I’ve decided to start my blog again after entering the CNBC Million Dollar Portfolio challenge. I have $1m to invest, 90% in equities and 10% in currencies. I called my fund the Scorpio fund.
I signed up the week before last and invested in a few stocks. I choose a defensive portfolio because I think the US and UK consumer is still worried about the future and until they are more confident they will remain thrifty. My investment portfolio contained a mixture of consumer and non consumer stocks, industrial and technology.
Currently my portfolio contains:
1) McDonalds
2) WM Morrisons
3) 99 Cents stores
4) Nokia Oyj
5) Walmart.
I had AGCO the agriculture equipment manufacturer in the portfolio. I made a 9% return on this stock in a week and sold out.
My reasons for buying McDonalds, the US population love fast food and McDonalds are transforming themselves with a healthier image and this is paying off. The valuation is ok also. But in this market I think sentiment is important.
My reason for buying Morissons is that I like the turn around they have done in the last few years. They have a new CEO who seems on the ball. Their large format store’s always has good fresh food at very competitive prices. I spend a lot of time wandering around supermarkets and Morrisons impresses me the most compared with Tesco and Sainsburys.
The 99 cents store is a must during times of economic hardship. Consumers are flocking to the discount retailers.
Nokia is my turnaround story, having been beaten up the last few years by Apple and Samsung they are now more focused. They are launching 12 new handsets in the USA alone. They have cash on the balance sheet and if acquired they have billions of dollars worth of patents.
Who cannot like Walmart. They have such a presence globally and have the best procurement system available. I expect consumers to flock to Walmart for the Christmas etc.
The value of my equity portfolio has increased from 900k to 936k in 6 days. All my investments are in the black.
I’ve not made any more purchases this week but I’m considering a few. Citigroup is one I’ve been looking at.
With more negative economic news from Europe expected, I’m limiting my European exposure and looking at blue chip brands in the USA.
Bye for now
