November Portfolio Review & December Focus

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If you enjoy thoughtful discussion and idea-sharing with other investors, I think you’ll love our FREE chat. I started a new thread with our December focus: Oil & Gas industry & Master Limited Partnerships (MLPs). More on that at the end of the email.

November was a good month. I contributed $1,000 to the portfolio and the market gain for the month was $10,087.

I’m very happy with each of the companies I own and have no intentions of selling or trimming any of them. I am strongly considering the addition of some high-quality dividend growth stocks and high-dividend Master Limited Partnerships (MLPs).

I have built up sizable positions in a lot of my favorite software/tech stocks and many of them have rebounded quite a bit from their lows. If we see a significant sell-off in those companies, I’d likely look to continue adding to those positions. If we don’t then I’ll look to build new positions in dividend-growth stocks/MLPs slowly.

The graph below shows the S&P 500 since 2002. The blue line represents the average blended P/E since 2002 which has been 25.58 (blended = mix of trailing twelve-month and next twelve-month P/E).

The SPY hit a peak of around $475 in December 2021 and has since sold off 13% down to $407.

There are a ton of doomsday headlines out there predicting the demise of…everything, but I’m still of the opinion that stocks got overvalued, spending got a little crazy due to very low interest rates, and a lot of crazy stuff happened since the end of 2019….so we needed the fed to increase interest rates, we needed a normal recession, and the stock market needed to cool down a bit.

The black line on the chart below represents the current price of SPY. You can see in December 2021, it was WAY above its 20-year average. Now it is basically in line with its 20-year average.

Where do we go from here? I don’t know. Probably somewhere between down 15% to up 15% over the next year.

Sure, we might be on the edge of a historic depression/bear market, but more money has been lost waiting for those than made during them (for the general public especially).

So I’ll continue keeping any money I might need in the next 3-5 years out of the market and investing the money I do have in the market in the best companies I can find at reasonable enough prices.

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Portfolio Update

Start Date: February 15, 2022Contributions: $133,095Current Value: $118,331All-time performance: -$14,736November performance: +$10,087November Transactions: Added 10 shares of @ $95.89 Current Industry Allocations:$45,116 (38%) Cloud & SaaSNET 2.03%↑ | DDOG -0.17%↓ | CRWD 3.32%↑ | SNOW 0.70%↑ | MDB 3.06%↑ | GTLB -0.82%↓ | BILL 1.95%↑ $43,821 (37%) Advertising & eCommerceMETA 5.26%↑ | SHOP 3.56%↑ | MELI 3.62%↑$29,394 (25%) EV, Space, and SemiconductorsTSLA 2.42%↑ | RKLB 3.91%↑ | TSM 0.23%↑

Current Portfolio Valuation, Margins, and Growth Expectations

Here’s a video version of the update if you’d like to see my pretty face

December Focus

This month, I’ll of course keep you updated on any changes in my portfolio and any material news from my companies.

In addition to that, I’m going to be diving deep into the Oil & Gas industry with a focus on MLPs.

For anyone who wants to do their own deep dive, I would HIGHLY recommend diving into the Exxon Mobil podcast and all of these resources from Join Colossus.This is another fantastic deep dive into NextEra Energy. America’s most valuable energy firm.