Break Out Money Guys

Position Update: Mid-June

My apologies for missing the update in May. The last few months haven’t been particularly thrilling with my portfolio. My positions aren’t picked on hype or social media. In fact, most of my positions will likely stay under the radar until sentiment shifts.

That said, I believe in staying aware. Always know what you own. And if a pick turns out to be a dud, don’t cling to it hoping for a miracle. Cut it and move on.

Here’s a quick rundown of my current positions.

Intel (INTC)

Last Tuesday, Intel had a strong green day and outperformed its peers. Unfortunately, bullish sentiment fizzled pretty quick the following day.

Key Points:

  • Trading in long-term support between $18 and $20
  • 65% owned by institutions, according to Simply Wall St
  • High volume implies quiet accumulation

I’m not interested in adding to or cutting this position until price moves well outside its accumulation zone. Until then, it just sits.

Nike (NKE)

Nike is also quite boring right now. However, it’s trading at its 200 monthly moving average, so I was okay taking the risk.

Key Points:

  • Overblown fears from tariffs, consumer sentiment, and competition
  • Trading at 2015 levels
  • A nice 2.6% dividend while I wait

There’s not anything exciting going on with the company, but they have years of history, name recognition, and make high-level products. I don’t expect Nike to lose too much market share anytime soon.

iShares 20+ Year Treasury Bond ETF (TLT)

This ETF is a place to park capital while I wait for the economy to clear up.

Key Points:

  • 4.4% dividend — higher than high-yield savings accounts right now
  • Clear accumulation volume
  • Less volatile than equities

Because the direction of the US economy is so uncertain, this is a safe place to park money. I will mention that Jamie Dimon, CEO of JPMorgan Chase, has said there will be cracks in the bond market. If he’s right, this would not be good for TLT.

PepsiCo (PEP)

PepsiCo is the only stock on this list that I plan to own forever.

Key Points:

  • Defensive — holds up in recessions
  • Low volatility
  • Strong price history spanning 40+ years

With PepsiCo’s strong market position, this is a company I don’t mind being early in. I am interested in adding to my position anywhere between $135 and $90.

SiriusXM (SIRI)

SiriusXM is a company I thought I’d never hear of again, until I found out Warren Buffett owned over 30%.

Key Points:

  • 5% dividend
  • Steady revenue and subscriber base

This one won’t be making any fireworks, but it’s a good place to park money and collect 5%.

Devon Energy (DVN) and Occidental Petroleum (OXY)

I bought both of these for the same reason — exposure to oil.

Key Points:

  • OXY is backed by Buffett
  • DVN has dual exposure to oil and natural gas
  • Global tensions have made oil prices unstable

As much as I love lower prices at the pump, I don’t think oil and gas prices are going to drop much more anytime soon. These two companies give me exposure to the industry.

Big Picture

None of my positions are trendy or hype plays.

If the market drops tomorrow, I’m not overexposed to frothy valuations. And if we break out instead, these beaten-down names are in a position to recover faster than their overbought peers.

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