Investments Trade Log

[Seppia]

Bought a little more Campari today. They are trading at 37 PE but this is a company whose highest margin product (Aperol) is growing 20% YoY and has no competition.
Growing 45% YoY in the USA, now the largest market.
Plus they own another couple of brands that have no direct competitor (Campari, Grand Marnier being the largest ones) and a couple big players in competitive but still high margin categories (bourbon, rhum).
When a vodka with gross margins above 60% is your dog because of the very competitive nature of the business, you know you're doing fine.
Best run Italian company one can own and it's not close.

In the recent months I've built a fairly big position in British American Tobacco. Now my second largest individual holding.
I'm far from proud of it but there's very few things I'd be buying now, and I have to put at least a part of my excess cash somewhere.
A beaten down cash cow seemed like the best option.
Cash allocation also up, now should be north of 16% in spite of the run up in equities.

[Dream of Freedom]

Sold UBER calls for 3.45. 99.4% gain in a week. I love leverage.

[Dream of Freedom]

Bought 10 CUB @57.77. Trade.

[Dream of Freedom]

Sold CUB @59.41 for a 2.8% gain.

[jacob]

@DoF - You're gonna file your tax return sending it flat rate? How many trades this year so far?

[Dream of Freedom]

How many trades this year so far?

30 buys and 18 sales. Most of the portfolio is long term. I'm trading with under 0.5% of it, usually less, and only when I feel like it. I want to improve my skill though, so practice.

[George the original one]

Now we know why both Schwab and Ameritrade went to free trades...fresh from today's email:

"We're excited to announce that Charles Schwab and TD Ameritrade have reached an agreement for Schwab to acquire TD Ameritrade.

The combined company will retain the Schwab name, and will reflect the best that each legacy firm has to offer, including leading trading and wealth management platforms, investor education, award-winning service, and banking.* This should bring clients like you an outstanding investing experience.

For now, the transaction is subject to customary closing conditions and is expected to close in the second half of 2020. During that time, there should be no impact to your account or how you work with TD Ameritrade."

[George the original one]

Also, Interactive Brokers announced $1 trades recently.

[ertyu]

Feel like selling bull puts given the non-qe that'll hit hard first part of dec. I like amazon because premiums are rich, but have no idea what direction it'll go: feels to me like the spy pulls it up with the non-qe, and then as soon as that lets off, it wants to drift down and sell off. Thoughts/ideas/advice?

[jacob]

We've moved from the general risk-on/risk-off trade to the particular trade deal on/trade deal off trade.

[Seppia]

It’s really incredible how resilient this bull market has been.

I’m starting to think that nothing will be able to kill it until the general consumer finally caves (feels like it’s the only indicator that is still signaling strength)

[ertyu]

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[Seppia]

Care to elaborate on the "artificially pumped"?

[jacob]

Saudi Aramco IPOs at the highest value ever for a company gone public. Now why did they do that? (Rhetorical)

[5ts]

I too have a feeling there is some serious market pumping going on, but I lack the econ/finance background to really understand. Not pulling out or changing my investments, so not sure where this "feeling" is getting me, but there it is.

[Seppia]

Is it high? yes. But why "artificially"?
It's supply and demand.
I don't believe the "it's the FED!", as interest rates are much lower in Europe and Japan and those markets aren't nearly as expensive as the USA.
Certainly rates have an impact, but they come in response to some real problems.
Whether I think ultra low rates are the solution* or are healthy long term**, that's a different story, but there's always exogenous events influencing teh markets.


*I've always been a huge fan of Keynes, and feel like after years of nuclear monetary policy, fiscal policy would be much more effective and efficient but what do I know.
** I believe sometimes recessions have a good cleansing effect, and having one every once in a while is good for the long term health of the economy

[ertyu]

deleted irrelevant to thread

[ertyu]

deleted irrelevant to thread

[Seppia]

Your last two posts are in direct contradiction with one another.
I believe neither is completely true by the way.

[ertyu]

deleted irrelevant to thread