It’s tough to write a blog about what you want to do financially in the future because so much can change. I’m going to explain my investing gameplan being fully aware things can change in the economy, stock market or life in general.
2018 and 2019 were big investing years for me in the stock market. In 2018 I purchased Facebook for around $165 per share. Its currently trading at around $220. Although I still feel like FB is undervalued, I am keeping my position as is, It would have to drop back under $200 to make me reconsider adding more. I also purchased a small share of DIsney at $100 per share, hoping it would go down a little more so I could add more. But it went straight up. I think with the new streaming service, along with their movies and theme parks the sky is the limit for Disney.
In Early 2019 Apple dropped to $145 per share so I bought. They have skyrocketed since. I don’t think Apple is overvalued. I think they will go up and up over time. But right now I think they’re fairly valued. Then in mid-2019 Tesla came tumbling down to $200 per share.I have always been intrigued by Tesla because I love their vision. But they have always been too expensive for me. So when they dropped to $200 that was like Christmas in July for me. They’re currently over $500 per share and have a lot of their future excitement already baked into their stock price.So I’m pretty much set in my position with them.
Late 2019 Uber dropped to below $30 per share. With their future potential I liked them a lot at that price so I bought. They’re probably the one company I would possibly buy more shares of if they dip around $30 or below. But right now they’re around $37 per share.
The S&P 500 has a collective P/E ratio of 25.01, which is the highest its been since November of 2009. With that, and already having a lot invested in stocks. I don’t see myself buying anymore in 2020.
With any extra money coming in, I have decided for 50% of it to go into index funds. This way I can still invest and be more diversified. Index funds are boring. But they’re less volatile. The ones I will be investing in will be high-yield dividend paying ETFs. I look to invest in multiple index funds in different sectors such as real estate, financials and consumer staples. Financials and REITS pay amazing dividends. Where consumer staples are good for your portfolio in case of any sort of crash or recession. I love index funds as an alternative to savings accounts.
I know I talk about not liking savings accounts. But I have decided to put the other 50% of my extra income into a “high-yield” online savings account. Although it’s great to invest as much as possible, it’s also nice to have some liquidity. Not only for emergencies. But, also to have a good amount of cash on the sidelines for future buying opportunities in the stock market. History has always shown that every so often the market has gone down for a period of time. Some have been more severe than others. Whenever that happens, I would like to be ready to take full advantage.
2020 is an exciting year because it will give me a chance to be more diversified. I’m excited to build a dividend portfolio that will re-invest and compound. Being invested in different areas helps me sleep comfortably.