MAY 16, 2020.
way you slice it investing’s about building on what you have. Long or short term it all adds up. Here’s how. Enjoy, because this story’s “DONE. Realized Gain +319%. One week.”
talked trading last week. That’s new to us. What’d we say? Long-term investors can also trade. We have been–both last week and this. What happened? Last week we cleared $114.00 on one trade. O.K. That’s cash in the pocket. What’s our guiding rule of thumb for evaluating a trade? It’s a question really. “Would you sneer if picking that cash up off the parking lot?”
Investing gains add up to nothing until you take the money off the table. After that it’s all over but the fussin’.
Profound change often arrives in a small package. COVID did. Our view has shifted profoundly and we mostly shared it with you last week. Investing and trading walk hand-in-hand, toward a much smarter place. For us the way is often “trading around a core position.” We multiplied our trading gain of $114.00 last week by 319.15% this week. $363.83 in a week, on six trades. That was Week 2 for us.
bought Barrick in two lots on Monday, and sold half on Thursday and the other 100 shares on Friday. $233.24. Barrick represents the majority of our weekly take. Why Barrick? Barrick is an industry leader in production and GOLD has returned 70.19% over the past six months.
Meanwhile Kirkland Lake has reversed by -12.9% over the same period. Why do we bother with KL? Their fundamentals are the best in the business, only growing stronger, and the past six months primarily represents shareholder confusion not fact. We felt that would change, dramatically. It is. We’re also furthering an investigation of Newmont Corporation(NEM.) NEM is now the performance leader returning 80.9% over the last six months.
is another trade we’re rapidly becoming happy to make. Is search going away? Digital advertising may lighten to some extent in the coming months, yet Alphabet is also a massive cloud player and a monster free cash machine. Besides, any future will feature Google, even if they missed the video conferencing play. Seen those pathetic pop-ups on your Gmail?
We day-played GOOG twice this week for $20 and $26. While others chuckle we’re ramming that cash into our pocket. Total time investment? Maybe 20 minutes.
week we played Alteryx for our $114.00 buck gain. It was fast. We played this great name again for another $45.00. We were in by 9:00AM and out after lunch. Total work time–five minutes. We know Alteryx, both their business and how their stock trades. AYX is a secular growth stock, of course meaning that it doesn’t need a strong economy to thrive.
CEO Dean Stoecker appeared with Cramer on Thursday to explain current conditions. What’d Dean say about sales? “We’re providing the automated analytics required by companies to operate efficiently. We just provided our analytics platform to Carnival Cruise Lines this quarter, at a time when they had no cruises running. We also sold our capabilities to Wynn Resorts this quarter at a time when they had no one in any of their casinos.”
focused on trading things we know, trust, and are willing to sit on if our trade doesn’t work. We’re sitting on AT&T, and we’ll be paid for that, one way or another. We got one hundred shares at $29.00. It’s now at $28.29. T’s current dividend is 7.35%. They don’t report until July. That dividend could be cut any day. Or it may not. Either way, if shares hit $31.00 before then we’ll sell out for a $200.00 gain. We may even buy more, if it begins to behave better.
learning to work multiple ways. Long-term investing’s great. Trading can work too. Money now helps. Until last week we’d gone for more than a decade without withdrawing a cent from our investments. We didn’t realize that those numbers had become abstract. The actual value they represent had faded.
Once we aimed only for large gains, while completely foregoing all attainable small gains. Small gains add up over time. They also remind us what we’re doing, and why. Our long-term holds go up and down. Meanwhile we pocketed $114.00 last week. This week we pocketed $363.83. DONE. We were lucky. We’re grateful. We’re also focusing on next week. As always, good luck and good investing.
Dare It Is. Capital One