 24 bucks per share for warner brothers had nothing to do with att warner brothers
They calculated average cost post spin-off was about 24 per share since then i have averaged down my average cost to about 14 per share i just recently did that in the past week or two because warner brothers discovery has dropped a decent amount now i had to i did a video on them not long ago like i said there’s videos on all the companies i’ve bought i won’t
Buy a company unless i first make a video on it so uh so i can explain why i’m buying or what i’m thinking but warner brothers is one of those companies that they’re trying to warner brothers discovery is pushing out they’re pushing together their platforms they’ve got a lot of work ahead of them so again i recognize the risk involved in this company and owning
This company they have to achieve the goals they’ve set out beyond them that they said are for themselves i’ve invested in this company thinking they can’t achieve it so i’m more than happy to sit here and hold this stock and see how it plays out over the next few years okay next up we have apple this one i kind of got lucky with so this kind of cash flow is my
Favorite way to value stocks it works very very well for large companies a company like apple where where disc where cash flow is somewhat predictable one of the keys to discounted cash flow is that you have to have a discount up right you have to have what is my required rate of return if i want to return five percent and we think they’re going to earn how much
Cash flow what do i have to pay today if i want to earn 10 what do we have to pay today my required rate of return was seven and a half percent i picked that rate because it was a premium over aaa corporate bonds as you may be aware since then since i was using that interest rates have gone up a decent amount so i increased my required rate of return from seven
And a half percent up to nine percent again trying to offset that now i have a premium of a triple a corporate bonds if rates keep going up i’m likely going to have to increase my required rate of return again well as that was happening i turn around i’m analyzing i’m do i’m using our discounted cash flow calculator and apple keeps popping up as a stock that
Looks like it is getting close to being undervalued that it drops down i end up jumping in and buying my shares it dropped below 141 that was where i was trying to get it to drop below 141 i got a fair value i believe of 145 at the time i jumped in and bought some and i got an average price of 140.76 and the stock bounced after that and i don’t think it’s back
Down there yet i think the stock’s up to one 45 146 147 something like that that one’s held up quite well but the reason why i say i got lucky is that like two weeks later i increased my required rate of return from seven and a half to nine and just like that apple was no longer undervalued so i was a little you know luck of timing if you want to call it that okay
That being said the next company that i added was citigroup now citigroup is it’s a small position i made it a half size position again video on this uh video a link to the video i made on that company in the description below but i had bought my shares previously at about 46 bucks per share since then the stock is a little bit below i believe a little below 40 low
40 something like that and i average down a bit to about 45 dollars and change now citigroup i bought again this company has been fairly stagnant for the past three years for the past few years the the management team has since then in the past few months even the past year has laid out a plan for how they’re you know they’re going to leave some businesses they’re
Going to go into some new businesses and try to grow the company and as i was reading through it and analyzing their numbers if they pull it off there could be some growth again and again this company looks like it could be a good deal at this price now i did not use disk on a cash flow for the bank because this kind of cash flow doesn’t work for banks banks don’t
Have normal types of free cash flow so there i used price to tangible book value and that’s actually going to be the second valuation method that we add to the website once we work out the kinks of the beta version of the website so if you want to come over and sign up to our investing website i will leave a link right here i’ll leave a link in the description
Below and if you have any questions about my investment portfolio every week we do private live streams in our investing community which you get access to if you sign up for the website and we go through my portfolio and a few other portfolios that we’re building so if you’d like to sign up i will leave a link in the description below thank you so much for sticking
With me all the way to the end of the video i really do appreciate it thank you and i’ll see in the next video
Transcribed from video
My Investment Portfolio UPDATE!!! By Learn to Invest – Investors Grow
