My $366k 28 Stock Portfolio Goes Through Some Massive Upgrades As I Play For Volatility Upside In February
Summary
- My portfolio, built specifically for my retirement ~20+ years from now, experiences some major shifts as I play for upside in oil and former market darlings.
- Making monthly contributions, even though they seem small at the time, makes all the difference in the world over time in helping create a valuable retirement egg.
- A portfolio built for individual investors to outperform the majority of money managers through diversity and risk with the goal to be worth at least $5-$7 million in retirement.
Kelly Sullivan/Getty Images Entertainment
It is my firm belief that 80% of money managers can't outperform the S&P 500 index over time due primarily to the fees they charge their clients. Each and every individual person intent on having the happiest retirement possible could and should take charge of their retirement portfolios and invest in simple index/mutual funds and/or a balanced portfolio like the one I have set up to maximize returns over decades of performance. My ratios and distributions are based on my book - Investing Better Than A Money Manager: The Rise Of Retail Investing.
Past Performance
Here is briefly how my portfolio evolved from its inception when I became more of an active investor in 2014 in the market until now. Notice, I spent several years before 2014 putting some funds into the market now and then at random as I finished school and got married and started a family etc., which I didn't really follow or record.
| Year | Welsh Portfolio | S&P 500 |
| 2014 | $77,053 | |
| 2015 | $81,233 | -0.81% |
| 2016 | $91,494 | 9.64% |
| 2017 | $142,363 | 19.38% |
| 2018 | $162,607 | -6.29% |
| 2019 | $230,093 | 29.01% |
| 2020 | $316,104 | 16.28% |
| 2021 | $402,037 | 27.04% |
Contributions
Contributions make up a vital component of your portfolio, especially when you are starting out, as they are the building blocks of tax advantaged savings for retirement. The more money you have, the more concern you should have with taxes. This is why when you start out investing, you should try to add to accounts like IRAs ASAP instead of putting the money into regular taxable investment accounts.
Contributions | IRAs | 401(K)s |
Jan 2022 | $0 | $0 |
Feb 2022 | $0 | $500 |
YTD CONTRIBUTIONS | $0 | $500 |
Here is how my portfolio is performing compared to the SPDR S&P 500 Trust (NYSEARCA:SPY) over the beginning of 2022.
Fund | SPY | Welsh | Welsh Minus Contributions |
% Gain Jan 2022 | -5.32% | -8.12% | -8.12% |
% Gain Feb 2022 | -3.62% | -0.88% | -10.15% |
YTD GAINS | -8.09% | -8.12% | -8.12% |
Regular contributions to your retirement portfolio help your portfolio to grow even on less than ideal months where you fail to outperform the S&P 500. Not every month will be a winner, but regular contributions can help make anyone's performance look great over time.
My portfolio is divided up to start 2022 at around 73% stocks and around 27% mutual and index funds with the goal to increase stocks to over 80% of my portfolio over time. Due to the recent Russian invasion of Ukraine, I have sold off a bunch of my international stocks for now as domestic is the safest place to play while things play out globally at this time. My current setup has swayed to 93% domestic exposure and 7% international. I have about 2.6% of my portfolio in bond mutual funds so that I know how they work and to have at least a little exposure to this sector over time. I plan to have bonds be a very small portion of my portfolio up to right around age 65. Diversification lifts my whole portfolio's returns over time, so finding the best stocks in every sector is a goal for me each and every year. Here are some of the main changes since my last portfolio article in January of 2022.
Welsh Portfolio | Stocks | Index/Mutual Funds | Bonds | Domestic | International |
Jan 2022 | 73% | 27% | 2.6% | 82% | 18% |
Feb 2022 | 74% | 26% | 2.6% | 93% | 7% |
Here are the details of my personal ~$366K portfolio then, based on values of approximately $40K, $400K, and $4 million broken down by sectors with brief descriptions of each stock in each sector. The best thing about my portfolio setup is that it is scalable so that people interested in following a similar path can set up their portfolios to follow my path no matter how small or large their holdings are. With fee-free trading and the advent of fractional shares, investors are more capable than ever in setting up amazing portfolios even when starting from scratch.
The Information Technology Sector (Aim = 15% of my Stock holdings)
2022 Allocation Aim = 18%
Stock | $40K | $400K | $4M |
QCOM | $1,080 | $10,800 | $108,000 |
DELL | $280 | $2,800 | $28,000 |
VMW | $280 | $2,800 | $28,000 |
RBLX | $770 | $7,700 | $77,000 |
% Portfolio | 8.9% |
1. QUALCOMM (NASDAQ:QCOM) is a major technology solutions provider for companies like Apple and will be an integral part of upcoming transformational secular revolutions like 5G. I always like to have at least one chip company in my portfolio at all times.
ACPS = $61.92
2. Dell (NYSE:DELL) is a legacy holding which continues to aggressively seek M&A opportunities like the value acquisition of the $67B EMC deal and the spin-off of the hybrid cloud giant VMware (NYSE:VMW) at the end of October 2021 which it formerly owned ~80% of the stock of. Michael Dell is a shareholder winner through and through, and following in his stock footpaths I think is a good long-term decision. The VMware spinoff should allow Dell to deleverage significantly while allowing it the free cash flow to hit its remaining debt burden opportunistically before Michael Dell moves on to his next future M&A opportunity.
ACPS = $21.52
3. VMware (VMW): I acquired VMware as a spin-off from Dell. At this time, I'm undecided if I want to maintain both positions or have one position based either in Dell or switch from that legacy holding all into VMware. I will figure this out later in 2022 when I do my annual IRA contributions.
ACPS = $51.57
4. Roblox (NYSE:RBLX) is a teen gaming platform that came public through a direct listing in March of 2021. My hope was that it did not come out of the gate as hot as earlier IPOs DoorDash (NYSE:DASH) and Airbnb (NASDAQ:ABNB), which were too expensive for investing in for me personally when they first premiered. I was very happy to get in at the IPO price of $64 a share when it premiered for a large holding in my portfolio. I always try to have an eye on what younger generations are loving and this platform is expanding and growing phenomenally. Also note that Facebook (NASDAQ:FB) at the end of October 2021 announced that it is changing its name to Meta Platforms Inc. to embrace the future of the Metaverse that is central to what Roblox is. Give me one of the originators and pioneers in the space any day personally over Facebook and its social concerns. Willing to build my Roblox position over time as it could be a game changer if the Metaverse becomes as big as Facebook believes it will be.
Doubled my position in Roblox in January of 2022 as I dropped a lot of sector weight with my Apple stock sale. Expanding my exposure to the Metaverse is a no brainer for me as a believer in its potential over the coming decades. I will be expanding this position more especially at these prices before I start rebuilding my Apple position again.
ACPS = $57.20
Sold: Apple (AAPL) stock got sold to buy the massive opportunity in Facebook stock as Meta (FB) collapsed ~40% after its latest earnings call. The FAANG stocks continue to be some of the best stocks in the market so I usually only sell these over time to buy another similar one. I'm sure I'll start buying Apple stock again here in the near future but right now with all the chaos in the market looking more for short term opportunities and not so much as forever stocks like Apple is usually for me except when something like Meta surfaces.
They say never get married to your stocks and I just showed this by selling my highest conviction stock over the coming decades in Apple. However, I think that an impressive Facebook recovery could easily come in the next couple of years allowing me to hopefully rebuy my Apple position if I want or something else with a terrific gain from when I sold Apple to buy Facebook.
The Health Care Sector (Aim = 15% of my Stock holdings)
2022 Allocation Aim = 15%
Stock | $40K | $400K | $4M |
ARWR | $2,640 | $26,400 | $264,000 |
MDT | $410 | $4,100 | $41,000 |
PFE | $380 | $3,800 | $38,000 |
SMMT | $780 | $7,800 | $78,000 |
% Portfolio | 15.6% |
5. Arrowhead Pharmaceuticals (NASDAQ:ARWR) is my 2nd largest individual stock position as an RNAi juggernaut entering key Phase 2 and 3 trials in 2022. A lovely balance sheet with key partnerships with Janssen (NYSE:JNJ), Amgen (NASDAQ:AMGN), Takeda (NYSE:TAK), Horizon (NASDAQ:HZNP), and a new ~$1 Billion licensing deal in November of 2021 with GlaxoSmithKline (GSK) significantly de-risk its TRiM platform as it continues to expand into additional cell types. Amgen continues to slowly progress Olpasiran (AMG 890), its collaboration candidate with Arrowhead along with a successful Janssen update in November 2021 on JNJ-3989 for hepatitis B virus. Takeda will help co-develop and co-commercialize Arrowhead's lead candidate ARO-AAT preparing Arrowhead for independent commercialization of its wholly owned candidates while it continues to find partners for new candidates like the recently revealed ARO-XDH with Horizon. Arrowhead partnered with GlaxoSmithKline for its NASH candidate ARO-HSD, proving once again its TRiM platform is in big demand as it continues to expand its pipeline so fast that it can't progress all of its candidates by itself as a smaller sub $10 billion company.
A setback in its ARO-ENaC candidate led to a tremendous buying opportunity in the stock in 2021. ARO-ENaC is neither the company's lead product nor a very important one in Arrowhead's ever growing pipeline of candidates. The company has not given up on this candidate though and seems likely to pursue the candidate again as it has updated its clinical studies info on it in January of 2022 with a Phase 1/2 study which is scheduled to end in 2022 as well.
I used this latest opportunity to expand my shares of Arrowhead again from 410 shares up to now 530 shares. Arrowhead and a lot of the Biotechnology sector continue to trade at horribly depressed prices as evidenced by the sector as a whole over the past year. I think this is a perfect opportunity to buy a phenomenal asset poised for significant upward momentum as an individual stock as well as the sector as a whole which looks due for a rebound in 2022 hopefully.
Expanded my shares in Arrowhead again in January of 2022 by buying an additional 70 shares bring my total up to 600 shares. Baby steps on this conviction stock for me as I continue to add shares as the company continues to sit around 52-week lows even as it successfully continues to expand and advance its marvelous pipeline.
ACPS = $48.16
6. Medtronic (NYSE:MDT): Health care device maker that I think has significant upside from COVID-19 variants for years to come. Hospitals will need the best equipment companies like Medtronic provides as health issues from COVID-19 could and seem poised to persist for years.
ACPS = $83.13
7. Pfizer (NYSE:PFE): A healthcare behemoth with a big stake in the fight against COVID-19. Seems like a great potential long-term winner at a great value compared to some of its peers. COVID's recent resurgence with the Omicron variant has led Pfizer to have its best month in decades while continuing to rally into the end of the year as other stocks fizzled. All the Pfizer execs are buying yachts, so why not make a few dollars off the stock as well.
ACPS = $35.86
8. Summit Therapeutics (NASDAQ:SMMT) did a very suspicious move in August of 2021 by combining its two Phase 3 blinded pivotal trials for its ridinilazole candidate for clostridioides difficile into one study. This was doable as both studies were at ~ 50% enrollment but were apparently not enrolling fast enough for management's liking. However, in September, investors found out that this change in the study was not pre-approved by the FDA, so the trial results won't be enough for the FDA moving forward.
On top of all this, Summit investors found out in late December of 2021 that the company's data results for its ridinilazole candidate didn't meet all of the hoped for primary endpoints, resulting in another deep drop in the company's share price. This is a perfect recipe for dead money, so I'll be content to sit on my small position for a while now as I figure out what to do about it moving forward.
Did a massive stock buy of this stock in January as it settled around $2.00 a share. Went from 850 shares up to 2,850 shares as I think the stocks upside is attractive now again. With its ability to raise cash on will with Rights Offerings backed by company Chairman and CEO billionaire Robert W. Duggan, with a 70+% ownership of the company, downside risk is markedly mitigated in my opinion. The postponement of the latest rights offering means something newsworthy could be coming in the near future that was not compatible with a rights offering at this time. The company should be fine cash wise until it can do its next rights offering after whatever coming potential news passes.
Mr. Duggan has successfully sold companies in the past for huge profits and new ownership stakes by company's like Polar Capital Holdings PLC. could result in a massive upside swing in the company's stock if the incoming news is beneficial to stockholders. Time will tell.
ACPS = $3.51
Sold: Eli Lilly (LLY) was sold as I needed to raise funds from the Healthcare sector to boost my Arrowhead position at this opportune time. Eli Lilly has held up remarkably well during the biotechnology sector meltdown even though it too is decently off its highs. This move was mostly a move from safer assets to riskier assets at this time with the goal to ultimately build up my former Eli Lilly position again in the coming year from Arrowhead proceeds or just incoming funds in general.
The Communication Services Sector (Aim = 15% of my Stock holdings)
2022 Allocation Aim = 10%
Stock | $40K | $400K | $4M |
DIS | $1,630 | $16,300 | $163,000 |
WWE | $940 | $9,400 | $94,000 |
GOOGL | $810 | $8,100 | $81,000 |
FB | $2,420 | $24,200 | $242,000 |
% Portfolio | 21.5% |
9. Disney (NYSE:DIS) will crush Netflix (NASDAQ:NFLX) in growth over the coming decades in my opinion as its streaming platform continues to grow by leaps and bounds. Forever stock for me as I am looking now to add cheap shares again if I get additional incoming funds after boosting my Apple stock position. Was a pretty tough month for Disney and rival Netflix to start the year for sure though.
ACPS = $171.78
10. World Wrestling Entertainment (NYSE:WWE) is one of the few remaining live event media stocks with global growth, while always a potential takeover target from juggernauts like Disney. Its newest Peacock deal helps bring its brands into even more households. This position continues to grow as I think the company is on track to sell itself in the next couple of years, hopefully for a great premium. I bought more WWE shares in August of 2021 and added a few more shares in September of 2021 as I continue to add shares here and there at these terrific prices. Considering it's well off of recent highs of the past few years as a former ~$100 stock, I think it continues to be a great value even as COVID persists.
ACPS = $51.68
11. Alphabet (NASDAQ:GOOGL): One of the FAANG names producing amazing results as always. I have a decent amount of exposure to the FAANG names with my mutual funds, but it is hard to have too much of these juggernauts.
ACPS = $2,335.36
12. Meta (FB) was my largest and most memorable move in February of 2022 as I sold my top conviction stock in Apple (AAPL) to purchase the ~40% drop in former market darling Facebook. With Apple and Alphabet (GOOGL) as already large parts of my portfolio I couldn't really justify having Facebook also in my portfolio as I want to own FAANG stocks but not just be a FAANG ETF per se. The massive selloff in Facebook though created an opening that I could not resist so buying into that crash and burn meant having to sell either Apple or Google stock really to keep my other positions. Having seen Facebook recover amazingly from past sell-offs meant that I was looking for a larger bet which meant the easiest path was to sell my Apple stock. Years from now I see Facebook doubling in value from its current market value far quicker than Apple at its recent highs which led me to a necessary move in my opinion. The obvious play potentially for me is when Facebook recovers enough over the next year or two to where it is more appropriately valued to past valuations, to sell Facebook to buy back my Apple stock again with an even larger position. Or, of course, I might just like Facebook better at that time and toss Apple out as a former darling and completely move on from it.
I am not concerned about Meta's nosedive because most of the concerns seem obvious to me. Competition is heating up from companies like TikTok and Meta is changing as we speak to adapt its platform to what users are now demanding resulting in a short term margin hit during the conversion. Investments in future technology like the Metaverse will be expensive and take a decade or more to potentially bear real fruit. This not a surprise to me as a big believer in the Metaverse. It very likely will be a big part of the future but it will take lots of time and money to get there with companies like Meta hopefully leading the way.
Everyone loves to hate Facebook but everyone uses it and it is a money creating machine and that fact will not change one iota from this most recent crash. Mark Zuckerberg is a visionary whose big bets in the past have created majestic shareholder returns. Sign me up for a 40% discount any day of the week and twice on Sunday. Finally here's a graph comparing Apple's and Meta's performance overtime since I bought and sold them on February 8th 2022.
ACPS = $222.00
The Financial Sector (Aim = 15% of my Stock holdings)
2022 Allocation Aim = 18%
Stock | $40K | $400K | $4M |
GBTC | $3,960 | $39,600 | $396,000 |
HSBC | $260 | $2,600 | $26,000 |
% Portfolio | 15.6% |
13. Bitcoin (OTC:GBTC) (BTC-USD) is digital gold in my opinion and the future of finance as a potential bedfellow to or eventual replacement of not only the U.S. dollar, but to all fiat money in the coming decades. I plan on holding Bitcoin stock for the next 20+ years and to very rarely if ever sell shares, so month to month performance means little to me at this point. I plan on it being a long-term top 3 stock position in my portfolio at all times and would consider adding to my giant position if the coin drops below the $25K level as I just added more shares of Grayscale Bitcoin Trust stock in November of 2021.
Its horrendous start to 2022 is one of the main reasons for my retirement's underperformance in January. Volatility does not bother me though with a 20+ year time horizon and my beliefs about its game changing potential for the global financial economy.
ACPS = $31.46
14. HSBC Bank (NYSE:HSBC) is a legacy holding that might finally see some upside if the United Kingdom can ever get Brexit resolved and new trade opportunities sorted out. That of course, might be a big if. Looks to be a stock on the chopping block when I do my IRA contributions for 2022.
ACPS = $48.91
The Consumer Discretionary Sector (Aim = 6% of my Stock holdings)
2022 Allocation Aim = 8%
Stock | $40K | $400K | $4M |
TSCO | $610 | $6,100 | $61,000 |
DKNG | $590 | $5,900 | $59,000 |
RIVN | $330 | $3,300 | $33,000 |
% Portfolio | 5.7% |
15. Tractor Supply Company (NASDAQ:TSCO) quietly continues to perform as one of the best companies in retail mostly immune to Amazon's dominance. Its acquisition of Petsense makes a lot of sense now, especially with the explosive growth of everything pet in the wake of COVID-19.
ACPS = $79.76
16. DraftKings (DKNG) is a stock that has a bright future in my estimation as a leader in online gambling and sports betting. A difficult market with consolidation eventually needed means lots of headwinds such as promotional activity as each company tries to gobble up market share especially in newly legalized states. However, its massive drop from recent highs as a leader in the space led me to finally buy into the narrative as the stock at this price is just too cheap to ignore. Regular position to start with more to be added if possible in future months.
ACPS = $17.37
17. Rivian Automotive (RIVN) was my big purchase towards the end of 2021 as I had been waiting for this IPO throughout 2021. I tried to get in at around the IPO's initial ~$80 offer price but was not able to get any shares then as it started out at about $115 a share. Being patient a couple days didn't improve my odds much, so I decided to bite the bullet and buy shares at the higher price. Sometimes you have to pay more for what you want, but I got the position I wanted and am happy now to sit on it even though the price has now dropped down low enough where I would gladly add more shares if I didn't have more pressing areas.
ACPS = $122.36
Sold: Norwegian (NCLH) and Alibaba (BABA) got sold because of the developments in February which caused major volatility in many investors portfolios. Russia's invasion of Ukraine means higher energy prices for longer which I do not like any more for my reopening play in Norwegian Cruise lines. Oil going to $100 or more in the coming months will be a real headwind to Cruise margins after they had such a hard time surviving Covid in the first place. Count me out of Cruise ship and Airline stocks until oils volatility settles down again and prices come down to more reasonable levels.
I sold my Alibaba stock in response to Russia invading Ukraine as I want to limit my international exposure in this time of uncertainty. With the world focused on Russia, China might decide that it is time to take some actions in Taiwan, Hong Kong, or even with Russia that might be looked at unfavorably by the market. The obvious pivot here would normally have been to sell Alibaba and buy Amazon (AMZN) but my recent massive purchase of Meta (FB) stock means I already have tons of exposure to FAANG stocks compared to where I want to be.
The Consumer Staples Sector (Aim = 6% of my Stock holdings)
2022 Allocation Aim = 6%
Stock | $40K | $400K | $4M |
PG | $590 | $5,900 | $59,000 |
PEP | $520 | $5,200 | $52,000 |
GIS | $670 | $6,700 | $67,000 |
% Portfolio | 6.6% |
18. Procter & Gamble (NYSE:PG) is a legacy holding that sports a decent growing dividend along with many best in class brands like Olay, Head & Shoulders, Dawn, and Charmin. Always nice to have some stalwarts for the upcoming recessions and depressions.
ACPS = $92.59
19. PepsiCo (NASDAQ:PEP) is a phenomenal drink company with brands like Pepsi-Cola, Gatorade, and Tropicana along with amazing growth in the snack category with Frito-Lay that, in my mind, sets it apart from competitors like Coke (NYSE:KO).
ACPS = $106.77
20. General Mills (NYSE:GIS) is a legacy holding for me with a great dividend that experienced a huge turnaround during COVID-19 with its brands, including its $8B acquisition of Blue Buffalo in 2018. Its former debt concerns have mostly evaporated as it has shored up its balance sheet and continues to benefit from the stay-at-home movement. However, recent inflation concerns and cost issues have put a damper on the stock in the near term as COVID variants continue to arise and supply disruptions persist.
ACPS = $59.84
The Industrials Sector (Aim = 6% of my Stock holdings)
2022 Allocation Aim = 6%
Stock | $40K | $400K | $4M | |
J | $1,100 | $11,000 | $110,000 | |
SPCE | $360 | $3,600 | $36,000 | |
% Portfolio | 5.4% |
21. Jacobs Engineering (NYSE:J) is a legacy holding I have loved for years. A long-time no-debt company that makes super-smart acquisitions. It now has very low-debt and initiated a small dividend which it should be able to grow annually over the coming years like it did in January of 2022 by 10%. Its focus on carbon neutrality and diversity in its workforce makes it a prime target for the younger generation. Jacobs could also experience sustained tailwinds for years due to Biden's infrastructure bills.
ACPS = $68.41
22. Virgin Galactic (SPCE) looks ripe and tasty for another re-entrance at its current price. I love Virgin Galactic's volatility as I have made good money in the past buying low and selling high. Commercial space flight for Virgin Galactic looks probable for the end of 2022, so I don't mind getting in now as I hope to potentially build the position over 2022, especially if it stays around $10 a share.
ACPS = $13.21
The Materials Sector (Aim = 6% of my Stock holdings)
2022 Allocation Aim = 3%
Stock | $40K | $400K | $4M |
CLF | $950 | $9,500 | $95,000 |
% Portfolio | 3.5% |
23. Cleveland-Cliffs (NYSE:CLF) is an Iron Range stock that acquired AK Steel at the end of 2019 and, more recently, announced the acquisition of ArcelorMittal (NYSE:MT) in late 2020 in a deal valued at $3.3B. Cleveland-Cliffs is well on its way to becoming a fully integrated steelmaker. A bipartisan or reconciliation infrastructure bill or two should do wonders for the iron and steel markets in the coming years as they continue cashing in on amazing pricing amid high demand even as China slows down production to prepare for the Olympics. Sold a chunk of my shares in Cleveland-Cliffs as I wanted to lower my exposure to the materials sector in 2022 and it's my only holding in the sector. I still love the stock and have no plans to sell anymore, but wanted to boost my exposure elsewhere.
ACPS = $22.82
The Energy Sector (Aim = 6% of my Stock holdings)
2022 Allocation Aim = 8%
Stock | $40K | $400K | $4M |
PBR | $350 | $3,500 | $35,000 |
HAL | $530 | $5,300 | $53,000 |
USO | $2,020 | $20,200 | $202,000 |
% Portfolio | 10.8% |
24. Petrobras (NYSE:PBR) is a Brazil-based oil play with lots of potential if it can get past its scandal-ridden past. Unfortunately, Brazil President Bolsonaro recently named General Joaquim Silva e Luna to replace CEO Roberto Castello Branco, resulting in a huge crisis of faith in the company in its latest scandal. With that scandal now in the past, Petrobras should be able to benefit nicely from high oil prices that continue to climb. At least it is doing a great job eliminating debt, which means it could be a long-term winner regardless of politics on its current course. With energy and oil prices climbing to highs not seen in years, stocks like Petrobras, with its phenomenal dividend, could result in a great portfolio boost over the coming years if the oil and natural gas market stay elevated
I sold 87.5% of my Petrobras holdings in February to bet on the more explosive upside of the United States Oil Fund (USO) after Russia invaded Ukraine. I now think $100 oil over the summer and possibly beyond has a lot higher chance of repeatedly happening and I wanted to make a bigger bet with a more volatile oil stock in this situation. Not sure at this time if Petrobras will continue to be a small holding over the coming years or if it will be worth building the position back up again.
ACPS = $10.88
25. Halliburton (NYSE:HAL) is a U.S.-based oil service company that dominates services in the North American market. Small position with no real plans to expand even though it has been on fire to start 2022.
ACPS = $36.48
26. United States Oil Fund (USO) is a fund based on futures contracts for oil delivery. It is a higher volatility play on oil prices as sudden increases or decreases in oil prices will be immediately seen in this stock whereas traditional oil companies won't see that great of move in their stock prices as it takes months for oil prices to impact quarterly earnings reports. Long USO here is a play on oil for whatever reason going up and over $100 a barrel in the short term or potentially even to shock levels like $120, $150, or even $200 a barrel levels if the world goes to war or major oil disruptions hit the market for whatever reason coinciding with a high demand summer driving season.
ACPS = $66.11
The Utility Sector (Aim = 5% of my Stock holdings)
2022 Allocation Aim = 3%
Stock | $40K | $400K | $4M |
| DUK | $1,000 | $10,000 | $100,000 |
% Portfolio | 3.7% |
27. Duke Energy Corporation (DUK) got bought again in February as I boosted up my depleted Utility sector again for future opportunities. February market volatility provided me with plenty of sell and buy opportunities but it's also always nice to have some reserve funds for the next big opportunity. Love Duke's market position and its attractive ~3.93% dividend. Great to own a stock like Duke that I can sell at the next drop of a hat especially with the market in turmoil for the foreseeable future. Always try to have a reserve ready for future opportunities.
ACPS = $99.50
The Real Estate Sector (Aim = 3% of my Stock holdings)
2022 Allocation Aim = 3%
Stock | $40K | $400K | $4M |
AMT | $710 | $7,100 | $71,000 |
% Portfolio | 2.6% |
28. American Tower (NYSE:AMT) is a premier U.S. cell phone tower company aggressively expanding globally across a few more continents. 5G evolution could be a lucrative tailwind for years to come. Can't think of a reason to add another real estate play, so I just plan to keep adding to this holding over time.
ACPS = $111.38
Bonds (2% of my Stock holdings)
This asset class is currently satisfied by my mutual fund holdings.
My top 10 Holdings and Percentage of my Portfolio
Stock | Sector | % Portfolio |
Bitcoin | Financials | 10.8% |
Arrowhead | Health Care | 7.2% |
Meta | Communications Services | 6.6% |
USO | Energy | 5.5% |
Disney | Communications Services | 4.5% |
Jacobs | Industrials | 3.0% |
QUALCOMM | Info. Tech | 3.0% |
Duke | Utilities | 2.7% |
Cleveland Cliffs | Materials | 2.6% |
| WWE | Communication Services | 2.6% |
Total % of Portfolio | ~48.5% |
Stock Watch List: Stocks I am looking to add to my portfolio or add shares to in the coming months potentially.
1. Deep value stocks with tremendous cash flows and future opportunities like Meta (FB), DraftKings (DKNG), Roblox (RBLX), and Arrowhead (ARWR) even as I always contemplate adding to my Bitcoin (OTC:GBTC) holdings.
Staying diversified across all sectors of the economy while making larger bets on your favorite stocks is a great way not only to potentially beat the market, but also have fun doing it. Stocks are one of the best ways to build wealth for retirement, and everyone should have the opportunity to share in the success of the best companies the world has to offer. Best of luck on another productive and lucrative year in 2022.
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GIS, PG, PEP, PBR, USO, HAL, GBTC, HSBC, ARWR, PFE, MDT, SMMT, J, SPCE, CLF, DUK, QCOM, VMW, DELL, RBLX, FB, DIS, GOOGL, WWE, DKNG, TSCO, RIVN, AMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Or, you can simply save at a good rate and employ a solid dividend growth strategy, reinvesting dividends, with minimal trading/market timing. Probably the opposite of taking risk.
I don't time the market but invest in major trends. If at some point I am in 50-75% cash, I am just waiting.