hi I'm Jimmy in this video we're looking
at my personal Investment Portfolio and
some of the things I've done over the
past few months to try to improve my
potential returns over the coming years
so before we jump into that I just want
to tell you real quick about a website
that we're building where basically
we're starting off with different ways
to value stocks and the idea is that
you're punch in the ticker and the
ticker and the website will kick back
different ways to Value the stock what's
the best way for that particular stock
given their economic situation right now
we've already completed the discounted
cash flow version of the website we're
in the beta version of our DCF
calculator but we're gradually going to
expand it from there to other different
other different types of valuing a stock
and also financial statements ways to
analyze companies things like that so if
you'd like to sign up for that I will
leave a link in the description below
but for now let's jump over to my
Investment Portfolio so we're going to
kick it off with my first position and
that was this position I took a little
while back right in the middle of covid
that was Disney and last time I had
reported on my portfolio well I had
announced that my Disney price was a
just under 100 bucks per share since
then I have actually averaged down a bit
more
and I've bought some shares when Disney
dipped below 100 per share last I saw
Disney's trading at about the same price
where my current entry price is so on
average I'm about even with Disney okay
after that I had Intel Now intel I had
bought back when there was a big dip
after they ran into issues they ran into
manufacturing issues and when they ran
into those issues the stock had a huge
jump off the cliff so I jumped and I
bought some shares then at that time it
was just below 45 bucks a share
since then I have continued to average
down in that stock bring it to just
under 38 dollars a share so I went from
about 44 to about 38. now
I wanted to I'm just want to clarify
with with everybody that
I'm averaging down in stocks that look
like over the long run they could be a
good investment they seem to be trading
at a value now and because of that well
this is a stock that I want to hold I'm
happy to hold for five or ten years
Intel is one of those companies Disney's
one of those companies that I'm sort of
bar I'm sort of borrowing the Warren
Buffett method of if what if the stock
market were to close for the next five
years so the 10 next 10 years would you
be happy holding these companies both of
these companies I'd be more than happy
if I couldn't get out of the position or
if they didn't trade at all so the idea
here is buying businesses that I think
can do well over the long run now I've
also done a video on each of the
companies that are in my portfolio I
have this self-imposed rule that I'll do
a video I'll only buy a stock after I do
a video so I'll let you guys know and
then I'll wait a couple days after I do
the video before I jump in uh buy any
stocks any new position
so if you're curious why I bought any of
these stocks I try to explain it fairly
thoroughly in each of the videos that I
did previously okay so this company that
I bought after I bought intel was more
of a defensive play and that's Lockheed
Martin now Lockheed Martin at the time I
had paid about 336 per share and
represented at the time it was about a
third of my portfolio now it's about 10
of my portfolio
that one I haven't added any to because
Lockheed Martin is way up at the time it
looked like it was significantly
undervalued right now it's about fairly
valued last I checked so it's one of
those that I haven't added to my
position I'm only adding to my position
if because this stock market's been down
so much
and if I can get stocks that I liked at
a higher prices well why wouldn't I want
to buy more as the price declines
as long as assuming the fundamentals
have stayed the same and in most and in
pretty much all my cases they have okay
moving right along the next one is a
more you know controversial company or
call it you know a more Troublesome
company and that's Alibaba so Alibaba
previously I had paid about 122 dollars
per share last time I did one of these
videos
again this stock has been way down
largely due to geopolitical risks of the
company and different problems that
they've had
and but I have averaged down my position
some to a bit over 110 per share now
this is one of those companies that I
think fundamentally the company is good
is strong I could see a decade from now
the company being better
but this one introduces other risks
specifically geopolitical risks that the
company
has a role in but may not it may not be
completely in their control you know
Intel as an example I think if intel
does their job and they can improve the
quality of their products and they can
improve their manufacturing and prepare
themselves for their future I think they
are largely in control of their own
destiny Alibaba could be but they may
not be so I recognize there is some risk
with that one
so I've been hesitant to add too much to
the position but for now it's at about
111 bucks per share this dog's down
below 100 for now so I'm I'm down like
many people are in this stock and I'm
okay with that over the short one again
this entire portfolio is intended to be
a long-term portfolio okay next up I
bought 18t so I bought at T and I had
originally bought these shares at about
18 18 15 per share
that is that was pre-spinoff of the
Warner uh the Warner media division of
their company so I had bought the shares
and then they did the spin-off my
spin-off adjusted price was about 1864.
since then I've had it I have added a
little shares bringing my average price
down to a bit under 18 per share
at T is one of those companies that I
like the Warner media spin-off I like
that company independently I'll come
back to that in a minute but I also like
at T on its own I think fundamentally I
think that the Warner media division the
Warner media part of their business was
a drag I don't think that they managed
that well and I think them independently
now is much better even at their lower
dividend that that they're currently
paying they dropped their dividend when
they did the spin-off and I'm okay with
that I actually think it's better for
the company so over the long run att's a
company that I'm a fan of and I'm happy
to sit there so far all these companies
outside of possibly Alibaba we'll see
how that plays out but outside of that
one I'm happy to sit there and hold
these for a long time and not worry too
much about it okay next up we have
Activision
ah last time I did an update of this
stock uh of this of my portfolio I had
announced that I paid about 63 bucks per
share shortly after I bought the stock
the Microsoft announced that they were
going to acquire them
we haven't heard much news since then so
it's been a really weird stock to own
but the stock jumped up to about 80 per
share so I'm up in the position and I
have not sold any yet because
Microsoft's supposed to close the deal
at 95 a share obviously there's some
risk the fact that it's not trading
anywhere near 95 per share implies that
there's some risk that this goes down
now since I acquired my shares I know
Berkshire Hathaway and Buffett and that
whole group jumped in and bought a whole
bunch of shares trying to play the risk
Arbitrage opportunity of closing the gap
between 80 bucks or 75 wherever it's at
now going up to 95.
that's sort of why I'm sticking around
in this one so this although I liked
Activision before the deal was announced
I'm happy to sit here and hold it and
see if the deal gets closed if it
doesn't I think big picture I I was
happy with the price that I paid 63.40
I'm more than happy with that price so
I'm happy to sit here and wait to see
how it goes okay next up we have meta
last time I uh had invested last time I
updated this video I had paid about 220
per share this stock has continued to
drop since then as it dropped I did
average down to about 180 bucks 183
dollars per share so I'm still slightly
down in the stock that's my average
price by the way that is all these
updated prices are not well I had bought
it at 220 and then I paid 183 no no I
bought it at 220 and then I paid less
than that I forget the new price I
bought at 150 or something like that for
meta my average my new weighted average
price is the 183.90 for meta so when you
see the new prices they are adjusted
prices
but the theory behind averaging down in
so many companies that I've done it in a
lot of the companies so far
the theory of averaging down is every
now and again the stock market runs
through these enormous hiccups these
pullbacks these recessions that happened
in 2008 it happened in 1999. it happened
in uh I believe 87 it happened before
that I think there was one in the early
90s as well
point is every now and again the stock
market's going up and then there's a
pullback and then it continues higher at
some point the the United States the
world is going to emerge from the
troubles that they're in right now and I
truly believe that investors that can
position themselves well in this
particular environment
are going to be are going to be very
happy that they did five years from now
10 years from now when the stock market
is hopefully much higher than it is
today hence the reason that as the stock
market has fallen I've tried not to
emotionally get rattled although I I
acknowledge that could be difficult but
I try not to get rattled and try to say
okay do I still fundamentally like the
company if I do I'm more than happy to
average down fully expecting that yeah
sure their free cash flow might be
dipping right now but in five years I
expected to be back up or in eight years
ten years whatever the number is
depending on the research
I expect it to recover so if you're
wondering why I added to so many
different positions it is because timing
the market is nearly impossible
and I buy them and I'm thinking that's a
great buy and then the stock keeps
dropping now the stock market in general
has kept dropping but as it has I've
instead of adding you know 10 new
positions or five new positions I've
rolled a lot of that money into Old
positions to try to average down and get
better sort of better uh cost basis for
the stocks that I really like
okay up next is actually one of my
favorite companies and that's Google so
Google's a big piece of my portfolio and
you can see that it right now represents
about 16 of my portfolio and last time I
had done this video I had actually paid
almost 2500 per share now since then
they did a 20 for one spin-off so
adjusted my actual cost after the
spin-off would have been about 124 per
ship now I have averaged this one down
as well and I've brought my average cost
down to about 118.
now
this is one of those that if I I want to
buy more
but I don't want the position to get too
large relative to my other positions
which is why I've hesitated I believe
Google's in the 100 range right now so
again I'm down in this position I've got
a handful of these uh outside of maybe
Activision Lockheed Martin I'm up
there's a few of them that I'm up I got
a couple others that I'm up
but overall the ones that I'm down I'm
trying to average down in but I'm also
trying to keep the portfolio from
getting too heavily diverse so too
heavily concentrated in one stock Google
I have sort of gone a little bit nuts on
it but again I think that Google
10 years from now is likely to do be
doing better than it is today
it's one of those companies that I'm
more than happy to buy for value
okay next up I added Warner Brothers
Discovery now I mentioned before that
when I bought at T well at T spun off
Warner Brothers Discovery because of
that I actually got one percent one
percent of my portfolio was Warner
Brothers Discovery that's you know we
got shares for owning a t
since and my average cost at that time
was about 23 24 bucks per share for
Warner Brothers had nothing to do with
ATT Warner Brothers they calculated
average cost
post spin-off was about 24 per share
since then I have averaged down my
average cost to about 14 per share I
just recently did that in the past week
or two
because Warner Brothers Discovery has
dropped a decent amount now I had to I
did a video on them not long ago like I
said there's videos on all the companies
I've bought I won't buy a company unless
I first make a video on it so uh so I
can explain why I'm buying or what I'm
thinking
but Warner Brothers is one of those
companies that they're trying to Warner
Brothers Discovery is pushing out
they're pushing together their platforms
they've got a lot of work ahead of them
so again I recognize the risk involved
in this company and owning this company
they have to achieve the goals they've
set out Beyond them that they said are
for themselves I've invested in this
company thinking they can't achieve it
so I'm more than happy to sit here and
hold this stock and see how it plays out
over the next few years okay next up we
have apple
this one I kind of got lucky with so
this kind of cash flow is my favorite
way to value stocks it works very very
well for
large companies a company like apple
where where disc where cash flow is
somewhat predictable one of the keys to
discounted cash flow is that you have to
have a discount up right you have to
have what is my required rate of return
if I want to return five percent
and we think they're going to earn how
much cash flow what do I have to pay
today if I want to earn 10 what do we
have to pay today
my required rate of return was seven and
a half percent
I picked that rate because it was a
premium over AAA corporate bonds as you
may be aware since then since I was
using that interest rates have gone up a
decent amount so I increased my required
rate of return from seven and a half
percent up to nine percent again trying
to offset that now I have a premium of a
triple a corporate bonds if rates keep
going up I'm likely going to have to
increase my required rate of return
again
well as that was happening
I turn around I'm analyzing I'm do I'm
using our discounted cash flow
calculator and apple keeps popping up as
a stock that looks like it is getting
close to being undervalued that it drops
down I end up jumping in and buying my
shares it dropped below 141 that was
where I was trying to get it to drop
below 141 I got a fair value I believe
of 145 at the time
I jumped in and bought some
and I got an average price of 140.76
and the stock bounced after that and I
don't think it's back down there yet I
think the Stock's up to one
45 146 147 something like that that
one's held up quite well
but the reason why I say I got lucky is
that like two weeks later I increased my
required rate of return from seven and a
half to nine and just like that Apple
was no longer undervalued so I was a
little you know luck of timing if you
want to call it that
okay that being said the next company
that I added was Citigroup now Citigroup
is it's a small position I made it a
half size position again video on this
uh video a link to the video I made on
that company in the description below
but I had bought my shares previously at
about 46 bucks per share since then the
stock is a little bit below I believe a
little below 40 low 40 something like
that and I average down a bit to about
45 dollars and change now Citigroup I
bought again this company has been
fairly stagnant for the past three years
for the past few years the the
management team has since then in the
past few months even the past year has
laid out a plan for how they're you know
they're going to leave some businesses
they're going to go into some new
businesses and try to grow the company
and as I was reading through it and
analyzing their numbers if they pull it
off there could be some growth again and
again this company looks like it could
be a good deal at this price now I did
not use disk on a cash flow for the bank
because this kind of cash flow doesn't
work for Banks Banks don't have normal
types of free cash flow so there I used
price to tangible Book value and that's
actually going to be the second
valuation method that we add to the
website once we work out the Kinks of
the beta version of the website so if
you want to come over and sign up to our
investing website I will leave a link
right here I'll leave a link in the
description below and if you have any
questions about my Investment Portfolio
every week we do private live streams in
our investing Community which you get
access to if you sign up for the website
and we go through my portfolio and a few
other portfolios that we're building so
if you'd like to sign up I will leave a
link in the description below thank you
so much for sticking with me all the way
to the end of the video I really do
appreciate it thank you and I'll see in
the next video