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Pandemic Portfolio: Update #7

This is an update to a series. See Starting a Portfolio from Scratch to learn how it started.

Let’s do the time warp… again…

The markets entered their regular rotation this week once Pfizer (PFE) announced its vaccine candidate has a 90%+ efficacy rating. Investors dropped the growth and tech stocks like they were hot in favor of industrials and travel/leisure plays. 

However, the trick to investing is to remain contrary. The best time to buy the growth/tech plays is when they’re on sale, not when everyone wants them, so it was time to eye some of the portfolio’s positions for good spots to add on.

Plus, as always, it’s never a bad time to take a moment to review the plan and see if we can’t make some updates here and there…

Barrick Gold (GOLD): Added to Position

Current Price: $25.89
Per-Share Cost: $26.25 (-$0.01 from last update)
Profit/Loss: -1.37%
Allocation: 1.900%*
Next Buy Target: $24.20

When the markets went bonkers following the election of President-Elect Joe Biden and the COVID vaccine news from Pfizer (PFE), the precious yellow metal gold sold off in a big way. On Tuesday, I added some more to my Barrick Gold (GOLD) position when it tried for Monday’s low with an order filling at $26.23.

The order reduced my per-share cost by a negligible -$0.01, but, more importantly, increased my allocation. With federal stimulus virtually guaranteed in the coming weeks or months, the potential for further weakness in the U.S. dollar is high, so GOLD remains a hedge against that risk.

GOLD closed the week at $25.89, down -1.30% from where I bought Tuesday.

Costco (COST): Strategy Update

Current Price: $378.84
Per-Share Cost: $303.50 (Unchanged from last update)
Profit/Loss: +24.82%
Allocation: 3.714%*
Next Buy Target: $336.90

Even during a week where investors sold off all of the stay-at-home plays, Costco (COST) remained vigilant. No messing around – if I’m going to want to add to this position, I’m going to have to get aggressive. I’ve raised my next buy target to a support point above Costco’s 200-day Simple Moving Average (SMA) in order to ensure I can add some to this amazing retailer that performs no matter the circumstances.

Crown Castle (CCI): Strategy Update

Current Price: $168.01
Per-Share Cost: $162.50 (Unchanged from last update)
Profit/Loss: +3.39%
Allocation: 4.133%*
Next Buy Target: $155.30

Crown Castle (CCI) bounced hard this week taking my position into the profitable territory. Since this one’s a notoriously volatile position, I’m sticking with my next buy price target around $155.00.

Digital Realty Trust (DLR): Added to Position

Current Price: $144.65
Per-Share Cost: $138.21 (+$0.01 from last update)
Profit/Loss: +4.66%
Allocation: 4.278%*
Next Buy Target: $133.30

Digital Realty Trust (DLR) sold off substantially throughout week, filling a few orders I had in place at lower levels giving me an average buying price $138.23. The orders raised my per-share cost a negligible +$0.01 and increased my position in DLR with its $4.48 per share annual dividend giving my purchases a 3.24% annual yield.

DLR closed the week at $144.65, up +4.64% from my average buying price.

Microsoft (MSFT): Strategy Update

Current Price: $216.51
Per-Share Cost: $187.53 (Unchanged from last update)
Profit/Loss: +15.45%
Allocation: 3.185%*
Next Buy Target: $197.90

Much like Costco (COST) above, Microsoft (MSFT) remains a stalwart against all selloffs. Even while competitors in the FANG makeup like Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (Alphabet – GOOG) got hit hard, Microsoft ignored the selloff. Its ongoing strength is why I have once again raised my next buy target to $197.90, a past point of support.

Pepsico (PEP): Strategy Update

Current Price: $144.71
Per-Share Cost: $129.41 (Unchanged from last update)
Profit/Loss: +11.82%
Allocation: 2.858%*
Next Buy Target: $131.90

Pepsico (PEP) has finally come into its own. Despite being a stay-at-home pandemic play (which all saw the business end of the selling-stick this week), Pepsico (PEP) thrived and rocketed higher with the rest of the market. Accordingly, I’ve made my next buy target higher than my current per-share cost at $131.90, a past point of support. 

UnitedHealth (UNH): Strategy Update

Current Price: $355.67
Per-Share Cost: $280.03 (Unchanged from last update)
Profit/Loss: +27.01%
Allocation: 1.755%*
Next Buy Target: $297.90

Alright, there’s being patient and there’s being patient. UnitedHealth (UNH) couldn’t be taken down even with the election of a Democratic president, holding up strong this week in light of a failed “Blue Sweep” of Congress, effectively guaranteeing that UnitedHealth will continue making huge profits.

I give in. While UnitedHealth is notoriously volatile, I’ve significantly raised my buy target above my per-share cost in an effort to add more to this position should it sell off to just under $300, a past point of support.