04.10.2022 Portfolio Update (Monthly Edition)
Topics: Announcement, Quote, Portfolio Update, Portfolio Discussion, More Books, Tax Season, & Monthly Munchies.
I have decided to try and do the same post as this but add audio to it!
Audio (podcast?) is an add-on to this type of post with additional color on each Topic.
Quote for this month:
“Courage doesn't always roar. Sometimes courage is a quiet voice at the end of the day saying, ‘I will try again tomorrow.’” - Mary Anne Radmacher
*I am NOT a financial advisor, I’m sharing my investing journey. Do your own research.*
P&L Snapshots + Account Details w/ Monthly P&L:
Sometimes doing nothing is doing a lot and sometimes doing a lot is doing nothing!
What I mean is we really should be more elastic and do when we need to do something and do nothing when there is nothing to do, until recently there was not much to do due to a lot of uncertainty and although the uncertainty is still there (with geopolitical UA vs RUS and other things like oil and interest rates) we can also see that things most likely wont escalate quickly and all of this will drag out for some time and since I don’t see too many buying opportunities I’m starting to do more option trades on weekly/monthly basis (if I see them playing out favorably)
A few things regarding portfolio:
Monday DISCA /K will become WBD
It will be interesting to see how market reacts tomorrow (whole week(s)?) to the merger and since I never been in this kind of situation I will be keeping a close eye on it. I did raise my stake in DISCK to 300 shares and really am willing going up to 5-7ish % of portfolio if we go lower.
Twitter and Elon Musk
The unexpected (sort of, I definitely didn’t call it) happened. EM took a 9% stake in TWTR and now will (probably) be causing noise and trouble around the company to “make things happen”. The problem is we really don’t know what those things are or his agenda. Personally I’m not buying anything what he says/does but do see this as more bullish then bearish for the company as it might make Twitter start being more productive and escalate on execution (one will hope at least).
Below 40-30 I will probably be adding (as you can see I have puts on).
“It’s truly does show that in order for stock to unlock value there has to be a key to unlock it and that key is not what you believe it to be but the market, in this case its EM.”
For fellow GOOGL shareholders:
I have C put options expiring next week into the earnings (oops) will see what happens there but below $45 Citigroup should be interesting and its trading below book value the problem is market doesn’t believe into turnaround story and I want large margin of safety.
chances of BABA to go to $50 are unlikely by next week.
Dividends for March:
Everything else is pretty much hold and wait, I’m willing to trade FF and OPRA for OMAB (below $55) or $C (below $45) or if anything else comes as opportunity but that is after I deploy my $8,000ish cash.
For the month of March I have listened to two books and started reading one physical book (that I will be reading on and off).
Decided to go more spiritual/psychological route for month of March with the two audiobooks.
Fallen Leaves: Last Words on Life, Love, War, and God by Will Durant
Honest reason why I listened to Fallen Leaves is because its free on audibles and I really wanted to take a little break from 100% investing related books.
It’s an okay book if you would buy and a good book to listen to for free. Will Durant is known for history books, so listening to his last book that is more on real life lessons and thoughts from his life was a nice and something different. Although I do not agree with a lot of his ways on things he should be given at least some credit since he was born 1885 and died 1981.
Any time someone lives for almost 100 years and writes about, I think its worth a listen!
I give it 2.5 out of 5 stars.
After Russia invaded Ukraine and with everything else that is going on in my life, investing took the passenger seat and I don’t know (I mean I kind of do but not 100%) why but I was drawn to listen to The Science of Fear.
TSOF goes into human irrationality when it comes to probabilities of death and fear of something bad happening like its more likely we will die in a car accident then in a plane crush but that’s not what people would think after 9/11 happened or how much media blows up little things to keep us in fear when there isn’t much things to fear when you look at the actual stats.
Books throws around a lot of facts and stats and it sometimes can be boring but definitely sticks to the theme to explore and explain many “fears” that are popularized by the media and just our brain not really thinking things through logically.
I give it 4 out of 5 stars.
This is the book that I have not finished and I do not think I will finish in one go (mostly because its a physical book and not audio) but the checklist has some interesting questions that we (as investors) should be asking before investing (doing research) into a company to make sure we cover as many blind spots as possible and to have strength and will to not bail out of stock on “bad” news because we already knew a lot before investing BECAUSE we asked the right kind of questions in our checklist.
“Read books are far less valuable than unread ones. The library should contain as much of what you do not know as your financial means…allow you to put there.” - Nassim Taleb
Since taxes are due (last day) on April 15th, I wanted to take a look at my taxes related to investing. I thought some of you might find this interesting.
ST Profit - around $170
ST Profit - around $3,000
LT Profit - around $400
Qualified Dividend - around $400
ST Profit - around $12,000
LT Profit - around $8,000
QD - around $5,000
As you can see every year the profits are increasing due to companies like DISCA IRBT (which is good?) but when short term profits increase that means short term tax gain does so too also that Qualified Dividend is probably more of a outlier due to companies like $FF and ORI doing Special Dividends.
When being on fintwit too long, you get a feel that you must #NEVERSELL and look for #MULTIBAGGERS but I think that’s only partially true. Why? Because although I don’t think anyone of us can really time the market, I believe we should take profits when it makes sense (example from me are $DISCA $IRBT) both went too high too fast and really there was no reason to #NEVERSELL them.
It would be nice to sell them for LT Profit but when things move and they move fast, I’m okay with paying taxes on ST gains, those shouldn’t be the “norm” though.
In current environment I think its okay to take profits and re deploy them as long as you have some play to re deploy them!
Lastly, I also failed at selling OPFI for a loss to offset my gains and so received “wash Sale Loss Disallowed” for around $5,000 so much for me thinking that I’m so smart to sell something for a loss to offset profits, still not sure why it didn’t work, maybe because of the call options I still had? I don’t know but definitely not too happy about it.
And SO Uncle Sam is getting a nice pay check from me this year, I guess good problems to have and better yet to try to avoid them for the future by selling LT and not ST when its possible, don’t believe we can do much with Special Dividends…gotta pay the men when the dues are due!
Here are some things to munch on…
What I've Been Reading (Substack)
The Education of a Value Investor (Substack)
Thank you for reading all the way to the end…
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P.S.S.S Audio format was inspired by