Re: Young Folk Portfolio ... Add On Buys
I had a good bit of cash built up in the YFP from having trimmed back overweight positions in KO, GIS and KMB a couple of weeks ago. I'm not selling out of those companies, but I didn't want overweight positions either, so I took some profits.
These moves were made in the taxable account, so they did generate a taxable event for 2022. In fact, I have already realized more gains in the past two weeks than I did all of last year. I'd rather not trim anything else going forward, I just don't have the losses to offset those gains.
With the cash I built up through trimming, I added to the following today.
ABT .. MSFT .. JNJ .. LMT .. NSC .. AAPL.
With the exception of AAPL, all of the other companies have announced earnings this week and all of them have beat earnings expectations and increased their revenues.
I am focused on earnings because the market is declining due to a combination of factors which include, overvaluations, expected higher interest rates, and inflation. Knowing that these conditions will cause all companies to correct in price, some of those price corrections will be what I refer to as accidental declines. This is where companies that are strongly performing as a business see their share prices fall due to an overall market correction, not an under-performance of the company business, and historically, these companies that are performing well bounce back quicker and stronger.
I will remain focused on those growing their earnings and increasing their revenues. |
