Welp, it’s been a while since I wrote a post! Life has just been so busy these past few months, it’s been difficult to find the time, energy, and desire to post stuff. I would, however, like to start producing more content sharing some of my thoughts, experiences, and tips in addition to the usual income logs and stock-purchase type of posts. I will work on budgeting my time better in the coming months to give the blog a little more love.
In the meantime, here’s a quick update on what I’ve been up to.
Recently, however, I was approached by the head of our advertising department about an opportunity to join their team as the ad operations manager for the company’s online advertising efforts. After some research and consideration, I realized that this position would offer me the opportunity to apply both my tech skills and my financial savvy in a way that I never could as a web developer. Furthermore, the career-advancement potential here is much higher than it is in the web development world, which made it a no-brainer for me to accept the offer. I am super excited about this career change and the financial benefits it will bring to my investing endeavors over the course of the next couple of years.
Those who have been following my blog since its inception know that I became a homeowner last year, something that I had dreamed of accomplishing ever since I was a child. And while my humble abode had many great things going for it, one of the elements that wasn’t so great was its roof, which was close to 25 years old. It wasn’t in terrible condition considering its age, but it definitely carried its fair share of damage and deterioration.
In late May of this year, we got hit by a pretty nasty hail storm here in Boise. I remember being in the office when it happened, staring in awe as the skies unleashed their icy fury upon the earth, pelting the environment with hemorrhoid-sized chunks of ice (sorry for the graphic metaphor, lulz).
A few days after the storm, my neighbor mentioned that he had just gotten his roof replaced, for free, because of the damage the hail had caused. He suggested that I call up my insurance to get mine replaced as well.
At first, I was a little hesitant. Yes, the storm had been a pretty violent one, but nowhere near cataclysmic enough to cause severe damage. Looking at my roof, I couldn’t see any sign of new damage beyond perhaps a few scratches. But since my neighbor had managed to get his replaced, I figured I might as well try, since I didn’t really have anything to lose. Either the insurance would accept my claim, or it wouldn’t.
As it turns out, the insurance company did indeed accept my claim and thus, a few weeks after that conversation with my neighbor, my house boasted a brand new, 6000-dollar roof, for which I only paid a small deductible.
Who says home ownership has to be expensive?
In the last portfolio update I wrote, I had purchased 7 shares of Wells Fargo (WFC), bringing my position up to a total of 17 shares. I had also initiated a position in Activision Blizzard (ATVI) in my 401(k). This was in late June.
Since then, quite a few things have happened. On the selling side, I closed my positions in Procter & Gamble (PG), Intel (INTC), and HCP (HCP). In the case of PG and INTC, I felt like the tiny growth the companies had been posting in the last few years was a bit of a red flag. While there is no doubt in my mind that they will both make it through these periods of slow growth, I think I was better served redeploying that capital into more attractive opportunities (both from a growth and valuation standpoint).
In regards to HCP, I felt uneasy about the potential dividend cut with the upcoming spinoff. This ManorCare issue has been a thorn in the company’s side, and I simply feel more comfortable staying away from it for the time being. Down the road, I might certainly reconsider initiating a position in HCP.
On the buying side, I redeployed the capital from my HCP position into my current favorite healthcare REIT: Omega Healthcare Investors (OHI). This one is truly a dividend-investor darling, and for good reason. It just keeps on posting profitable quarter after profitable quarter, all the while increasing its dividend like clockwork. And to top it off, it continues to be severely undervalued by the market. Even though I already held a huge position in OHI, I just couldn’t resist nibbling a little more. In mid July, I added another 30 shares of this awesome company at a price of $33.81/share, which averaged down my cost basis of ~ $36 a bit.
I have also been like the biggest Wells Fargo whore these last few months. Since my June purchase, my position has swelled from 17 to 44 shares, in multiple incremental purchases. It’s just such a quality bank, with a solid yield and discounted valuation, that I believe now is a great time to be building a position in it. Don’t be surprised if I add another couple dozen shares by year’s end!
In early July, I also scooped up 5 more shares of the Bank of Nova Scotia (BNS), which is another bank I am enamored with, both from a profitability and valuation standpoint. I have much love for our Northern neighbors!
Lastly, in early August, I purchased another 7 shares of Facebook (FB) in my 401(k) at a price of $122.91/share. After they crushed Q2 estimates, I just had to buy more, even if it meant averaging up. This is the company to be in for big capital growth. No doubt about it.
There you have it folks, a quick snapshot of what’s been going on in my life recently. Thanks for reading, and happy investing!
Disclosure: long ATVI, BNS, FB, OHI, WFC