Recent Buy: CALM

It’s been a while since I have made a purchase, but it was that time again. I was getting itchy scanning the different stocks that I was considering. Should I buy more VLO, POT, or start a new position in F? Neither! I went ahead and bought 50 shares of Cal-Maine Foods (CALM) @ $45.95 per share. This buy was at the higher end of the price today, but I am okay with that. The price will fluctuate, and I’m in it for the long haul.

This will add an extra $120 to my forward annual divi outlook which brings it to a new total of $2,646.95. I am $353.05 away from reaching my goal of $3k!

From their website:

We operate in a single segment. Our primary business is the production, grading, packaging, marketing and distribution of shell eggs. We sell most of our shell eggs in the southwestern, southeastern, mid-western and mid-Atlantic regions of the U.S. We market our shell eggs through our extensive distribution network to a diverse group of customers, including national and regional grocery store chains, club stores, foodservice distributors and egg product consumers. Some of our sales are completed through copack agreements – a common practice in the industry whereby production and processing of certain products is outsourced to another producer. The strength of our position is evidenced by the fact that we have the largest market share in the grocery segment for shell eggs, and we sell shell eggs to a majority of the largest food retailers in the U.S…We market cage free eggs under our trademarked Farmhouse® brand and distribute them across the southeast and southwest regions of the U.S. We market organic, all natural, cage-free, vegetarian, and omega-3 eggs under our 4-Grain® brand. We also produce, market, and distribute private label specialty shell eggs to several customers.

The bold portion is what really drew me to this company besides its simplicity. I like the fact that they are using cage-free. I think a lot of companies will be drawn to buy from them for this reason just to use as a marketing tool. It reminds me of the “green craze” where every hotel will have green placards everywhere to show you just how much they “love” the environment. I prefer my chickens to be able to do a warrior pose 2 before laying my eggs for my Egg McMuffin. Let them stretch their legs!

Coming up close to 1 year on this blog and almost 2 years of investing, I have started to think what the end result of this portfolio will be. I have only thought as far as have enough cash invested and live off of dividends. I am a little over half way done with reading The Intelligent Investor  and it has reinforced my commitment to this dividend method as opposed to excessive trading. However, learning the mantra ‘nothing is ever easy’ from a fiction book series and experiences in my own life makes me favor this strategy as opposed to a more aggressive trading strategy that has a higher probability of blowing up in my face.

With all of that said, I have decided I want 30 stocks in my end portfolio. At the moment here is what my dream portfolio will consist of (order isn’t important):

  1. BP
  2. TOT
  3. VLO
  4. OKE
  5. NAT
  6. T
  7. VZ
  8. JNJ
  9. PFE
  10. SBUX
  11. DIS
  12. AAPL
  13. BNS
  14. TD
  15. EMR
  16. POT
  17. CALM
  18. SJM
  19. LMT
  20. VFC
  21. F
  22. SO
  23. WM
  24. AWK
  25. IP
  26. O
  27. DEO
  28. MMM
  29. HD
  30. PAYX

Yes, Ford made the list! I read somewhere that you cannot be diversified unless one segment of your portfolio does worse than another. I like to read it as you cannot be diversified unless you hate one segment of your portfolio. IP, F, DEO, and LMT are the only new stocks that I would be even close to considering to initiate a position. I might have to play the patience game. However, as I said earlier I am in this for the long haul. There is really no way to time M&A to get a giant pop like HSY got recently. I believe that as long as I buy quality stocks at a reasonable price then performance will do just fine as long as I don’t sabotage myself. That is the key…

 

Take Care,

 

JT

 

June 2016 Divis

Hello this is going to have to be short and sweet due to current circumstances. I like divis because no matter the situation, they do work for me that I don’t have to do myself. It’s very nice. Now to the results for June 2016:

 

I had 4 companies pay me this month (EMR, JNJ, BP, and PFE) for a total of : $177.375

This comes out to a 51.4% increase from the last similar quarter (MAR 2016) where I brought in $117.13.

Savings rate was about 61% for the month of June. I put extra effort into it this month because I am still getting some of my pay taken out due to a clerical error where I guess I got over payed for travel over a year ago. It’s always nice to have extra motivation! I don’t cry over spilled milk though…only divis.

I always like a buffer…Usually don’t like gas tank to go much below a quarter left. Always like to have a little extra cash around. However, I am fairly laser focused on this goal so I do not mind pushing my comfort levels to achieve this.

Take Care,

 

JT

 

P.S. Sorry no time to edit but swear I did not turn into a spam bot.

P.S.S WOW!!!! HSY up over 20% due to rumors of MDLZ buyout! That must be nice for you HSY holders.