BKLN

ALERT: Newsletter Portfolio Changes; Investing Is Simple, Not Easy

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Changes to the Newsletter portfolios Best Ideas Newsletter portfolio BRK.B: 8-13% à 3.5%-5% AAPL: 4.2%-6% à 6.5%-8% MSFT: 4.2%-6% à 6.5%-8% Dividend Growth Newsletter portfolio BKLN: 4.25%-6.5% à 0% KMI: 3.25%-4.25% à 0% LMT: 3.25%-4.5% à 6.25%-8.5% ORCL: 4.25%-6.5% à 6.25%-8.5% AAPL: 2.75%-4% à 3.25%-4.5% MSFT: 2.75%-4% à 6.25%-8.5% —– Hi everyone: Trust you are doing great. I wanted to let you know of a few newsletter portfolio changes we’re making today. In the Best Ideas Newsletter portfolio, we are reducing the position in Berkshire Hathaway (BRK.B) to the weighting range of 3.5%-5% from 8%-13%. Though we think Warren Buffett is getting back on track now that he has dumped the airlines and many of the banks, we no longer … Read more

Capital Appreciation or Dividend Growth?

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Image source: David Mulder By Brian Nelson, CFA Hope you are doing great! We had one question why we didn’t include an evaluation of the six ideas that were closed in the Dividend Growth Newsletter portfolio during 2019. Of course, these ideas matter, but let’s walk through why. For example, one dividend growth idea that was closed during 2019 was Xilinx (XLNX), with the stock ending 2018 at a close price of $85.17 (it opened 2019 at $83.39) surging to $116.55 by February 14, 2019 (the low on the session of its close date) for a ~37% gain in a very short time (excluding the $0.36/share dividend it paid along the way). Xilinx was a huge winner in the Dividend … Read more

New Highs! The December Call Has Been Well-Rewarded

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Image shown: Valuentum’s Dividend Growth Newsletter portfolio. Since inception, the newsletter portfolio has *never* had a constituent that experienced a dividend cut. We moved to weighting ranges beginning in 2018.   “The less the prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own.” – Warren Buffett (2018) By Brian Nelson, CFA While others are celebrating, we know better. This market could come down upon itself like nothing else. But for now. We breathe a sigh of relief. A company, Valuentum, that emphasizes the importance of timing and then delivers on that cold December 26 day to move to all-in in the newsletter portfolios is something remarkable (see image below). We cannot go back to … Read more

Earnings Not So Hot, High Yield Dividend Newsletter Archives

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No change to newsletter portfolios. By Brian Nelson, CFA Against a backdrop of US-China trade tensions, a Fed that continues to balance the need to hike rates with caution against purposefully and meaningfully inverting the yield curve, US GDP growth humming along at 2%-3%, and news from Tesla (TSLA) CEO Elon Musk, who says something big is in store for tonight. Incidentally, he changed his Twitter name to Elon Tusk. Was it to match our typo yesterday? Elon – if you’re listening, give us a shout out! We love Tesla’s future expected free cash flow! Just some housekeeping items before we get started. For our High Yield Dividend Newsletter members and our Exclusive members, we do not house the archived … Read more

Systemic Risk

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Image Source: Maximo Santana We believe the next crisis will not be a banking crisis, but one of a breakdown in market structure. By Kris Rosemann and Brian Nelson, CFA The volatility of US equity markets has simply been incredible of late. What a change of tune from the past 12-18 months. Many investors are growing more concerned about the health of US sovereign credit and implications on borrowing costs, the benchmark Treasury yield, and further, such implications on long-run equity values (rising interest rates in stock valuation models reduces intrinsic value, all else equal). Moody’s has been warning about the deteriorating health of the US as a result of tax reform, pointing to “at least a $1.5 trillion deficit … Read more

Tweaking the Newsletter Portfolios for a Rising Interest-Rate Environment

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Image Source: CreditCafe.com. 

Many market observers are anticipating the Fed to accelerate the pace of interest-rate hikes in 2018. We’re making a number of changes to the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio as we consider what a higher interest-rate environment might look like. We’re also cognizant of the impact that higher interest rates may have on the High Yield Dividend Newsletter and its simulated portfolio, the first edition to be released January 1, 2018.