Portfolio Update: New Addition (GILD; February 27, 2015)

by FI Fighter on February 27, 2015

in Stock Portfolio Updates

gileadlogo

So, it looks like I’m going to be closing out the week with yet another stock purchase after all. I put in a limit order to purchase some more shares of Gilead Sciences (GILD), unsure whether or not it would actually get filled…

Earlier this morning, I got notice that the order went through and I was able to purchase 43 shares of GILD for $103.10/share. I now own 100 shares total.

This purchase doesn’t help me reduce my cost basis, as I initiated a position last time at just about the exact same price of $103.14/share… In hindsight, I should have just purchased 100 shares to begin with so that I wouldn’t have had the need to execute multiple transactions… But then again, this happened because I didn’t know how many shares of GILD I initially wanted…

In the short-term, it doesn’t look like the price of GILD shares is moving much, and one could argue that I should have waited for a more opportune buying opportunity. There is a lot of resistance at $105/share, and the stock is trading sideways, for the most part. Outside of any breaking news, it doesn’t look like the stock is going to be rallying upwards any time soon. I plan on being a long-term holder, regardless, so in a way I just wanted to make this purchase and get it out of the way. Now that this order has been filled, I’m going to focus my attention back onto better income producing stocks.

In the past month, I’ve been able to top off my positions in the following stocks:

  • 400 shares of Alibaba (BABA).
  • 150 shares of Johnson and Johnson (JNJ).
  • 100 shares of Gilead Sciences (GILD).

As Dividend Mantra recently alluded to, I need to keep it simple. I plan on doing so by sticking to the plan.

  • Identify the long-term stocks that I want to own.
  • Purchase them (preferably in large chunk quantities to make life even more simple).
  • Sit back and do nothing.

I recently put together a shopping list of stocks, coined the “I Hope This Works Fund“. Now I’ve just got to execute the plan. I’ve got over $70,000 invested, as of today, but I’ve still got the bulk of my capital set aside for a larger market pullback. I’m still waiting for a better opportunity to “back the truck up”.

It’s going to be a slow and steady process, but I’m very much looking forward to rebuilding my stock portfolio. With real estate prices still going UP, UP and UP, I’ve lost just about all interest in buying any more properties (especially local ones). Further, I came to the realization a few months back that I’ve accumulated enough debt, and I need to be satisfied for the time being. I’m trying to put the clamps on greed

Right now, I’ve just got to be patient and wait for the market to turn. Next up, I’ve got my eyes set on some income producing stalwarts: Coca-Cola (KO), Pepsi (PEP), Chevron (CVX), Emerson Electric (EMR), and AT&T (T).

Just waiting for a chance to pounce…

 

Happy Hunting!

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{ 3 comments… read them below or add one }

1 Roadmap2RetireNo Gravatar February 27, 2015 at 10:15 am

Really like this purchase, FIFighter. I think GILD is positioned well for the future. The earnings are expected to increase. A LOT. And now that they are dividend payers, it appears that they might follow AMGN in raising them year after year.

Best wishes
R2R

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2 FI FighterNo Gravatar February 27, 2015 at 10:34 am

R2R,

Yeah, I also like this stock a lot. I think there’s a lot of uncertainty right now and Wall Street is in a “show me” state, so until they blow out earnings to show that the price reductions/competition with ABBV for the Hep C business aren’t impacting the bottom line too much, the stock will be reluctant to continue surging ahead.

By no means am I an expert when it comes to biotechs, but the consensus I get from reading articles is that the future pipeline is very strong and management very competent. Share buybacks of $15 billion and the new $0.43 dividend are drawing even more “value” seeking investors. I never really know what to think when it comes to share buybacks, but it looks like a great idea if shares really are undervalued. Obviously, as an income investor I’m digging the new dividend and can only hope that they grow it at the same rate that AMGN did.

I would like to initiate a position with AMGN as well, and will keep an eye out for (hopefully) a better buying opportunity. Thanks for the tip on that one.

All the best!

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3 No Nonsense LandlordNo Gravatar February 28, 2015 at 6:27 am

Take your time. Use incremental investments. Stick with solid index funds if you really want to sit back and relax.

Sooner or later your stocks will make money. If you have the patience. But they may never beat a solid index fund. And they may never give you an opportunity to ‘switch’ to something else without paying a large sum in taxes.

Just look at the capital gains hit that owners of Medtronic got stuck with for their ‘buy and hold’ strategy. Just when you have it all set, the company makes you sell it all and buy new shares. And pay a huge capital gains tax that may wipe out your net worth by a third.

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