Dreams Of Compounding - Portfolio Check-In

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In February, I initiated sum of my ain brokerage portfolio. Transparency is key. I person nary worth to supply by contributing to this tract unless I tin backmost up my recommendations pinch existent results utilizing my ain money. For that reason, I'll beryllium covering my ain portfolio connected a monthly ground which will springiness an overview of nan decisions I made, why I made them, and my existent strategy.

Portfolio and Strategy

Portfolio worth (as of March 2nd.): $5,805.47

Weekly contribution: $200

Weekly recurring investments: SCHD - $66.50, JEPI - $33.25, BOND - $20

Pre-defined investments: UPRO and TQQQ - bargain $5 if it drops 5% connected immoderate fixed day. This magnitude will summation to $10 erstwhile nan portfolio equilibrium exceeds $10,000.

Ticker % of Portfolio Shares Cost per share Cost basis Market Value (as of March 2nd) Current Gain (Loss)
(SCHD) 37.44% 29.136536 $76.64 $2,233.02 $2,173.59 $(59.43)
(LOW) 19.44% 5.784514 $209.85 $1,213.88 $1,128.56 $(85.32)
(JEPI) 18.81% 20.397252 $54.91 $1,120.01 $1,092.27 $(27.74)
(ADBE) 12.06% 2.0998 $328.49 $689.76 $700.29 $10.53
(BOND) 10.13% 6.506518 $92.98 $604.98 $588.38 $(16.60)
(UPRO) 1.32% 2.16433 $34.63 $74.95 $76.86 $1.91
(TQQQ) 0.78% 2.072812 $22.50 $46.64 $45.52 $(1.12)

I person play contributions funded by my 9-5, which I past divided into 2 diverging strategies. I precocious began a play publication of $150, but acknowledgment to an 11.5% raise successful my 9-5 I was capable to summation that to $200/week! As such, my main equilibrium is group to turn by $10,400/year. My extremity is income maturation pinch SCHD, income procreation pinch JEPI, and main protection pinch BOND (This is my emergency fund).

I besides person a pre-defined strategy to acquisition leveraged scale ETFs UPRO and TQQQ. Basically, immoderate clip these autumn astatine slightest 5% connected a fixed day, I bargain $5 worthy (the acquisition magnitude will summation arsenic my portfolio worth increases).

Individual Equity Purchase Plan:

These are nan companies I'm actively monitoring and researching. The listed value is what I see a separator of information value from their estimated intrinsic value. I usage very blimpish numbers successful my estimates for my ain bid of mind.

Adobe (ADBE): $351.41 - Read my caller article here. Since writing, I've utilized an updated valuation exemplary which I judge is simply a much meticulous reflection of nan existent intrinsic worth (my valuation present is different than successful nan article).

Berkshire Hathaway (BRK.A) - $494,161.41 - Revised down from my estimate successful my erstwhile article. I overestimated nan maturation rates from 2026-2032, truthful this revised estimate is much meticulous I believe.

Block, Inc (SQ) - $55.94 - Read my caller article here.

Lowe's (LOW): $201.40 - Read my caller article here.

Taiwan Semiconductor (TSM): $85.73

Tesla (TSLA): $142.35

February Transactions

Transaction Type Ticker Shares Sale / Purchase Price Cost Basis Profit from Sale Average Price per Share
Sale TSM 1 $87.88 $88.02 $(0.14) -
Sale TSLA 1 $196.93 $154.69 $42.24 -
Sale BRK.B 1 $304.96 $308.00 $(3.04) -
Buy ADBE 1.827045 $322.80 $322.80 $ - $328.49
Buy LOW 0.385357 $194.62 $194.62 $ - $209.85

In February, I added to my Lowe's and Adobe positions and sold nan entirety of my TSM, TSLA, and BRK.B positions. The logic for these income was opportunity cost. I needed rate for my Adobe purchase, and those income were to free up cash.

After nan marketplace adjacent connected February 23rd, Adobe's value sank astir 8% connected nan news of a DOJ probe into nan Figma acquisition. Looking backmost to mid-September 2022 Adobe shares tanked astir 15% connected nan announcement of nan Figma acquisition. The communicative successful September was that Adobe overpaid for Figma, and nan communicative successful February is that Adobe's maturation prospects are dismal without Figma. This is simply a cleanable illustration of marketplace irrationality. Shares dropped connected nan announcement of an acquisition and besides dropped connected nan announcement of that acquisition perchance being blocked. I took afloat advantage of this opportunity and promptly freed up rate by trading TSM, TSLA, and BRK.B and allocated that money to Adobe. I put each nan rate I had connected manus into Adobe astatine nan $322.80 value point, which has rewarded maine since pinch Adobe climbing to a touch complete $346 since nan purchase.

Another lawsuit of what I judge to beryllium marketplace irrationality was Lowe's value action successful nan period of February. On February 21st, Lowe's dropped astir 5% because Home Depot (HD) announced a anemic 2023 outlook. Sure, they are competitors and person very akin business models, but they are not nan aforesaid business. The weakness that Lowe's is experiencing is not arsenic terrible arsenic Home Depot because Lowe's has had changeless attraction to operational ratio recently. Lowe's reported net a fewer weeks aft Home Depot, and contempt net growth, nan banal dropped almost 10% successful a fewer days. I took advantage of some of these drops and put each nan rate I had connected manus into Lowe's, which was $119.30 connected February 23rd and $75.00 connected March 1st. I stay very bullish connected Lowe's because they are becoming leaner and much businesslike arsenic an organization, and are wholly focused connected nan $1T+ addressable marketplace successful nan US pursuing nan waste of their Canada operations. Home Depot has acold much labor contempt operating only a fewer much stores and has operations spanning Mexico, Canada, and nan US. Home Depot doesn't moreover person 20% of nan US marketplace share, truthful there's plentifulness of room for maturation here, yet they are dividing their attraction crossed nan Americas region successful nan overmuch smaller Mexico and Canada markets. Lowe's has acold little marketplace stock successful nan US, and is rightfully focused connected expanding this marketplace stock alternatively of capturing marketplace stock successful overseas markets. Lowe's besides has little full employment costs, which demands little recurring investment. Lowe's allocated only $220M of profit sharing/payroll increases compared to Home Depot's $1B. With astir 200,000 less employees, Lowe's (~300,000 employees) has a overmuch little full costs of employment than Home Depot (~475,000), which I judge will beryllium adjuvant passim what looks to beryllium a tumultuous 2023.


February was an up-and-down period successful nan market, which I judge my strategy took advantage of. I added to my leveraged holdings and consolidated my individual equity holdings because of bully opportunities. Adobe and Lowe's are some still trading beneath my separator of information prices, truthful I will proceed adding to those positions. BRK.A is besides still beneath my target price, truthful that's thing I'll look astatine adding, arsenic agelong arsenic nan opportunity costs permits. TSM, TSLA, and SQ are presently overvalued from my separator of safety, truthful I americium not considering purchases astatine this time. However, these 3 companies are beardown maturation companies that I dream to bargain into astatine charismatic prices. I'll beryllium covering this portfolio pinch updates akin to this monthly. Until April... happy investing!

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Disclosure: I/we person a beneficial agelong position successful nan shares of SCHD, ADBE, JEPI, LOW, BOND, UPRO, TQQQ either done banal ownership, options, aliases different derivatives. I wrote this article myself, and it expresses my ain opinions. I americium not receiving compensation for it (other than from Seeking Alpha). I person nary business narration pinch immoderate institution whose banal is mentioned successful this article.

Editor: Naga

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