June/July Buy/Sells Update and Value strategy
My theme is/has been to identify & start to build positions in companies w/: Price/FCF < 12x, catalyst for growing those FCF & begin to build a 1%-2% portfolio position in a few new names for 2025.
Many of those types of stocks are classified under the U.S. small Cap sector. The value proposition is to find a small cap company that can grow their revenues (have positive FCF) and also pay a dividend.
AMNF has met all those metrics but still expensive at 19x earnings. I did make 3 buys this year, a 13% position add.
AMNF my largest % holder in this category at 3.17% and largest gainer over the years w/ 1st Buy in 2010 at $0.64/share & 14 different buys over 14 years (3 in 2024) +300% or about 16% annualized.
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For my new Buys have tried to find value in Price/Cash Flow at 12x or less; Several REITs and even many of the food stocks; KHC, SJM, CAG, BGS meet this metric.
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Top 5 holdings: (taxable account)
(other than ORCL these have been held over 10 years)
CVX 9.66%
AMNF 4.4%
BHP 4.13%
WMB 3.72%
ORCL 3.64% (started buying 2022)
Schwab has portfolio break down view & performance:
(For the total of all my Schwab Accounts both taxable & tax preferred - No of Positions 161
as of July 12, 2024)
U.S. Large Cap : 30% (20 positions)
CVX 8.64%
ORCL 3.61%
IBM 2.36%
MRK 2.27%
KLAC 2.17%
U.S. small Cap: 50% ( 116 positions)
AMNF 3.17%
WMB 2.99%
UGI 2.55%
O 2.04%
SRE 1.97%
International: 12% (28 positions)
BHP 2.96%
NGLOY 1.73%
PBA 1.21%
GOLD 0.94%
ENB 0.88%
Cash & Cash Investments 6%
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Large Sells:
FCX (peel off gains from 2019), WMB (peel off gains from 2020), LEG (sold high cost shares tax loss harvest)
other small sells: SBRA, EPR, GBX, QCOM, KTB. PAHC,JWN,LANDO (closed out this preferred), IFF, KR, HR (sold high cost shares), IBM, AU, NLOP (closed out this spin off), VZ, T, GOODN (sold 50% of this preferred), ABBV, UAN, TRTNpD (closed out this preferred), CUZ, GOOS,
LARGE Buys:
After some tax loss harvesting starting large Buys in:
INMD (7 small buys); AGCO (4 buys), BGS (4 buys), XRX ( 3 Buys), BFS (new position for this REIT 3 buys), KHC (3 buys), HBIO (3 buys), MTW (4 buys),
Other Buys: SOLV, BAX, SJM, TWI, AMNF, UNFI, CSAH, ADM, O, G, BMY, CSG, PUMP, UGI, CNH, MDT, GILD, GTN, VFC, PYPL, CNH,
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My approach fits for how I currently invest. Perhaps could have done better to just hold a mutual fund, but my approach is super tax efficient as I keep all of the long term gains inside the portfolio. I tax loss harvest a few time a year and off set that with peeling off a few of the the gainers as needed.
My total return has not met the one year $SPX returns but for that I do hold separate mutual funds at Vanguard for the tax deferred accounts. I just let Vanguard manage those.
My returns in the taxable portfolio do track the $SPX 5 year and 10 year returns.
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YTD returns have been extra ordinary for DOW +16.59%; $SPX 27.48%; NASDAQ +36%.
FWIW, I hope to see similar gains in some of my new REIT positions SBRA & HR and in INMD a medical product company.
Hope other value investors were able to profit from this huge run in the indexes and found some good value gems. I expect small caps and value to have a 'huge' run into the end of the year. |
