Saturday, November 13, 2021


 After spending the past five months covering the costs of my mom's care, I finally got to reimburse and also invest more to cover her ongoing care.   

In the past, I decided to balance out my portfolio by limiting my ownership to about $4,000 for each holding.  Of course there were some exceptions, but my overall goal was to have some balance.  Once I hit that $4K, I would move on to others.   

I did this because when I first started this investing thing, I had all my eggs in one basket.  Then I had 2 baskets...  then I decided that was totally idiotic, and diversified the stock to about 30 companies.  Then 40.  Then 50.  Now I'm up to about 100 different holdings.

This provides a strong buffer in case some company goes tits up.  If one of my 100 companies falls into the abyss, I only lose more or less 1%.   It does also mean that I get to experience a few big stock pops every year.  It's all in moderation and relatively safe.

Usually when I get some cash from dividends, I will look for the best value at the time and invest in that company.  Now that I received a chunk of funds, it is time to go shopping.   

This time though, I decided to increase the $4K limit to $5K.   Instead of taking my time to research 100 companies, I decided to top many of them off at $5K.  I figured if I already liked it enough to hold about $4K, I can bump it up to $5K.  Spending an eternity looking for the best deal of the day would never end and would lose out on gains.  So I just went down the list alphabetically, took a quick glance, and usually bought some shares.  I did skip some where I just missed an ex-dividend date or was really overvalued.   Eventually they will look better.  

To sum it up:  I made 17 stock purchases totalling $80,188.50 that will add $1,544.51 to my annual dividends.   That's a huge day.  That adds $0.17 1/2 cents per hour of income, whether I am working, sleeping, or just living.   Just for being alive.  Every little bit counts.

 So here is my list of purchases:  

The big purchases of Target (TGT), Bank of America (BAC), Discover (DFS), and Williams-Sonoma (WSM) were the replacement of the holdings I sold back in July.  I promised myself to make them whole once again.

I will be doing this again during this next week with the rest of my holdings.  Then the compounding will really kick in.

I will be updating the month end buys in early December and should be quite the post.

No comments:

Post a Comment

Please leave a comment. Just be respectful of each other. We're all here for the same reasons.... Thanks!