|Sometimes it takes a WOLF to see if you have built a strong house.|
It will be interesting to see how some of the energy companies out there hold up to extreme pressure. I feel like the three I purchased today have brick-like characteristics. We shall see.
- BBL: 6.15 shares @ $40.66 --- Yield 6.10%
- RDS-B: 3.84 shares @ $65.10 --- Yield 5.78%
- CVX: 2.32 shares @ $107.78 --- Yield 3.97%
Total capital invested is $750 ($250 in each company). The combined yield on these purchases is 5.28% and will add $39.62 to my yearly dividends.
Falling oil prices continue to be story as it has been for the past several months. If there is ever a time to focus on my energy position it is now. I have no idea if a bottom is forming, but I will continue to average down my energy positions. Exxon continues to be the most resilient of the group and I would love to buy more shares, but I will be patient.
As I look at my portfolio, it is amazing to see how relentless and ferocious the storm has been. Many of my energy and oil positions are hovering at 25-35% unrealized losses. To many people it may seem a bit silly to receive a 4-5% dividend when it realistically could take many years to get back to even. That is not what long term investing is about and many people are running for the hills with a lot of blood trailing behind them. I will stay the course even though it is a bit scary right now.
What helps me sleep at night and continue forging ahead building my energy positions is the knowledge this is a long term process and I will not get overly frustrated during downturns or overly exuberant during massive upswings.
If suddenly P&G, Clorox, Pepsi, or JNJ were trading in the 50s, I would without any emotion or hesitation change course and start buying those companies. If only that would happen....:-)
I feel very confident that someday I will look back on these months and say to myself..."Why weren't you more aggressive during this period? Energy was a no brainer."
Stocks on my radar for next week are UL, TD, RDS-b, CVX, T, VZ, PM, CAT, and CVX.