Portfolio breakdown

I’m going to spend several paragraphs talking about stuff that I barely understand. Bare with me.

  • Blackberry (BBRY) — 16 shares bought at $ 7.14

Most people think this was a curious or risky purchase. It was, but I bought it knowing that Blackberry was attempting to shift its focus from hardware to security oriented software (its specialty). With that said, I will probably sell the stock tomorrow if it drops below $6.65. I still believe that over the next several years the stock will improve, but I have set a hard-and-fast rule to sell any stock that drops below 7% of my initial buy-price. The purpose of the rule is to eliminate emotion from my decision making process, force myself to cut losses, and regularly reposition myself behind stronger stocks.

  • Facebook (FB) — 1 share bought at $117.10

The was an investment in Mark Zuckerberg, who I think is a master of long-term strategy and diligent execution. After Facebook easily beat analyst estimates for its Q1 quarterly earnings, I decided to take a small gamble on a stock that is at the high-point of my price range. However, well aware that I’m not a financier or stock guru, I only bought one share and hedged my bets with other more reliable buys (like American Water Works (more on that below)).

  • Apple (AAPL) — 1 share bought at $97.26

This was a stupid purchase. I knew it at the time, but I’ve always wanted to own a share of Apple. This is an example of emotion dominating logic. Apple’s drive for innovation, perfection, along with its mastery of marketing, has weakened over the years. I’ve read that its stock is largely considered under-valued, but that’s given a multi-year outlook. If Apple manages to successfully enter the electric car or green energy markets, it may manage to reinvigorate its brand. But I’m not currently looking to hold onto trades for multiple years. I’ll probably sell this as soon as I can break even and redistribute the money to smaller companies with more room to grow.

  • Consolidated Water Co. LTD (CWCO)— 10 shares bought at $12.24

Okay, so this is where I’m starting to focus my portfolio: utilities, mostly water. The drive for green energy combined with frequent droughts, wild fires, water shortages, increased need for desalination processors, and a thriving housing market is driving various utilities’ stocks through the rough. Consolidated Water Co. was one of my first investments in that area. It uses reverse osmosis technology to make freshwater from seawater and is a market leader in South America. CWCO’s price has been climbing uphill for several years. Although it’s price is a little loose at the moment, I think I’ve seen signs that it’s beginning to tighten while volume dries up. This indicates (to my fresh eyes) that demand is reaching bottom, which will lead weaker investors to drop off, causing a break out over the next several months. Or not, I’m new to this. Time will tell!

  • American Water Works (AWK) — 7 shares bought at $72.73

One of my best investments, it has risen 7% since my purchase a few months ago, and has tightly risen 206% over the past 5 years. The company is a market leader that provides water and wastewater utility services to residential, commercial, industrial, public , and other customers throughout the US.

  • Conagra Foods (CAG) — 6 shares bought at $47.14

A more recent investment. Purchased after I read about its low volatility and 115% price increase over the past 5 years. I bought in just after identifying a possible double-dip in the price, possibly leading to a breakout. The second base in the double dip is just slightly above the first, which makes me think it might fail before breaking out. With that said, volume has dropped extremely low in the past several days, with very tight price fluctuations. So far, the price has continued a slight upward trend towards the end of the month, so we’ll just have to wait and see where it ends up.

  • Tesla (TSLA) — 1 share bought at $222.75

Really really dumb purchase. I sold it today after it dropped to $196 (12% drop from buy price) following the offer to buy SolarCity. Bought it because I love Tesla and am a sucker for Elon Musk’s glorified persona. Truth is, they’re failing to meet every deadline, failing to exhibit quality manufacturing practices, and losing their lead over competing manufacturers. This is another stock that I believe will end up doing extremely well years down the road, but I’m not looking to hold for that long.

  • Alibaba (BABA) — 2 shares bought at $77.84

Bought this after reading about substantial expected growth over the next five years. The company is a market leader and so far it hasn’t hurt, but I don’t have much more explanation than that.

  • Aqua America Inc (WTR) — 4 shares bought at $33.61

Another water-utility investment. Aqua American Inc is a holding company for regulated water and wastewater utilities. Its market is Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indian, and Virginia. The stock has tightly risen 122% over the past 5 years and has very low volatility. However, I can’t say I have any other solid grounds for taking the gamble on it. I made the mistake of buying in the midst of the Brexit crisis and the stock has taken a small hit over the past several days. Assuming Brexit does not pass, I expect it to recover by next week.

  • SiteOne Landscape Supply, Inc — 8 shares bought at $28.60

My biggest gamble but so far it’s seriously paying off. It went public only a few months ago and has been in a general downward decline. I made the decision to take the risk after reading about how the strong housing market is driving demand for landscaping equipment/services.

I’m now a little more confident in the company and actually added another 7 shares this afternoon after identifying a saucer-and-handle / double-dip pattern later in the day (see screenshot).

The average cost of each share was 29.77. Current price is 31.58 (31.50 in after-hours trading), a 5% increase in only a couple days. No telling whether this gain will continue or if I’ll lose it all tomorrow, so fingers crossed.

Overall, the market seems to be pretty volatile this week. After the 25 point hit I took before selling Tesla, I’m currently up just 1.75% for the week. Not great, but at least I’m not down.

That’s all I got for now! I’ll keep you posted as I go!