I just kept chunking $1,000 a month into my index funds and mutual funds! Dollar cost averaging, baby!!
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.
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:
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.
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.
A lot of great thoughts. Appreciate all the participation. Tom
Anytime if you are a long-term investor. Last Chance to Buy in While Dow is Under 25,000
Added a few shares to my NVDA holdings!
that’s how to actually invest in crypto!
I added a bit more international shares.
Is anyone thinking about adding REITs?
Bought some NWL, added some BRK-B, VT and VTI.
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!
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.