3 Recent Buys – BAM, FB, MSFT

BuySell

A quick update on a couple of recent buys in the portfolio.

  • First purchase: I added to my position in Brookfield Asset Management (BAM.A.TO) @ CAD$44.00 with the recent weakness in stock price. There are still a lot of overhanging questions on the impact of BPY (Brookfield Real Estate subsidiary) on the parent company and how the commercial real estate market will play out, but I decided to incrementally add to my position here.
  • Second purchase: I added to my position in Facebook Inc (FB) @ $209.70. The recent backlash against FB from companies to pull ads was a good buying opportunity imo. Some of these companies have stated that this is a pause for just one month, while others have left it open-ended. Regardless, the revenue source is diversified with third party analytics showing that FB’s top 10 advertisers make only 1.5% of total revenue.
  • Third purchase: I continued building on my new position of Microsoft Corp (MSFT) @ $193.50. Recently I decided to go up the risk curve a bit and sold off most of my bond allocation & decided moving those funds to one of the two AAA rated companies with a long road of growth ahead. I am close to a full position now, but may add more in the future as my overall portfolio grows and sizing automatically changes.

Full Disclosure: Long BAM.A.TO, FB, MSFT. Our full list of holdings is available here.

Recent Sell – KMI, Bonds

BuySell

A couple of sales in my portfolio recently as I try to align my portfolio closer to what I think is better for long term growth.

I sold and closed my positions in:

  • Kinder Morgan Inc (KMI). Loss = 26%
    • I’ve held KMI for a long time and held through the rough patch the company went through a few years ago. However, my capital is not only stagnant, but losing value by staying invested in this dog of a company/industry. So, decided to cut my losses & exit.
  • Bond portfolio: Sold off most of my bond holdings after some good gains, thanks to continued depression of interest rates.
    • Vanguard Total Bond Market Index ETF (BND). Gain = 8.3%
    • Vanguard Emerging Markets Bond Fund (VWOB). Gain = 23.5%
    • BMO Emerging Market Bond CAD Hedged ETF (ZEF.TO). Gain = 16%

Full Disclosure: Our full list of holdings is available here.

2 Recent Buys – MSFT, V

BuySell

A quick update on a couple of recent buys in my portfolio.

  • First purchase: I initiated a new position in Microsoft Corp (MSFT) @ $187.00. This has been long overdue. After missing this gem hiding in plain sight, I decided to pay up and initiate a position in MSFT. The company has executed brilliantly over the years and continues growing market share quarter after quarter.
  • Second purchase: I added to my position in Visa Inc (V) @ $190.00. I am slowly building this position as we move further towards a cashless society. This company continues to execute and plenty of growth runway ahead.

Full Disclosure: Long MSFT, V. Our full list of holdings is available here.

3 Recent Buys – FNV, BIPC, ADYYF

BuySell

A quick update on a couple of recent buys in my portfolio.

  • First purchase: Last week, I added to my position in Franco Nevada Corp (FNV.TO) @ $181.00. The recent pullback provides what I believe is a decent place to add in a marketplace where everything else seems overpriced & overextended.
  • Second purchase: This was a swap of my shares in Brookfield Infrastructure Partners. After the recent split between the LP units (BIP/BIP.UN.to) and C-corp (BIPC/BIPC.to), it seems like there is much higher investor appetite for the C-corp shares — likely due to simpler tax filing system for the US investors & fund flows. I decided to sell my BIP.UN.TO shares and buy the BIPC.TO shares instead.
  • Third purchase: I added to my position in Adyen NV (ADDYF) @ $1,190.00. Continuing to build on this position that I recently initiated a couple of weeks ago. See original post on my reasoning for going long Adyen here.

What are your thoughts on these purchases. Share a comment below.

Full Disclosure: Long FNV.TO, BIPC.TO. Our full list of holdings is available here.

Outlook for June 2020

May was a mixed month for investors. The growth stocks continued climbing and reaching all time highs while the value stocks continued suffering (as expected), although we saw a bit of a rotation from growth to value in the last few days of May.

Some secular tailwinds have helped the tech-focused growth stocks — such as SaaS, e-commerce, fintech etc. My focus remains on this area as we adjust to the new normal, looking across the chasm of this pandemic.

On the central bank front, the Fed has reduced the daily liquidity to “just” $5B a day. (Can we expect another taper tantrum?) The Fed indicated that negative rates are not a good tool, but as we have seen elsewhere, it may be out of the Fed’s control. The market always dictates what an appropriate yield is & I will be keeping a close eye on this front.

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