With all the stock down I wish I had enough to invest a lot more than I have in the stock market but it is what it is. I need the money to live. Saying that this moth has been alright. A couple of my stocks have gone back into the possitive my overall – status has gone less negative and I have been doing ok.
I learnt something this month. You want to do the opposite of what the crowd are doing. I learnt this from the crash. If the crowd are buying you want to hold and wait for the hype to be over and see if the business is worth it.
Depending on the business, if people sell you want to buy. You have to keep an eye on the fundamentals and your tactics. But BUY it and keep it for the long term.
An example I could give at the moment is the Air lines. They took a huge hit, There taking it because of this pandemic. Theres only a few Idiots who want to fly but the normal Joe knows to stay inside and help the NHS and others but thats beside the point.
The point is there business fundamentals hasn’t changed. There still the best and biggest ones like easy jet Ryan-air and all those American ones and so on. Nothing changed in there business model (i sure think there would be but I am taking long term) I’m sure we will see them go back up once people want to go flying again.
Similar to Vegas. There taking a huge hit because there infrastructure depends on Tourism and very few people are traveling there now. But once this is over people are going to want to celebrate, get drunk married and so on again.
So although people are probaly selling all over (not much more anymore) But it shows it’s time to buy (Only if you can)
An example of this would be UK Ishare property. The price hasn’t been this low since 2013! Property isn’t going anywhere. People are always going to need houses (I suggest you do a lot more research then my very quick example).
Warren Buffet does a much better job at summing this up than I do.
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.Warren Buffet
Learn more about the man himself!
What I’m looking for…
At the moment I’m looking for those companies that haven’t cut their dividend in these times. I will be putting up a post about the Pandemic and my views on the different stocks I own and who I expected to cut and who I didn’t and my overall views (not about the disease but my investments).
I bought 2 Stocks in April.
As explained above I am looking for those companies that have kept their dividend up. Tesco did this. I had a look at their numbers and it’s not a stupid decision. There staying open and people will always need food (You’ll see the correlation with my other investment with this). But I want a company that will keep it’s dividend up in a pandemic and when a lot of the other businesses say no. I already owned a lot of Tesco before and it wasn’t a hard decision to add more.
The payout was a little high for my liking in this situation but it can afford it, so i’m content with it.
Tate & Lyle
This is more of a future growth and safety buy. It’s not predicted to grow by a huge amount but it’s a safe buy. There future dividend growth is good but it’s one ill keep an eye on. I haven’t put a lot into this company yet. I want to keep an eye on it and see what happens to it. It’s also deals with food which is in a higher demand due the virus so even if this doesn’t go away anytime soon I don’t need to worry it like some of my other investments.
What I said last month came through. I have done a lot of learning and seeing which companies I can depend on in ‘bad’ times. The top part of this post is only the big lesson I learnt but there are so many others. Where I have changed what I am looking for, in my investments.
At the moment I’m just looking at those companies that canceling there dividend when they don’t need to and just watching. I don’t have the money at the moment to invest. So for next month Ill just be looking and keeping up to date, hopefully see my % go closer to the positive.
If I had the money I would defiantly invest now! Some companies and etfs haven’t been this cheap in a while.
Invest in your future