Market Correction-What did you buy?


#21

I just kept chunking $1,000 a month into my index funds and mutual funds! Dollar cost averaging, baby!!


#22

I bought a couple S&P 500 index funds and keep adding to my REIT allocation. STAG and EPR at over a 6% and 7.5% yield respectively. I’ve been trying to get my REIT allocation up to 10% overall, so I have buy orders stacked as yields hit certain threasholds and a bunch executed over the last two weeks.


#23

Bought nothing… except my peace of mind. The whole downturn and upturn was too fast to do anything worthwhile. Maybe next time it will become a bear market. Then I will strike!

Except that I wrote about who causes the volatility:


#24

I totally nerded out. It was financially unnecessary, and I could get surprised again by market volatility, but I suspect it’ll work out just fine.

It’s been a long time since volatility was this high, and when it spikes then the options markets go nuts-- in a good way.

[Disclaimer: McMillan’s “Options As A Strategic Investment” (try a library) teaches the theory & tactics of covered call options and naked puts. If you can’t make the time to plow through this doorstop, however, then you shouldn’t be selling options.]

I’ve done this since 2011, 2-3 times per year when the prices were driven by volatility. I haven’t done it at all since mid-2016.

Last week I sold two naked puts on Berkshire Hathaway “B” shares. One contract expires in June and the other in September. BRK was trading at about $195 and the put’s strike price is $175. The June contract sold for $3.35 and the September one for $5.20.

This is a rebalancing technique. If BRK drops below $175/share (it could happen!) then the trader who bought the puts could force me to buy shares for $175. I’m good with that. I’ve followed the company for 20 years and the board will start buying back its own shares at 1.2x book value, which is roughly $150-$170/share.
http://berkshirehathaway.com/qtrly/3rdqtr17.pdf

The other possible outcome is that the options expire worthless (because BRK/B stays above $175/share) and we keep the money.

I’m not expecting any drama between now and September, but then options sellers rarely anticipate unexpected drama. I’ll post here if anything happens.


#25

A lot of great thoughts. Appreciate all the participation. Tom


#26

Anytime if you are a long-term investor. Last Chance to Buy in While Dow is Under 25,000


#27

Added a few shares to my NVDA holdings!


#28

that’s how to actually invest in crypto!


#29

I added a bit more international shares.


#30

Is anyone thinking about adding REITs?


#31

Bought some NWL, added some BRK-B, VT and VTI.


#32

Ooooh yeah @FIMeOuttaHere. I picked up a second batch of Newell as well! Here is to hoping we are both correct. Seems like easy money with a 10% earnings yield and makers of sharpies and such. [Did you see their crazy add for the crockpot in the superbowl?](http://CROCK POT Super Bowl 2018 Commercial - YouTube) . Apparently it was in response to a popular show that blamed the crock pot for a very bad ending to a leading character. And he Starboard proxy fight is fascinating to watch in real life - oh my!


#33

Perfect timing! Now that Ichan is in it, there should be some movement on NWL. It’s been beaten down so hard that there is a low downside at this point.

The crock pot thing was pretty ridiculous. I couldn’t believe people got angry over that.