Portfolio Update: New Addition (CSX and NSC; September 28, 2012)

To say that railroads have been on my mind a lot lately would be an understatement. Just like when I play monopoly, my strategy for success is to ride the rails! Perhaps I’m getting a little too carried away, but at these low valuations, it’s been very hard to resist.

So, I gave in again today and added 60 shares of CSX Corporation (CSX) at $20.70/share. CSX was my first railroad stock, which I started back in March at roughly the same purchase price. I am pleased to have been able to add more shares at this attractive price point again. CSX has increased its dividend at a growth rate of over 25% in the past 5 years.

I wasn’t done. I also added to my Norfolk Southern (NSC) position, purchasing 20 shares at $63.70/share. I initiated a position with NSC just last week at a pricepoint of $67.41/share. Even at that time, I thought I was getting a bargain.

NSC has continued to slide further down, so I used today as an opportunity to dollar cost average down. The last time NSC hovered around $63.50 was back in June. I had this stock on my watchlist at the time, and was waiting for it to dip just a bit more. It never did, and the next thing I knew, it shot up to over $70. I didn’t want to miss this chance again, so decided to load up instead.

Factoring in these two new purchases, I’ve now made six transactions (EXC, EXC, NSC, INTC, CSX, NSC) in the month of September. I made zero in August. But still, even after going on a shopping spree this month, I am still finding some attractive valuations in the market. CAT and CMI are two in particular that I will continue to watch with interest. Just a little bit further, and I’m sure I’ll strike again.

 

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Part 4: How I Became a Millionaire at Age 30 (2012)Compounding IncomeFI FighterSB @ One Cent at a TimeJonathan Curry Recent comment authors
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Allaboutinterest
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Wow, you did go on a shopping spree. You made some great buys. It is hard to resist when you find a good sale and can lower your cost basis.

I actually picked up more NSC and initiated a position in CAT recently. I also own a little EXC in my income portfolio. I will have to take a bigger look at CSX. I do like the railroad stocks and will be watching to add more shares on further weakness. Take care!

Dividend Mantra
Guest

Big shopping spree there! Nice going. Your portfolio is going to thank you by providing you larger and growing dividends. That’s all the thanks you need!

I’ll be ready for some more purchases early next month. I agree with you that the stocks you purchased look great (except EXC, I don’t follow) and now big industrial stocks like CAT are becoming more attractive. I’d say that some of the bigger values right now can be found in industrials and tech firms. Much less value in the consumer and telco stocks (except VOD) as they’ve had a run.

Always fun to hunt for the values!

Best wishes.

Jonathan Curry
Guest

I was actually looking at either starting a position in CSX to diversify my new NSC position or adding to my NSC position this past Friday. Looks like you beat me to it.

SB @ One Cent at a Time
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how much of your portfolio is in rail road?

Compounding Income
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If you’re going to buy them, buy them while they’re on sale. Works for both shopping and investing.

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[…] Throughout the fall, many more good deals presented themselves, and I continued on with my buying spree, snatching up discounted shares of quality companies. […]

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