Saturday, September 21, 2013

Brazil cuts the cable to save money...has to go to bar in Ecuador to watch World Cup.

Oh Brazil, between your crummy economy and you're not wanting to be spied on.


On to investing...


We have been considering GE as a potential investment, but we weren't sure what that would do to our sector weighting, since they do so many different things in such a wide variety of sectors. It is almost like a one company ETF in a way. Then we started to look at EXC: 

Fund/Stock
Pros
Cons
Good/Bad?
EXC is a power company based in Chicago, that is the result of some mergers. It is huge. They might turn on your lights. 
High Dividend (4.1%)*
Low Beta (0.35)*


Helps balance our portfolio since it is a Utility. 

Gets us a little more invested in the US

On a steady decline since 2008, especially when compared to others in its sector (see chart below). 

This might mean that it is either in the crapper or undervalued. 

   



As we were going through the pros and cons of EXC, we decided that it might be good to combine a buy of CHIQ and EXC which would give us a great deal of balance. We compared these to others in their sector and started to realize the both EXC and CHIQ, though great for our portfolio balance might not be the strongest players in their respective sectors. This is the point in the program where we remember that investing is about balancing all those plates you have in the air and not just focusing on that one red one that looks so shiny, so spiffy...oh Fiestaware...

For next week: 

More Avi stocks. 

Profit

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