Rambling On Investing -- May 7, 2024

Locator: 47085INV.

AAPL: CPUs, GPUs, and NPUs.

 SRE:

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Investing Philosophy

But first we start with "bacon vs Spam." Link here.

• bacon
• more expensive
• more salt
• more fat
• more calories
• smoked (associated with colon cancer)
• Spam: not smoked; simply pork with a bit of salt added for a number of reasons which world-class chefs understand 
• Spam: fries up without splattering grease all over the stove
  

Now, back to regular programming.

Investing philosophy, from the blog November 6, 2023, some editing this date (May 7, 2024):

 Personal investing:

I remain fully invested, holding no cash.

I have a predictable revenue stream.

I have a rolling 30-year investment horizon. 

I have never and will never invest in bonds. My utility holdings and energy holdings now serve the same purpose as bonds.

I used to put my revenue stream into the market every two weeks; now I invest throughout the month, but zero out all cash by the end of the month.

I have six major buckets and invest at this ratio, with examples:

• big tech: 44% -- NVDA, AMD, AVGO, QCOM, TSM, SCCO (removed SWKS)
  
• big cap that pay dividends: 20% -- CAT, DE, UNP, CMI,
  
• energy: 20% -- DVN, CHRD, MPC, CIVI
• big pharma/retail pharma:  5% -- ABBV (removed WBA)
  
• Daimler, RACE: 1% (was 5%)
  
• MSFT: 10% (change)
• AAPL: only when "corrections"
  

The percentages / allotments represent some major changes.

Those percentages will change periodically. 

"Everything" right now suggests increased recession fears and/or market pullback after the first of the year (2024). Exhibits A and B:

• exhibit A: Berkshire
• exhibit B: Oregon pension fund;

Reminder: I am inappropriately exuberant about the US economy and the US market, I am also inappropriately exuberant about all things Apple.

See disclaimer. This is not an investment site.

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. Reminder: I am inappropriately exuberant about the US economy and the US market, I am also inappropriately exuberant about all things Apple. 

From October 31, 2023:

From October 31, 2023 -- yesterday -- Goldilocks opportunity for investors.

Locator: 45881INV.

From The WSJ.

Cash has rarely been this hot on Wall Street. Financial advisers warn holding too much can burn a hole in your portfolio. 

With markets rocky and cash earning 5% or more, investors have boosted their holdings of money-market funds to a near-record $5.6 trillion, according to the Investment Company Institute. Both individuals and institutional investors are piling in—asset managers now have roughly one-fifth of their portfolios in money-market funds, State Street data show. 

Cash was trash for years on Wall Street, where low interest rates left investors buying every dip, saying there was no alternative to stocks. The prospect of a prolonged period of higher rates has upended that thinking, buffeting both stocks and bonds while increasing the returns offered by some of the safest, shortest-term investments such as money markets. Yet many advisers caution that fees, taxes and inflation all undermine those returns. And one of the biggest costs is opportunity: 

By pouring money into cash, investors miss out on potential gains from holding a broad portfolio of stocks, bonds and other riskier investments. “Money-market funds are a rational place to be for the next six months. But over the long term, taking risks pays you more,” said Wylie Tollette, chief investment officer for Franklin Templeton Investment Solutions. 

“Keeping any more than a small allocation to cash in your portfolio, for any longer than the short-term, will ultimately cost you thousands or millions of dollars.” Though often treated as akin to a bank account, the funds differ from normal savings accounts and other cash-like investments, such as CDs. They typically lend cash to banks overnight (backed by Treasurys), park it at the Fed or invest in Treasury bills maturing in a few months. Still, they are considered equivalent to cash because investors generally expect to get their money back whenever they ask. To that end, the funds try to maintain a net asset value of $1 a share.

 Barron's, on Apple and other dividend-paying growth stocks, link here.