5 Changes I Made to My Portfolio (Mid Year Review 2024) | Top 5 Changes I Made to My Portfolio
Summary
TLDRIn this video, the speaker discusses strategic stock transactions in their portfolio, focusing on buying more of NRG due to its significant growth and high billionaire interest in energy stocks. They sold Caterpillar, replacing it with KKR for diversification, and swapped Ulta for Deck due to Ulta's underperformance and Deck's promising outlook. The speaker also shares lessons learned from value investing and the importance of following personal investment processes. Other stocks like Marriott and Palo Alto Networks were sold to consolidate the portfolio and reallocate funds to better-performing stocks, emphasizing the need for portfolio management and strategic decision-making.
Takeaways
- 📈 The speaker has made changes to their stock portfolio, buying and selling stocks based on market performance and personal strategy.
- 🛒 They purchased more shares of NRG, a stock that has seen significant growth over the past 6 months and year, with interest in doing more covered calls with the company.
- 🚜 Sold Caterpillar, which had good performance but was replaced with KKR, an asset manager, as part of a diversification strategy and due to long-standing interest in KKR.
- 👟 Bought Deckers Outdoors, known as Deck, replacing Ulta which did not perform well, reflecting a shift from a value investment that didn't pan out to a growing company.
- 💄 Expressed dissatisfaction with Ulta's performance, citing personal errors in selling timing and acknowledging a struggle with value investing strategies.
- 🔄 TransDigm (TDG) was acquired, replacing Marriott, as part of an effort to maximize gains and maintain a manageable portfolio size.
- 🏨 Sold Palo Alto Networks, taking profits due to perceived slowing growth, aiming to reallocate funds to other areas of the portfolio.
- 👧 Made changes in the speaker's daughter's portfolio, swapping Lululemon for Chipotle and Ulta for Netflix, based on recent market trends and personal preferences.
- 📊 Highlighted the importance of reviewing investment notes and being consistent with one's own investment process rather than trying to emulate others.
- 📈 Mentioned the recent stock splits of Chipotle and other companies, indicating a belief in the potential positive impact of such actions on stock performance.
- 📚 Offered to do a deep dive on the energy sector and why billionaires are investing in it, showing an openness to explore and share knowledge on specific market trends.
Q & A
What significant action did the speaker take regarding their stock portfolio?
-The speaker bought and sold stocks in their portfolio, specifically adding more shares to NRG, selling Caterpillar and Ulta, and replacing them with KKR, Deck, and Netflix.
Why did the speaker decide to buy more shares of NRG?
-The speaker decided to buy more shares of NRG because the stock has performed well, being up 52% in the last 6 months and 110% over the last year, and they want to do more covered calls with the company.
What was the speaker's reason for selling Caterpillar stock?
-The speaker sold Caterpillar stock and replaced it with KKR because they have been interested in KKR for a while and believe it could perform better, despite Caterpillar's recent gains.
What mistake did the speaker acknowledge making with Ulta stock?
-The speaker acknowledged being too patient with Ulta stock, holding onto it longer than they should have, expecting a recovery that never came, which resulted in a loss.
Why did the speaker choose to replace Ulta with Deck?
-The speaker chose to replace Ulta with Deck because Deck has shown strong performance, being up 45% in the last 6 months and 84% over the last year, and they wanted to diversify their portfolio.
What was the speaker's strategy for managing the number of stocks in their portfolio?
-The speaker's strategy is to keep the number of stocks between 10 to 12 to maintain manageability and ensure they can research and stay informed about each company.
Why did the speaker decide to sell Palo Alto Networks stock?
-The speaker decided to sell Palo Alto Networks stock because they believe it is slowing down and they want to take their profits and invest in other companies that are performing well.
What was the speaker's reasoning for the stock split prediction of Chipotle?
-The speaker had predicted the stock split of Chipotle based on their analysis and had mentioned it in a previous video, which turned out to be correct.
How did the speaker's daughter's portfolio changes reflect the speaker's investment philosophy?
-The changes in the daughter's portfolio, such as selling Lululemon and Ulta and buying Chipotle and Netflix, reflect the speaker's philosophy of diversification and investing in companies that have shown recent strong performance.
What is the importance of reviewing investment notes according to the speaker?
-Reviewing investment notes is important for the speaker as it helps them to reflect on their investment process, identify areas of strength and weakness, and make more informed decisions in the future.
What did the speaker learn about their investment style from the experience with Ulta?
-The speaker learned that they are not particularly good at value investing, despite following the principles from books and doing their homework, and that they should stick to their own investment process.
Outlines
📈 Stock Portfolio Adjustments and Sector Insights
The speaker discusses their recent stock transactions, highlighting the purchase of more NRG shares due to its significant increase in value and the interest of billionaires in energy stocks. They express willingness to delve deeper into this sector if prompted by viewers. The speaker also details the sale of Caterpillar shares, which have performed well, and their replacement with KKR, an asset manager, reflecting a strategic move to diversify beyond tech stocks. The summary includes the rationale behind these moves, emphasizing the importance of diversification and the speaker's personal investment strategy.
📉 Reflecting on Investment Decisions and Portfolio Rebalancing
In this paragraph, the speaker reflects on their investment choices, particularly the sale of Ulta and Marriott stocks, which did not meet expectations, and the purchase of TransDigm Group and the sale of Palo Alto Networks. The speaker admits to being better at following their own investment process rather than strictly adhering to value investing principles. They also mention the desire to keep their portfolio manageable by maintaining between 10 to 12 stocks, which involves selling off some stocks that are slowing down or not fitting the portfolio strategy. Additionally, the speaker discusses making changes in their daughter's portfolio, including the switch from Lululemon to Chipotle and from Ulta to Netflix, based on recent performance and future potential.
Mindmap
Keywords
💡Portfolio
💡NRG
💡Caterpillar
💡KKR
💡Value Investing
💡ULTA
💡Deckers Outdoors
💡TransDigm Group
💡Palantir Technologies
💡Diversification
💡Stock Split
Highlights
The speaker begins buying and selling stocks in their portfolio twice a year, with today being one of those days.
NRG Energy stock has performed well, with a 52% increase in the last 6 months and 110% over the last year, prompting the speaker to buy more shares.
Billionaires are also investing heavily in energy stocks, suggesting a potential deep dive into this sector.
Caterpillar stock was sold, despite a 133% increase in the last 6 months and 36% over the last year, to be replaced by KKR, an asset manager.
KKR has been on the speaker's watch list for years, with a 28% increase in the last 6 months and 90% over the last year.
The speaker emphasizes the importance of diversification in their portfolio, balancing tech stocks with investments in other sectors.
Deckers Outdoors Corp (DECK) was bought, replacing Ulta Beauty, which did not perform well for the speaker.
DECK has seen a 45% increase in the last 6 months and 84% over the last year.
The speaker regrets not selling Ulta Beauty sooner, acknowledging greed and a lack of adherence to their own investment process.
TransDigm Group (TDG) was bought, replacing Marriott International, which has seen a modest 7% increase in the last 6 months and 31% over the last year.
TDG has performed well with a 28% increase in the last 6 months and 50% over the last year.
Palantir Technologies (PLTR) is being sold due to slowing growth, despite a 14% increase in the last 6 months and 32% over the last year.
The speaker aims to keep their portfolio manageable, preferring to have 10-12 stocks rather than 18-19.
Lululemon was sold from the speaker's daughter's portfolio, replaced with Chipotle, which has seen a 37% increase in the last 6 months and 46% over the last year.
Netflix was also added to the daughter's portfolio, with a 36-38% increase in the last 6 months and 53% over the last year.
The speaker reflects on their investment process, acknowledging that they are not great at value investing despite following the teachings of experts.
The speaker predicts potential stock splits for certain companies, having previously correctly predicted splits for Chipotle and others.
Transcripts
there are only two times per year where
I start to buy and sell stocks in my
portfolio today was that day so what did
I buy what did I sell and why did I do
it let's go ahead and break it down so
here's everything that I bought and sold
and I'm going to give you a little bit
of a description as to why let's first
start off with
NRG I've talked about the stock before
the stock has done quite well and all I
did was buy more of NRG is up 52% in the
last 6 months and up 110% over last year
at the time that we are doing this video
billionaires have also been buying a lot
of energy stocks if you want me to do a
deep dive on what is going on in that
sector and why they are snapping up
shares of companies like NRG just let me
know in the comments cuz I am interested
in that topic as well but I just added
more shares there I want to do more
covered calls with this particular
company so I need to buy more shares
myself so that's all I did there
caterpillar though I let go of okay let
go of caterpillar but not for the
reasons that you think caterpillar is
fine it's actually up 133% in the last 6
months up 36% over the last year I only
made about 11% only 11% is fine it's
definitely good in a normal year I
replaced caterpillar with KKR KKR is an
asset manager think of it sort of like a
golden Sachs depending on who you ask um
so caterpillar gone KKR is in KKR is a
company I've had on my watch list I feel
like for like two or three years now
just finally pulled the trigger there
they're up 28% in the last 6 months and
up 90% over the last year really should
have done this a long time ago but you
know had to finally make that move I
just feel like I could have done a bit
better there though caterpillar does pay
a solid dividend I do want to keep in
mind this all in the public portfolios
are everybody can see all these moves
and see what I own but I always want to
try and be a little Diversified because
I already own a bunch of tech stocks
already okay so I can always just get
more Tech right but I want to try and
stay Diversified so wanted to do
something you know in energy wanted to
do something in finance and you know
kind of be off the beaten path while
also still owning apple and alphabet and
all those companies next year is deck uh
deck is the ticker symbol but deck are
Outdoors we talked about this company
told yall about it last week okay I
broadcast this one but it is up 45% in
the last 6 months and up 84% over the
last year I replaced it uh or I picked
this one up and kicked out Ulta Ulta did
not do well for me it did not work Ulta
did not work and I'm I'm a little mad at
it so Ulta was down 21% over the last 6
months and down 18% over the last year
two things wrong with Ulta for me okay
really three things when I think about
it uh number one Rong with Ulta it was
up for a little bit I should have sold
it when I was up I got a little greedy
um I need to check the data to see
exactly how long I had it I feel like
I've had it for a year and a half now um
but I bought Ulta Ulta had earnings
shortly after it Tanked
started to come up I should have sold it
like right at that six-month Mark I
didn't I told myself hey it's a value
company the numbers were good and they
were just continue holding it thinking
it was going to you know be positive and
I was going to take whatever gain that I
was going to get that gain never came so
should have sold it the minute I could
have I did not I was a little too
patient the stock never really recovered
that's number one number two I just
think again this goes back to process
just yesterday
just yesterday we talked about the three
most important things when it comes to
investing last week we talked about the
importance like the the two or three
tiny habits it comes uh tiny habits you
need to know when it comes to investing
I talked about going back and reviewing
your notes when it comes to investing
and trading the notes here tell me okay
after just reviewing my notes and
reviewing and reviewing I am not great
at Value
investing okay I read the book
y'all saw me read the book okay took
notes read the book went back read the
chapters I've done all the homework I'm
just not great at it and the interesting
thing is when I go back and I'm staring
at my notes here right and I look at and
I still have the spreadsheet on what I
did when I looked at Ulta and what the
homework was for Ulta and all the stuff
I notated and all that kind of stuff and
we were right you know quot un quot um
but it just didn't work and not every
time I do it but most of the times I I
follow the value investing things in
that book and what I follow just doesn't
work for me and when I follow my own
process my Miss is Caterpillar so I miss
with caterpillar made 11% that was my
Miss and I miss with this and lose 20
something per. so that's not to say that
I'm better than Warren Buffett or
anything like that it's not it's just to
say I should follow my I should be me
and try not to be somebody else is what
that really means uh because I miss with
with uh Intel okay so that's not to say
that I don't miss because I do but going
back to that consistency piece if I miss
I want to miss the way I want to which
is going to be that 11% more often than
not um so B didn't work for me that's
not the only time I've tried value
investing with this exact same process
and this tends to to be the result with
Ulta and Ulta like companies so didn't
work for me next here is trans dium
tdg um I picked up this one and is up
28% in the last 6 months up 50% over the
last year I am replacing it which means
I am
selling uh Marriott Marriott is up 7%
over the last 6 months and up 31% over
last year Marriott is Fond nothing wrong
with Marriott we did talk about Marriott
said Hilton was better from a stock
perspective um but I just think I want
to make a little more okay don't want to
be greedy I want to make a little more
so selling one picking up the other so
we're just doing a flip-flop here in
this particular case um next here I'm
selling po Alto networks selling pal
outto networks um just selling getting
rid of it all together is up 14% the
last 6 months up 32% over the last year
I think pal Alo networks is fine I do
think it slowing down a bit not saying
it's falling off but I am taking my
profits and I'm going going somewhere
else there's two reasons why I'm doing
this number one because it is slowing
down again I'm not saying this fall off
the map I'm not saying it's crashing
okay I'm not saying that but um similar
to like a what was that Hershey that we
talked about not too long ago like it
was great then took our gains gone
somewhere else I'm I'm kind of doing
that now where you know only at 14% I
say that in air quotes because it is
still pretty good but I'm going and
taking my gains and going somewhere else
other reason why too is
because as I'm buying and selling and
doing all the stuff in my public
portfolio I don't want to have 18 or 19
stocks okay I want to keep it between
like 10 to 12 cuz it's you know I have
to research all these companies know
what's going on with all these companies
and having
15 20 that's that's too many right I
want to keep it relatively small keep it
manageable and know exactly what is
going on so I want to trim things down I
have too many right so selling that all
together taking that money and just
redistributing it selling it and then
just investing in everything else and
just pushing those dollars upward is
going to be helpful also having more
money in those other companies that are
doing well is going to help the entire
portfolio across the board so that is a
thought process there um two other
smaller moves this is in my daughter's
portfolio everybody else in the family
kept all the stocks everybody else was
fine um she had Lululemon we had talked
about Lululemon in the previous video
this week down 41% in the last six
months down 20% of last year she you
know was born in the pandemic stock was
doing well we got rid of it gave her
Chipotle instead yall know how I feel
about Chipotle I own Chipotle uh
Chipotle is up 37% in the last 6 months
up 46% of last year we talked about them
doing their stock split and how good
that could be for the company and how
well the company was doing uh and then
Netflix uh she had Ulta as well so we're
taking out Ulta for her or did take out
Ulta for her and picked up Netflix again
Netflix up 36 38% in the last 6 months
up 40 I'm sorry up 53% over the last
year now when it comes to Chipotle again
they were one of the few companies I was
going to say one of the few one of the
many companies that did a stock split
here pretty recently including Walmart
now I was one of the few people maybe
one of the only people call what you
want but one of the few people um that
did predict that they were going to do a
stock split and in that original video
that wasn't the only company that I said
hey they might do a stock split actually
did it land research Corp with another
company that I said in that video that
happened to do a stock split as well so
I did a follow-up video about some
additional companies that could announce
a stock split here pretty soon if you
want to know what companies might be
next in terms of stock splits you want
to check out this video right here
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