| | | I still own stocks I bought in the late 80's and early 90's but none were based on GN value Buys. One was TX because they paid a good divided. I stil own those shares in CVX. (CVX acquired TX)
Another was HD, which was a value Buy w/ shares bought between $28-$32 I liked the company as in the 90's I was flipping real estate and HD was our go-to store for everything. I had a large position for me but needed the cash to buy other property flips. I think I sold out of HD at/near $38/share.
This was one I should have held. So yes, some of these value buys can be multi baggers. I still own most of the shares from your penny play pick AMNF. I think my cost basis is around $0.69/share and they never missed a dividend. At the time it met my value criteria but it was not a supper discounted value play. They had no debt, a history of positive earnings, paid a dividend and good prospects for growth. All good things that you rarely see in a micro-cap stock.
After over 35 years investing, I like to find the deep discounted value Buys, that have company specific problems and a good story. I may only find 2-3 a year and even some of those get sold if I see no progress after 18 months. I typically build a 2% portfolio position in each new valur Buy candidate stock and will exit the position after around 2 years if I believe they are at/above fair value. Sometimes I just peel of a few shares (starting w/ my high cost lots) which I use to fund other value Buy candidates.
You also find more value candidates when we get these huge corrections. What was a good value Buy in September 2018 are much better today. FWIW, I added to NWL today at $18.31/share (last value Buys in the $21-$22 area June/July 2018) and want to double my position on any price below $17.50/share. NWL pays a 5% dividend too.
I also been building up my shares in ABX one of the largest U.S. gold producers w/ an add at $13.13/share today ( I made two buys this week). ABX is not a true value Buy unless you believe the metal Gold is undervalued. My premise is that Gold is worth north of $5K/oz if/when we ever go back to the gold standard, we see double digit inflation and/or The Fed is abolished and the US Treasury issues United State Notes (backed by gold) to replace Feberal Reserve Notes. Russia and China have been buying gold in the last 24 months too. ABX would be a 3 bagger if any of these Black Swann events occured. I also get a 2.17% dividend slightly more I am getting at my Credit Union at 2% in their savings account.
My first Buy in ABX was about 3 months ago and that lot is +23%.
My Dad was not the true Gold bug, but he invested in natural resource stocks. I still own some BHP that was given to me in the early 90's. He also invested in gold coins buying Kugarands in the $250/oz-$300/oz area during that period too. BHP out performed as it always paid a good dividend and at the current price is a 3.5 bagger in the portfolio. I sold some shares in the 2011 period in the high $80's and peeled off a few more shares in 2014 at the $69/share price area and used the proceeds to diversify into other value candidate Buys. BHP today is my No 2 portfolio position behind CVX. Both of these stocks I have held close to 30 years.
I do have some long term core holdings and those have performed well. However, I really do not Buy today and expect to hold 10 years or more but probably would be wise to keep a few shares of those that have shown steady growth. MSFT is one I let get away as was ORCL.
Have a Happy New Year and keep digging up those value Buys in 2019.
EKS |
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