Odds And Ends -- Rambling -- On Investing -- July 15, 2022

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

Einstein: “The most powerful force in the Universe is compound interest.” He referred to it as one of the greatest “miracles” known to man.

Perhaps. As an investor, I would argue dividends are even better. What's the interest rate on your savings account? 

I continue to remain fully invested, and add to my holdings twice a month, buying shares during the first week of the month, and around the second and third week of the month. 

Once the economy started to go sideways, I changed my new allocations to:

• 50%: Buffett-like stocks; dividend-paying blue chip; value stocks; currently focusing on Big Cap that might do well in an economy coming out of a recession;
• 30%: tech, particularly semiconductors / chips
• 20%: energy, oil and gas; not renewable energy

Earlier this week I added to my TSM.

Today, we learn that Nancy Pelosi revealed that of yesterday she had a new multi-million dollar position in Nvidia. This may or may not be true. Link here.

From June 23, 2022, just a few weeks ago:

They're reading the blog: earlier today -- or was it yesterday -- I asked rhetorically whatever happened to Biden's plan to jump-start the US semi-conductor sector. 

I had not seen a thing. Now this, link here. This is absolutely amazing: my twitter feed keeps telling me how great the DEMS are and here we have the US Congress unable to get their act together. Truly amazing. For those who have forgotten, the DEMS control the White House and the US Congress, both houses. 

So, with the news that Pelosi has a new multi-million dollar position in Nvidia, it looks like the bill is about to be law.

Wow. 

From my perspective, if Nancy Pelosi's "reveal" raises the attractiveness of Nvidia, that should also positively affect other semiconductor / chip companies. 

Black swans and other birds. Definition of black swan here. I don't know what the opposite of a black swan is, and I don't know if Nancy Pelosi's "reveal" would qualify. Doesn't matter.

A reader once told me that folks who cannot read / do not read / cannot comprehend / do not understand financial statements should not do their "own investing."

I remember doing my homework decades ago when I made my first position in Exxon for our older daughter. The next day: Valdez.

Break, break.

I love dividends. A lot of folks don't. Some prefer capital gains instead. 

For those who prefer dividends, three recent articles:

• six cheap dividend stocks ...., Investor Place, April 7, 2022:
• seven dividend aristocrats ... Investor Place, February 14, 2022;
• six undervalued Dow stocks ... Investor Place, July 13, 2022.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

**************************
TSM Earnings

Link here.

• TSMC, the worlds biggest chipmaker, posted record net profit in the second quarter.
• However, TSMC CEO CC Wei said that some of the company’s capital expenditure would be “pushed out into 2023.”
• The strong results and outlook, but caution on spending, highlights the careful path chipmakers are walking at a time of concern about rising prices and the impact on consumer demand.
• key numbers for the three months ended June 30:
• Revenue of 534.14 billion Taiwanese dollars ($18.16 billion), a rise 43.5% year-on-year. That beat the 524.02 billion Taiwan dollar average from analyst estimates compiled by Refinitiv.
• Net income of 237.03 billion Taiwanese dollars, up 76.4% year-on-year and ahead of estimates. That was a record quarter in terms of net income for TSMC.
• The company which is Apple’s most important chip supplier, said it expects revenue to be between $19.8 billion and $20.6 billion in the third quarter, surging from $14.8 billion in the same period last year.