Recent buy – BAC

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6a00d8341c4eab53ef01b7c6d058b6970b-800wiOil is below $27 per barrel sent the DOW to the 15000s. I take this opportunity to increase my BAC position.

I’ve been buying BAC from $6,$7, $8-$17/share. So, I’m delighted to see BAC is now back at the $13.xx. Buying aristocrats are great. I’ve been soaring up on BAC, raiding my cash position to buy more BAC shares.

Couldn’t hold back any longer that these sell offs. 🙂 BAC has just reported earning 9% increase in net income. The financial institutions are making a killing at the moment. (JPM, C, BAC, GS, MS are all beating earning estimates). The financial sector sell off has nothing to do with the lagging of the American economy, 5-10% exposure to oil and gas lending from WFC or JPM doesn’t effect their earning as a whole. My gut is telling me to buy the very sector that is making a profit rather than buying oil stocks that hasn’t been beaten down as much given $27/barrel is putting them at a loss.

Now, my eyes are still on cvx, a member of the aristocrats. I read a report the other day since COP has spun off Phillip 66 which is the refinery business (Buffett is buying it), it doesn’t have the same leverage, therefore dividend will be a threat to their balance sheet. At 7% yield, making negative income, having to sustain $2-3 billions in dividend payout is massive. I’m mindfully watching the oil and gas sector for now.

Have you bought anything? What do you think about my buy? How much cash are you saving or you are unloading everything and see this crash as temporary? Please share your thought.

Full disclosure: I own shares of bac, JPM, wfc, c, and GS.

GA

6 Comments

  1. Great job Vivianne. Just stay consistent and unload as he markets keep dipping. No big deal. We don’t have to win big and getting a nice deal is good enough. Happy for your purchases and keep it up. Cheers my dear.

  2. I am eyeing WFC – but overall my plan is just to buy the companies in my portfolio in a steady and regular manner instead of pulling the trigger mulitple times.
    Nice buy though. I like you approsch of buying into the dips.
    D4s

  3. Good job taking advantage of the turmoil in the markets. You make a good point regarding financial stocks but I would prefer WFC or USB vs. BAC. Just my take. How about the beaten down Canadian banks? TD, BNS or RY? I know they are tied to oil and a weak Loonie but they all offer safe yield that’s pretty high. Thanks for sharing.

    • I like wfc too. I bought wfc around 41$, took the profit while it was $55, then bought back at $51. On my portfolio, it might look like I’m losing money, but wfc hasn’t fall below my cost basic yet.

      Td, bns, Ry, cm, bmo i bought them in September, so most of them are now entering the 10% territory. Canadian are in talk of decreasing interest rate to negative. I watched what happened to EU banks, I saw they will decrease further if that were going to happened. I’m going to be a bit more patient to wait for further drop to average down.

      I also took a huge profit from BAC also, that’s why it looks as though my cost is $16.xx, but my cost is $11. If it fall below this level, I’ll start losing money for sure. $13.xx looks like a steal deal for me. I couldn’t resist. 🙂

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