Sunday, July 2, 2023

Portfolio Update - BAC, AXP, DVA, OXY

(Disclosure: don't trust random strangers for investing recommendations.)

In the last couple of months I wanted to invest some of the idle cash, so I allocated more to existing holdings and one new position.

Added 3.3% to Bank of America (BAC)

My initial position of ~2% on BAC was too small because of I only have that much room for US dividend tax exemption. Now bank stocks get cheaper after a series of bank failures - SVB, Credit Suisse, First Republic etc. I think the opportunity is good enough to offset the dividend tax. Plus it's one of Buffett's biggest holdings and Berkshire just bought more of BAC in Q1 23.  So I added 3.3% of the portfolio at $28.08/share

Added 2.3% to Davita (DVA)

DVA has gone up a bit since the initial position, but it's still not expensive. I increased the holding by 2.3% at $93.5/share. 

A 7.7% new position on Occidental Petroleum (OXY) 
This is just another copy-cat position. Berkshire has been buying OXY whenever it's below $60 and now it owns around 25% of the company.  

I had a quick look at the financials. OXY is a fat cash cow and is paying down debt and buying back shares. It seems heading in the right direction in terms of capital allocation. Hopefully not paying too much dividend because I have to pay tax on US dividends, but it's good too. 

I have no idea of where oil price would go but the company has contracted a decent amount of output at a good price. Buffett also speaks highly about the CEO Vicki Hollub. So I started a 7.7% position at $58.2/share

I haven't been able to find good ideas to put money in the last few months. There are a couple of potential ones that tick most of the boxes on business and management team, but the price just isn't cheap enough. 

Holding cash is better than gambling in stocks you don't know much about. I agree with that 110%. But here's an intriguing idea for you: Want an easy way to match Warren Buffett's returns? Just invest in Berkshire stock. I guess if you can have the best investor manage your money without fees, not a bad option. Right? 

For now, I will wait while keep exploring.

As at Jun 30, 2023:
CompanyTickerAllocation (MV)
Alphabet IncGOOGL11.2%
Berkshire Hathaway Inc.BRK.B30.5%
AlibabaBABA4.1%
Bank of AmericaBAC5.7%
DaVitaDVA9.4%
AmexAXP6.9%
OccidentalOXY7.4%
Pershing SquareAMS:PSH5.0%
HP Inc.HPQ3.6%
Total Stock83.7%
Total Cash (USD)16.3%
Portfolio total100.0%

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